Nikkei’s 4 Hour Elliott Wave Diagonal

Nikkei has been rallying since April 2014′s low of 13800 in a diagonal. Diagonal is a five swing move with the convergence of boundary lines into a wedge shape. The subdivisions can be either 5-3-5-3-5 or 3-3-3-3-3. Ending Diagonals consist of 3-3-3-3-3 whereas Leading Diagonals can be either 5-3-5-3-5 or 3-3-3-3-3. In the case study below, we would be looking at a diagonal with sub-divisions of 3-3-3-3-3

Let’s take a look at the general structure of a leading diagonal below


Now let’s take a look at Nikkei’s 4 hour chart below


Wave 1 is complete at 14,643.

Wave 2 is complete at 13,889

Wave 3 is complete at 15,200

Wave 4 is complete at 14,843

Wave 5 is complete at 15,780

In each wave, the subdivision is in 3 waves as shown on the chart. We’ve warned our members everyday through our live session and 24 hour chatroom that global indices are close to forming a temporary top. Nikkei has followed our path, and start to correct the 5 wave moves.

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Hendra Lau – Technical Analyst at Elliott Wave Forecast