Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of NIKKEI Futures ( $NKD_F) published in members area of the Elliottwave-Forecast . As our members know, NIKKEI is showing higher high sequences in the cycle from the March low. Consequently , we recommended our members to avoid selling NIKKEI in any pull back and keep on buying the dips in 3,7,11 swigns whenever get chance. Recently we got short term pull back that has unfolded as Elliott Wave Double Three pattern. In further text we’re going to explain the forecast and Elliott Wave Pattern and trading strategy.
Before we take a look at the real market example, let’s explain Elliott Wave Double Three pattern.
Elliott Wave Double Three Pattern
Double three is the most important and common pattern in the market these days, also known as 7 swing structure.
It’s a very reliable pattern which is giving us good trading entries with clearly defined invalidation levels and target areas.
The picture below presents what Elliott Wave Double Three pattern looks like. It has (W),(X),(Y) labeling and 3,3,3 inner structure, which means all of these 3 legs are corrective sequences. Each (W) and (Y) are made of 3 swings , they’re having A,B,C structure in lower degree, or alternatively they could have W,X,Y labeling.
NIKKEI 1 Hour Elliott Wave Analysis 10.15.2020
NIKKEI s ended short term cycle from the 22986 low and now correcting it. Short term pull back is unfolding as Elliott Wave double three pattern with inner labeling: ((w))((x))((y)) blue. Each leg of the pull back has corrective structure. At this moment we can count clear 7 swings down from the 10/09 peak . Pull back has already reached its equal legs zone at 23443-23289 area . We favor the long side from the mentioned zone. As the main trend is bullish we expect buyers to appear for 3 waves bounce at least. Turn can happen any moment.
You can learn more about Elliott Wave Double Three Patterns at our Free Elliott Wave Educational Web Page.
NIKKEI 1 Hour Elliott Wave Analysis 10.20.2020
NIKKEI found buyers at 101.212-100.57 , the Blue Box area. We got nice reaction from there so far. Wave (2) pull back ended at 23378 low as Double Three Pattern. However we would like to see further break above (1) blue peak ( 10/09) to confirm next leg up is in progress.
Keep in mind that market is dynamic and presented view could have changed in the mean time. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room. You can check most recent charts in the membership area of the site.
Elliott Wave Forecast