Elliot Wave Theory claims that Markets form similar patterns of formations on smaller time frames that are visible on higher time frames, (higher/lesser degree). Crowd behaviour which the theorist defined for traders or market participants is predictable in a manner that it ought to cause a definite result after each sequential or circumventing interval. First half of idealised Elliot Wave is Motive Wave, which consists of 5 kinds of movements but majority are in the direction of higher degree trend (3) and 2 the even movements are retracements or corrections from that higher degree trend. For example on a Monthly chart there is an Upward Trend in the markets then at weekly time frame motive wave would have 1,3,5 actionary movements in upward direction and two corrective movements in downward direction. Motive Wave is further categorised with Impulse Sub-Wave and Diagonal Sub-Wave. Impulse Wave is the normal Motive wave whereas the Diagonal Wave forms consolidation in a channel at 3rd level. The Cycle that I have marked on the chart is Elliot Wave Bearish Cycle which consists of 5 Motive Waves( 15 levels of downward trend and 10 corrective retracements in upward trend) plus 3 corrective Waves as in form of 2nd phase or 2nd overall wave of the Cycle. In my calculative assumption the Corrective Waves are ending ending 18200 levels for nifty and began at 16850. I hope I could make this loopic concept a bit clearer.
it's a motive wave and there are 1,3,5 only termed as motive waves
INDEXKING0
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who told you?
Swastik24
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@INDEXKING0, If you feel offended by my feedback in the right direction then I can only say the person who thinks he knows everything has shut the door to grasp anything of value. There is so much to learn only if you are open to it.
Anyway motive waves are of two types, impulse and diagonal. In both the cases, wave 4 cannot go beyond wave 2. Simply google it, if u r having hard time reading books on Elliot waves. In impulse wave 4 cannot enter the territory of wave 1, but when it enters the territory of wave 1 the entire wave becomes diagonal.
INDEXKING0
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@Swastik24, Do you know what is a MOTIVE WAVE and CORRECTIVE WAVE?
Swastik24
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@INDEXKING0, Actually its my fault to point out mistake in your chart, I shud not have bothered. Let people lose & suffer who cares.