Thread by @JustNifty

Most are correcting yesterday's low to today's opening high.
Keep the retrace handy
38%-50% retrace is bullish
61.8% is average strength
Anything beyond it, reject it and reconsider only if the high is surpassed
For Eg: Nifty holding "17855-892" is bullish

Break of 17817, reject

#Reliance has done exactly 61.8% retrace of 2494 to 2556 @ 2518

Today's low 2518.
Below this, wouldn't consider it.
IF breaks 2518, consider it only above 2545 or 2556

#sbin
Rose from 501 to 522
It's retrace is @ 511.50 -514, a bullish possibility.
Made a low of 513.60 so far.
Below 509, reject it.
And, consider it only if moves above 522.

#Icicibank
Moved up from 793 to 810 (Last rise)
It's 38% - 50% retrace @ 801.50-803.50, made a low today @ 802.35 = Bullish.
Reject it if breaks 799 & then, consider it only IF moves above 810.

What is all this logic ?

#Elliottwave IF taught me 1 major deciding factor is
"Managing positions with Last Rise retrace"
Most did a 5 from yesterday's low to today's opening high.
5 is retraced by a 3 (abc)
Look to enter @ retrace to get a LRHR trade

Nature of retrace or the correction reveals a lot about the strength/ weakness of the stock/ index

There could be minor whipsaw @ golden ratio, 61.8%

Nothing is perfect. Manage this whipsaw with 80% retrace no

Try & practice it & see for yourself the efficiency of this system

#Nifty retraced to 17872 so far & now @ 17910++
#Reliance fell more than 61.8% but not below 80% so far @ 2508
#SBI retraced to 512.05 & mow moving up
#Icicibank retraced to 61.8% @ 799 & up now.