In this article we will discuss the Elliott Wave structure of IRB Infra which was identified and traded by one the “Waves Of Wealth” members. So far the stock has moved up by more than 20% and still the member thinks that there is an upside potential in the stock.

The member took a reference from a weekly chart and the labelling on a weekly chart was done as follow.

So as per weekly chart the member thinks that still the stock is in Wave 3 and may continue its upward momentum.

Trade Set Up on a Daily:

After posting a high around 190 the stock retraced around 148 levels which was wave 4 correction of the 3^rd wave of a higher degree (weekly). On a daily chart the structure looks as follow.

Let us now discuss wave 4 correction of the 3^rd of a weekly in details.

So, as we can see the wave 4 correction terminated between 0.382-0.5 levels. It was a Simple Correction where wave b retraced around 0.5 and wave c extended around 0.786. Usually in a Simple Correction as per the Guidelines of Wave Principle, wave c extends around 100% of wave a.

However, in this case wave c extension in wave 4 was less than 100% i.e., 78.6%.  And this is a very important point that I have explained to course subscribers because a shallow wave c often is a harbinger that a strong impulse is resuming.

Having analyzed that the stock is in wave 3 in a weekly time frame and identifying high probability Set Up 1 Buy on a daily time frame, the member waited for the confirmation to take position. 

Set Up 1 Buy is basically a trend following model which I have covered in a great detail in a course “Waves Of Wealth”. The Set Up aims to capture wave 5 move and the following few examples are the testimony that how strong a set up is.

GNFC:  Elliott Wave Analysis – Dev Advisory – Stock Market Educational Institute

KPR Mills: How Wave Principle helped “Waves Of Wealth” member capture 25% move – Dev Advisory – Stock Market Educational Institute

Bajaj Electricals: Elliott Wave Analysis of Bajaj Electricals – Dev Advisory – Stock Market Educational Institute

Recent Trades : Trade Set Up: A Pathway To Be Consistently Profitable Trader – Dev Advisory – Stock Market Educational Institute

Nifty Realty Index: Nifty Realty: Elliott Wave Analysis – Dev Advisory – Stock Market Educational Institute

Shilpa Medicare: Shilpa Medicare: How Wave Principle helped to capture 10% move – Dev Advisory – Stock Market Educational Institute 

Apart from these case studies, the following YouTube Videos may help to gauge the accuracy of the Set Up 1.

Info Edge: Elliott Wave Analysis of Info Edge: Learn To Plan a Trade. – YouTube

DLF & Natco Pharma: Elliott Wave Analysis: Natco Pharma, RBL Bank & DLF – YouTube

Gail, Gold & Torrent Power: Elliott Wave Trade Set Ups: Gail, Torrent Power & Gold – YouTube

Entry & Stop Loss:

In a course “Waves Of Wealth” I have explained few tools and techniques to be reasonably sure that wave 4 correction might be over and also to refine the entry. And one of the them is DMA which helps in refining the entry. So the member waited for DMA confirmation for entry and on September 2, 2021 the stock managed to close above DMA lines. The next day stock gapped up and crossed the high of wave b which were again strong evidences that wave 4 correction was over. Hence member took long position in stock at an average price of 175. The initial SL was 148 just under wave 4 low. (See below daily chart)

Logical Targets:

As mentioned in the beginning stock is in wave 3 as per weekly time frame, and common extension levels of wave 3 are 1.618-.175 which gives logical targets around 249-261. (See below weekly chart)

However, on a daily the member traded for wave 5 rally of wave 3 of a weekly. The common extension levels of wave 5 are 0.380/0.5 and 0.618 of the distance 0-3. (See below daily chart)

So as per the Daily Set Up 1 Buy the stock has achieved all the TGTs. However as per weekly still there is an upside potential. The member has booked some profits when the stock moved 20% from the entry and still holding partial positions with trail SL of 175. Alternatively, member has planned to exit if the price closes below DMA lines.

This is how Wave Principle helps to design an objective Trading Plan. The online Elliott Wave Course “Waves Of Wealth” is 100% practical and comprehensive course divided into different Trade Set Ups. Each and every Trade Set up is explained in great details using real world examples. These Trade Set Ups can be traded across all time frames from 5 mins to daily to weekly and monthly. 

The course access and support is lifetime. Besides you get access to the Premium Contents at no additional cost. Real time Trade Set Ups are discussed with course subscribers on a regular basis which not only help them to refine what they are learning but also to make money by taking positions on such high probability Trade Set Ups.

The goal of this practical course is not to make you an expert Elliott Wave Analyst but an expert Elliott Wave Trader.

So go ahead and join the course right away to take your trading and investing to the next level.

Join here: Cart – Dev Advisory – Stock Market Educational Institute

I will see you inside the course.