Attached is a 3min chart of the NIFTY Sept. futures. The move started yesterday from DP support on the 15min and 60min charts - as you teach, today I took the TS2 buy on the 3min chart which resulted in 4.6R. With apparent resistance (covergence of multiple MA's) on the 60min charts, divergence of the STF on the 3 min chart took the DP trade on the 3 min chart - STF was strong at the first target, ran with the ATR stop and finally exited near the days low at the DP from the previous major swing low for +16R Profit. An amazing day overall of +20.6R Profit.
Jatinder, Private Trader
Elliott Wave Theory interprets market actions in terms of recurrent price structures that follow the Fibonacci sequence. Basically, Market cycles are composed of two major types of Wave : Impulse Elliott Wave and Corrective Elliott Wave. Impulse wave can be sub-divided into a 5-wave structure (1, 2, 3, 4, 5), while a corrective Elliott Wave can be sub-divided into a 3-wave structures (a, b, c).
For more a more detailed look at each Elliott Wave, click on the links below: