Hello fellow traders. In this technical article we’re going to take a look at the Elliott Wave charts charts of NIKKEI Futures published in members area of the website. As our members know NIKKEI Futures has recently made pull back that has unfolded as Elliott Wave Double Three Pattern. It made clear 7 swings from the June 16th peak and completed correction right at the Equal Legs zone( Blue Box Area) . In further text we’re going to explain the Elliott Wave pattern and forecast
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 common pattern in the market , also known as 7 swing structure. It’s a reliable pattern which is giving us good trading entries with clearly defined invalidation levels.
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 can have W,X,Y labeling.
NIKKEI Elliott Wave 4 Hour Chart 10.05.2023
NIKKEI made correction that unfolded as a 7 swings pattern. Pull back has (W)(X)(Y) blue labeling. First leg (W) is having Double Three structure – 3 waves WXY red, while (Y) leg is ABC Zig Zag Pattern. The price reached extreme area at 30630-29972 blue box ( buying zone). There is already enough number of swings to call structure complete at 30303 low. However, we would like to see further separation from the low to confirm. We expect NIKKEI to make a rally toward new highs or in 3 waves bounce alternatively.
You can learn more about Elliott Wave Double Three Patterns at our Free Elliott Wave Educational Web Page.
NIKKEI Elliott Wave 4 Hour Chart 10.14.2023
NIKKEI found buyers as expected. The futures made further rally from the Blue Box and made 5 waves up from the 30303 low. Bounce already reached 50 fibs against the (X) blue connector which confirms cycle from the peak is done for sure. Consequently, any long positions from the equal legs area should be risk free by now. We call wave ((4)) completed at the 30303 low. Once NIKKEI make a break of June 16th high, it will confirm next leg up is in progress.
Keep in mind not every chart is trading recommendation. You can check most recent charts and new trading setups in the membership area of the site. 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.