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Showing posts from August, 2013

Different Triangle Patterns

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In Elliott Wave Principle, there are 4 types of Triangle Pattern
1.Ascending Triangle 2.Descending Triangle 3.Symmetrical Triangle 4.Expanded Triangle
The above 4 triangles can be seen in a Bull market and Bear market. This can be seen in a below chart


Ambuja Cements: Predicting Through Gann Fan Anticipated Happened

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We had published an article saying that Ambuja Cements was one of the weakest cement stocks and can move down to 145-142 levels. We were almost accurate in mentioning the levels as the stock came down and made a low of 146.75 yesterday before the expiry of August series.
In our previous article we used Gann Fan to derive the possible support for this cement stock and we had even showed it to our readers. Yesterday the stock fell steeply and took support of the 3x1 line which is a very crucial angle. This angle of 3x1 has its own importance as prices move very slowly once it starts moving above it.
Find out the importance of other angles and how it can be used for trading perspective on 31st August and 1st September 2013. You can register yourself by writing to us on fivearcadvisory@gmail.com or you can call us on +91 022 23888933
You can also visit our official facebook page www.facebook.com/FiveArcAdvisory
Ambuja Cement Anticipated on 21st August 2013


Ambuja Cements Anticipated Happened a…

Elliott Wave Principle

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We all know the importance of Technical Analysis and how it works in today’s market. Technical tools like channels, Fibonacci retracements and oscillators like RSI, MACD etc do give us signals for when to buy and sell. Combining simple technicals along with advance technicals like Elliott wave and Gann Analysis always keep us one step ahead of the market movement.
Advance technical eradicate subjectivity and helps to take proper trading decisions. Today we shall see some important concepts of Elliott Wave theory.
In 1920 R.N. Elliott invented this theory and named Elliott Wave. He observed that there are thirteen patterns or waves that recur in market price data and are repetitive in form, but are not necessarily repetitive in amplitude or time.
We will now discuss some important concepts of Elliott wave theory R. N Elliott has discovered 2 types of waves in the market 1. Motive or Impulse wave 2. Corrective Wave
1. Motive or Impulse waves
Elliott said that an impulse wave should have 5 wave…

Square of 9

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W.D Gann a legendary trader and an analyst has invented many master charts such as square of 144, hexagon, square of 52 etc, amongst these one was square of 9.

We have discussed earlier about its origin, here we will be discussing the other concepts of this master chart. Square of 9 can be used in many ways and has different approach towards individual stocks, commodities and currency.

We will first see how this master chart was constructed by William. D. Gann. Gann in early 1920’s visited India and there he saw a square within a circle. Thereafter he went to Egypt and saw pyramids based on these observations he constructed Square of 9.

The chart has a square which is fit within a circle and there are numbers placed on the face of the square and outside the circle. At the center of the square we will place a starting number and then we will rotate with one increment at a time. One full rotation completes at number 9, and that explains the name of the chart. The numbers which are outside …

Ambuja Cement: Predicting Through Gann Fan

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Ambuja Cements is one of the leaders in cement sector but from past 3 months the stock has disappointed many investors and traders.
When the stock was trading at 210 levels in the month of July 2013 many investors thought that the stock will cross its previous high of 223 but it failed to do so and the reason was Holcim taking over Ambuja Cement. But does news drive the stock prices?
We will see with the help of advance technical tool known as Gann Fan. Gann Fan was one of the inventions of William. D. Gann. He always believed that when a stock, commodity or currency price favors a particular angle then it will test angle above and vice-versa.
Daily Chart: Ambuja Cement.

Analysis
In the late 2008 Ambuja Cement has started moving in a positive direction. The entire move from late 2008 to 2012, prices moved by forming higher high and higher low. Now in early month of this year prices started to move in a corrective manner.
We have placed Gann Fan from late 2008 and we can observe that in the…

Bharti Airtel: Anticipated Happened

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Yesterday we had published an article on Bharti Airtel by saying that its last leg on upside is over and has started next move on down side which can move down till 300.
We were very accurate in capturing this move as Bharti Airtel today made a low of 301 in the first hour of trade.
Daily Chart of Bharti Airtel on 19th August 2013


Daily Chart Bharti Airtel Anticipated Happened on 20th August 2013

Note: Daily chart not updated on 20th August 2013
We had mentioned in our previous article, that the stock has broken many supports and has completed a distribution pattern on smaller time frame which can lead prices lower till 300 levels.

Bharti Airtel : Pattern Trading And Elliott Wave Counts

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Bharti Airtel was one of the out performers in Tele Com sector like R Com, Tata Com etc. Looking at the current structure we can say that it has completed its last leg on upside and has started its down move.
This is only possible with the help of advance technicals like Elliott wave counts and Fibonacci Retracement to provide support and resistance levels.
Bharti Airtel Daily Chart

Analysis
From the above daily chart we can observe that prices from August 2012 were impulsive in nature and made a top in early January 2013 at 370. Thereafter prices are moving in a corrective manner. Impulsive move is very easy to identify as compared to corrections. We have placed Elliott wave counts to identify the next move of Bharti Airtel. The stock completed its last leg at 354 levels and has started its down move.
The stock was facing the resistance of 78.6 % retracement of the previous down move (370-266) even simple technicals like Adx has given fresh sell signal on 19th August 2013 which clearly su…

Difference between Elliott Wave and Gann Analysis

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Elliott wave Principle and Gann analysis both are different and unique. Thus both technical theories work very well in today’s market. Here we will not see the practical application of the theories but the difference between them
1.Elliott Wave Principle says that in an impulsive wave there should be 5 waves in which 3 waves decide the market direction and 2 waves are just the reaction. Whereas Gann analysis says that in order to know the trend of the market on the upside there should always be 3 section more than 3 section can be utilized as an opportunity to create short positions.


From the above chart we can come to a conclusion that more than 3 section will suggests that the trend of the market is not going to sustain and there are high chances for the market to reverse. This is one of way to catch a top or the bottom.


Nifty Mid Cap to move till 1550

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Nifty Mid Cap is moving in a down trend by forming a lower high and a lower low formation. On 31st of July 2013 prices broke its crucial support of 1802 and moved lower till 1722 as on 2nd August 2013. This clearly suggests that prices are negatively poised and has the tendency to move lower.
To justify our view we have used advance technical tools to find out the desired support and resistance of this index.
We have used Gann Fann and have placed it on the top made on 9th January 2013 from there on prices have moved below 1x1 line which is a very crucial to identify the support and resistance. Currently prices are below this line which clearly suggests that it is facing the resistance of this line. As far as prices move below this our favored view for this particular index is negative and can move lower till 1550 levels.

Nifty Mid Cap Daily Chart


We will not be publishing the method to forecast in this article

Infosys: Predicting through Gaps

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It is very essential to know the range of a particular Index, stock or commodity for trading perspective. In Infosys we can come to know that the stock was moving in a big range of 3000-2100 from past 2 years. Many analysts believe that such a rise in IT sector is due to US Dollar getting strong, but if this was the case how can we manage to know that Infosys is going to break its upper extreme that is 3000.
In our previous article we were very accurate in mentioning the level of this stock as it can move till 2800 when the stock was quoting at 2400 levels. This time we have come out with advance technicals such as Gann Analysis to predict the level for this IT stock.
Infosys: Daily Chart
Analysis
From the above daily chart we can observe that prices have take out its previous high of 3000. This is an important high as prices were moving in a range of 2100-3000 from past 2 years.
We have predicted the target for this particular stock with the help of Gap analysis which is a very important …