Nifty-Looking at the previous price action it does seem that we have more legs for the markets going up, before any noteworthy correction. The orange box I have given above for the turning point down has a large range simple because of the huge rise up , almost in a vertical manner.
Elliot Wave analysis is simple in its theory but takes some effort to comprehend in its entirety. Below I am giving a simple description of an impulse wave having of course 5 waves.
WAVE 1 This is the 1st wave and is typically the shortest. (Beginning of the impulse move so making TENTATIVE MOVES.
WAVE 2 This is the corrective to the 1st wave. The depth of this correction gives an indication of things to come.
WAVE 3 This is normally the largest wave where participants pile in and dont want to be left behind
WAVE 4 This is the corrective to wave 3. Since wave 3 has a large run up, correction takes longer, time wise and the markets can move sideways in a range(Or flats and triangles)
WAVE 5 This is normally the most non predictive wave as by definition it can extend or terminate suddenly. One needs to keep tight stop losses.
NIFTY Opening On 1st August 2023 1