Study of 1929 market crash using Elliott wave

Market Crash And Elliott Wave Pic

The Wave Pattern

Elliott's main discovery was that market behavior could be identified and measured through a repeating eight wave sequence, consisting of 5 waves that he called "impulsive," followed by a 3-wave "corrective" sequence.

5 WAVES UP and 3 WAVES DOWN.

SEE THE PICTURE OF 1929 CRASH IN TERMS OF ELLIOTT WAVEhttp://www.market-harmonics.com/images/Elliott%20Primer/dj2132.gif

The above chart also illustrates another of Elliott's key discoveries, namely that wave patterns themselves subdivide into smaller patterns that trend in the same direction as the wave of one larger size, or, as Elliott termed it, "degree."

In this example, the encircled wave numbers are labeled as Primary waves. The Primary waves subdivide into a five-wave sequence of Intermediate degree waves, which, in turn, subdivide into a sequence of five Minor degree waves.

A three-wave "corrective" sequence then begins from the 1929 market top and ends in July 1932, well below the start of the bull market, a loss of about 90% in the Dow's value.

Present indian markets

Is it true the sensex is at the end of 5 wave impulsive sequence? IS CORRECTIVE SEQUENCE HERE?

Await other expert comments LATER.
If it is true,then we need to get ready for 3 wave corrective sequence, a SOLID downward journey!!!!!!!!