Targets and Stops - Previous fourth retracement

One of the most effective target calculation techniques is based on the previous fourth retracement. According to Elliott, prices move in a five wave structure and after completing such an impulse, prices tend to retrace at least till previous fourth levels. This is why after a peak or bottom, the respective levels become an important target to watch. We illustrated here an anticipated and happened case related to the previous fourth retracement on the Indian market.


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2 Comments

  1. Varun
    Posted 20 July, 2010 at 07:17 | Permalink

    Thank you…looking forward for more educative articles on the Elliott ad Fibonacci

  2. Posted 21 July, 2010 at 02:14 | Permalink

    In that case Nifty is heading for 3920 levels once this diagonal 5th wave gives clear signal of ending, as that was the 4th wave target of the run-up of waves 12345 from 2250 to 5450. Very difficult for many to accept now but a strong probability. Thanks for your regular updates.

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