Hemant Kale The Magic Logic Of Elliott Wavesrar __EXCLUSIVE__
Hemant Kale The Magic Logic Of Elliott Wavesrar: A Review
If you are interested in learning the Elliott Wave Theory and how to apply it to the financial markets, you might want to check out Hemant Kale's book, The Magic Logic Of Elliott Wavesrar. This book is a comprehensive and practical guide to the Elliott Wave Principle, a method of technical analysis that uses wave patterns to forecast market trends and cycles. In this article, we will review Hemant Kale's book and see what it has to offer.
Hemant Kale The Magic Logic Of Elliott Wavesrar
Who is Hemant Kale?
Hemant Kale is a professional trader and analyst who has been using the Elliott Wave Theory for over 20 years. He is also a certified Elliott Wave Analyst by the International Federation of Technical Analysts (IFTA) and a member of the Market Technicians Association (MTA). He has written several articles and books on the Elliott Wave Theory, such as The Magic Logic Of Elliott Wavesrar, The Magic Logic Of Elliott Waves Part 2, and The Magic Logic Of Elliott Waves Part 3. He also runs a website and a blog where he shares his insights and analysis on the markets using the Elliott Wave Theory.
What is the Elliott Wave Theory?
The Elliott Wave Theory is a form of technical analysis that was developed by Ralph Nelson Elliott in the 1930s. It is based on the idea that market movements are not random, but rather follow predictable patterns that reflect the collective psychology of investors. These patterns are called waves, and they can be identified and measured on any time frame and any market.
The Elliott Wave Theory states that market movements consist of two types of waves: impulse waves and corrective waves. Impulse waves are waves that move in the direction of the main trend, while corrective waves are waves that move against the main trend. Impulse waves are subdivided into five smaller waves, labeled 1, 2, 3, 4, and 5. Corrective waves are subdivided into three smaller waves, labeled A, B, and C.
The basic pattern of the Elliott Wave Theory is that an impulse wave is followed by a corrective wave, and then another impulse wave in the same direction as the first one. This cycle repeats itself at different degrees of magnitude, creating a fractal structure of waves within waves. The Elliott Wave Theory also provides rules and guidelines for identifying and counting the waves, as well as predicting their future direction and targets.
What is The Magic Logic Of Elliott Wavesrar?
The Magic Logic Of Elliott Wavesrar is a book by Hemant Kale that explains the Elliott Wave Theory in detail and shows how to apply it to the financial markets. The book covers the following topics:
The history and philosophy of the Elliott Wave Theory
The basic concepts and principles of the Elliott Wave Theory
The rules and guidelines for identifying and counting the waves
The common wave patterns and formations
The Fibonacci ratios and retracements that relate to the wave structure
The time cycles and indicators that complement the wave analysis
The practical examples and case studies of applying the wave analysis to various markets
The tips and tricks for improving your wave analysis skills
The common mistakes and pitfalls to avoid when using the wave analysis
The book is written in a clear and simple language, with plenty of charts and illustrations to help you understand the concepts. The book also provides exercises and quizzes at the end of each chapter to test your knowledge and reinforce your learning. The book is suitable for beginners as well as advanced traders who want to learn or improve their wave analysis skills.
What are Fibonacci Ratios?
Fibonacci ratios are mathematical proportions that are derived from the Fibonacci sequence, a series of numbers that starts with 0 and 1 and continues by adding the previous two numbers. For example, 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, and so on. The Fibonacci sequence has many applications in mathematics, nature, art, and science.
The Fibonacci ratios are obtained by dividing one number in the sequence by another number in the sequence. For example, dividing 8 by 13 gives 0.615, which is approximately equal to 0.618. This ratio is called the golden ratio or phi, and it is considered to be the most aesthetically pleasing proportion in nature and art. Other common Fibonacci ratios are 0.382, 0.5, 1.618, 2.618, and so on.
The Fibonacci ratios are also used in technical analysis as a tool to measure the retracements and extensions of the waves. A retracement is a corrective wave that moves against the main trend, while an extension is an impulse wave that moves beyond the end of the previous impulse wave. The Fibonacci ratios indicate the potential levels where the retracements and extensions can reverse or continue.
For example, a common retracement level is 0.618, which means that a corrective wave can retrace up to 61.8% of the previous impulse wave before resuming the main trend. A common extension level is 1.618, which means that an impulse wave can extend up to 161.8% of the previous impulse wave before correcting or reversing.
How to Use Fibonacci Ratios in Wave Analysis?
To use Fibonacci ratios in wave analysis, you need to identify the waves and their subdivisions on a chart and then use a Fibonacci tool to draw the retracement and extension levels. The Fibonacci tool can be found in most charting software and platforms.
To draw the retracement levels, you need to select two points on the chart that represent the beginning and end of an impulse wave. The Fibonacci tool will then draw horizontal lines at the retracement levels based on the Fibonacci ratios. For example, if you select point A as the beginning of an impulse wave and point B as the end of an impulse wave, the Fibonacci tool will draw lines at 0%, 23.6%, 38.2%, 50%, 61.8%, and 100% of the distance between point A and point B.
