Sensitive Float Index Update 25 January

Wherever I go and meet new people (as people who know me already know the way I work), the only question I get is “Which company is good? Which stock should I be buying now?”.  Stock market IS NOT only about getting information on at what level one should get in and get out and act on that. At the beginning of my career some years ago I was moved by this quote- “ Give a man a fish, he will eat one day. Teach a man to fish, he will eat life long.” At that time I chose to be the latter one, and here I am today, moving along and still learning happily. Not necessarily this should have any relevance to you, but there are a lot who think Stock Market is a quick buck machine. Well, only time will tell.

Let’s get to today’s discussion.

Very important question - Is this setup (Elliott Wave Theory, Motive Wave, Impulse Wave) starting 29 June 2020 in play ? If yes, then the current run must be a 5th leg before correction. If not, then we will see in the coming days how things unfold and we will update likewise. But so far, we’ve found it convincingly yes, just yet to figure the 5th wave termination.

Let’s have a quick look at Guidelines and Fibonacci Ratio Relationship of Impulse Wave.

Guidelines:

1. Impulse wave subdivided into 5 waves. 

2. Wave 1, 3 and 5 are impulse (meaning the one that is moving towards the bigger major trend, in case here - Uptrend)

3. Wave 2 can not retrace more than the beginning of Wave 1

4. Wave 3 can not be the shortest wave of the three impulse waves, namely Wave 1, 3 and 5

5. Wave 4 doesn’t overlap with the price territory of Wave 1

6. Wave 5 needs to end with momentum divergence.

Fibonacci Ratio Relationship

1. Wave 2 is 50%, 61.8%, 76.4% or 85.4% of Wave 1

2. Wave 3 is 161.8%, 261.8%, or 323.6% of Wave 1-2

3. Wave 4 is 14.6%, 23.6% or 38.2% of Wave 3 but no more than 50%

4. There are three different ways to measure Wave 5. First, Wave 5 is inverse 123.6% - 161.8% retracement of Wave 4. Second, Wave 5 is equal to Wave 1. Third, Wave 5 is 61.8% of Wave 1-3 (this one in particular, figuring out the Wave 5 is somewhat tricky and not falling in right place together, may be there is some more to come and see in coming days)

We let you play with your charts and confirm the above mentioned guidelines and fib relationship ratios and comment your thoughts.

This analysis is done on Sensitive Float as it pretty much mirrors NEPSE (or maybe otherwise around) and Sensitive Float is considered to be a core component of NEPSE itself (?).

#tradewithramesh #nepalstock #sharemarket #sharebazaar #NEPSE

Please note that due to market volatility, some of the above sight prices may have already been reached and scenarios played out. Trade in your own discretion.