Recently listed Stock Jain Resource Recycling Limited - CMP - 392.50
Comparing the Impulse Pattern in this stock based on Basic Elliott Wave Study and Gren Neely's Neo Wave Study.
1. Wave is internal 5-3-5-3-5 structure
2. Wave 2 is corrects less than 61.8% of Wave 1
3. Wave 3 went beyond the wave 1
4. Wave 3 is not shortest wave amoung the Wave 1, wave 3 & wave 5
5. Wave 4 low didn't gone into the territory of wave 1
6. In addition, Wave 5 exhibits the ending diagonal structure.
So, As per Elliott wave Study, this is Perfect Impulse wave and correction is started further after wave 5.
But let me tell you that this is not Impulse Wave as per advanced Neo Wave Study.
Why?
Neo wave study is having many rules which confirms the existing wave is NOT an Impulse wave.
It Support all the above rules but below few of the additional rules is not supporting
1. Rule of Extension - Not Supported - There is none of the extended wave anong the wave 1, 3 ,5.
2. Rule of Touch Point Rule - Not Supported - There was none of the 4 touches the oppsing trendline amount the 6 touch point.
3. Rule of Two Stage Confirmation - Not Supported - 1st Stage or Even 2nd Stage reversal confirmation is not seen, reversal takes more time.
So this is not a Impulse Wave based on Neo Wave Theory.
Why it needed to confirm the whether it is Impuse or not?
- It is because it will help to anticipate the next corrective move....
Neo wave will have concept of Post Pattern Implication which helps to anticipate the further move.
Since it is not an Impulse then it is corrective structure on upside and we should lebel it in corrective formation which helps to catch the next move.
Post is shared for just Education and Learning Purpose. This is not Buy or Sell recommendation.
Please comment if you have any query. Thanks!!!
Thanks and Regards,
Yogesh Tamkhade
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