To draw the extension levels, you need to select three points on the chart that represent the beginning and end of an impulse wave and the end of its subsequent corrective wave. The Fibonacci tool will then draw horizontal lines at the extension levels based on the Fibonacci ratios. For example, if you select point A as the beginning of an impulse wave, point B as the end of an impulse wave, and point C as the end of its subsequent corrective wave, the Fibonacci tool will draw lines at -23.6%, -38.2%, -50%, -61.8%, -100%, -161.8%, and -261.8% of the distance between point A and point B projected from point C.
The retracement and extension levels can help you to anticipate where the waves can reverse or continue their direction. For example, if you see that a corrective wave is approaching a retracement level such as 0.618 or a support or resistance level on the chart, you can expect that it might bounce back or break through depending on the strength of the trend and other factors. Similarly, if you see that an impulse wave is approaching an extension level such as 1.618 or a support or resistance level on the chart, you can expect that it might reverse or continue depending on the strength of the trend and other factors.
What are Some Examples of Using Fibonacci Ratios in Wave Analysis?
To illustrate how to use Fibonacci ratios in wave analysis, let us look at some examples from different markets and time frames. We will use the Fibonacci tool to draw the retracement and extension levels and analyze the wave patterns and movements.
Example 1: EUR/USD Daily Chart
The following chart shows the EUR/USD currency pair on a daily time frame from January 2020 to May 2021. We can see that the pair was in a downtrend from February 2020 to March 2020, followed by an uptrend from March 2020 to January 2021, and then a downtrend again from January 2021 to May 2021.
We can apply the Elliott Wave Theory to identify and label the waves and their subdivisions on the chart. We can see that the downtrend from February 2020 to March 2020 was an impulse wave labeled as wave (1), followed by a corrective wave labeled as wave (2) that retraced up to the 0.618 Fibonacci level of wave (1). Then, the uptrend from March 2020 to January 2021 was another impulse wave labeled as wave (3), followed by a corrective wave labeled as wave (4) that retraced up to the 0.382 Fibonacci level of wave (3). Finally, the downtrend from January 2021 to May 2021 was another impulse wave labeled as wave (5), followed by a corrective wave labeled as wave (A) that retraced up to the 0.382 Fibonacci level of wave (5).
We can also use the Fibonacci tool to draw the extension levels and predict where the waves can end or continue. For example, we can see that wave (3) extended up to the 1.618 Fibonacci level of wave (1), which is a common extension level for an impulse wave. We can also see that wave (5) extended up to the -0.618 Fibonacci level of wave (4), which is another common extension level for an impulse wave. We can also see that wave (A) extended up to the -0.382 Fibonacci level of wave (5), which is a common extension level for a corrective wave.
By using the Fibonacci ratios in wave analysis, we can gain more insight into the market movements and anticipate where the waves can reverse or continue their direction.
Example 2: S&P 500 Weekly Chart
The following chart shows the S&P 500 index on a weekly time frame from January 2018 to May 2021. We can see that the index was in an uptrend from January 2018 to February 2020, followed by a downtrend from February 2020 to March 2020, and then an uptrend again from March 2020 to May 2021.
We can apply the Elliott Wave Theory to identify and label the waves and their subdivisions on the chart. We can see that the uptrend from January 2018 to February 2020 was an impulse wave labeled as wave (1), followed by a corrective wave labeled as wave (2) that retraced up to the 0.382 Fibonacci level of wave (1). Then, the downtrend from February 2020 to March 2020 was another impulse wave labeled as wave (3), followed by a corrective wave labeled as wave (4) that retraced up to the 0.618 Fibonacci level of wave (3). Finally, the uptrend from March 2020 to May 2021 was another impulse wave labeled as wave (5), followed by a corrective wave labeled as wave (A) that retraced up to the 0.382 Fibonacci level of wave (5).
We can also use the Fibonacci tool to draw the extension levels and predict where the waves can end or continue. For example, we can see that wave (3) extended down to the -1.618 Fibonacci level of wave (1), which is a common extension level for an impulse wave. We can also see that wave (5) extended up to the -2.618 Fibonacci level of wave (4), which is another common extension level for an impulse wave. We can also see that wave (A) extended up to the -0.382 Fibonacci level of wave (5), which is a common extension level for a corrective wave.
By using the Fibonacci ratios in wave analysis, we can gain more insight into the market movements and anticipate where the waves can reverse or continue their direction.
Conclusion
Hemant Kale The Magic Logic Of Elliott Wavesrar is a book that explains the Elliott Wave Theory and how to apply it to the financial markets. The book covers the history and philosophy of the Elliott Wave Theory, the basic concepts and principles, the rules and guidelines, the common wave patterns and formations, the Fibonacci ratios and retracements, the time cycles and indicators, the practical examples and case studies, the tips and tricks, and the common mistakes and pitfalls. The book is written in a clear and simple language, with plenty of charts and illustrations. The book also provides exercises and quizzes at the end of each chapter to test your knowledge and reinforce your learning. The book is suitable for beginners as well as advanced traders who want to learn or improve their wave analysis skills.
In this article, we have reviewed Hemant Kale's book and seen what it has to offer. We have also explained what are Fibonacci ratios and how to use them in wave analysis. We have also shown some examples of using Fibonacci ratios in wave analysis from different markets and time frames. We hope you have found this article helpful and informative. If you have any questions, suggestions or feedback, you can contact Hemant Kale by email or by visiting his website. You can also share this article with your friends by using the social media buttons below. Thank you for reading and have a nice day! d282676c82