SYNOPSIS Title of the project:- Technical Analysis Using Elliott Wave

Submitted by :- Rinkesh Jain, Roll no:- 201058, A div, SEM IV

Project guide :- Prof Rashmi Jain

Year of submission :- 2012

General Introduction of the project The Elliott Wave Principle is a form of technical analysis that some traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors. Ralph Nelson Elliott (18711948), a professional accountant, discovered the underlying social principles and developed the analytical tools in the 1930s. He proposed that market prices unfold in specific patterns, which practitioners today call Elliott waves, or simply waves

Objectives of study y y y y To understand the concept of Elliot wave. To forecast the trend of the market. To understand the changing trend of the Equity Market. To improve the profitability of the traders.

Scope of Study

y To study the concept, features and applicability of the Elliot wave in the Equity Market. y Will help to understand the trend of the market.

Abstracts (Elliott Wave Principle)

The physicist Didier Sornette, visiting professor at the Department of Earth and Space Science and the Institute of Geophysics and Planetary Physics at UCLA. In a paper he co-authored in 1996 ("Stock Market Crashes, Precursors and Replicas") Sornette said, It is intriguing that the log-periodic structures documented here bear some similarity with the "Elliott waves" of technical analysis ... A lot of effort has been developed in finance both by academic and trading institutions and more recently by physicists (using some of their statistical tools developed to deal with complex times series) to analyze past data to get information on the future. The 'Elliott wave' technique is probably the most famous in this field. We speculate that the "Elliott waves", so strongly rooted in the financial analysts folklore, could be a signature of an underlying critical structure of the stock market. ( http://en.wikipedia.org/wiki/Elliott_Wave_Principle) Paul Tudor Jones, the billionaire commodity trader, calls Prechter and Frost's standard text on Elliott "a classic," and one of "the four Bibles of the business": [Magee and Edwards'] Technical Analysis of Stock Trends and The Elliott Wave Theorist both give very specific and systematic ways to approach developing great reward/risk ratios for entering into a business contract with the marketplace, which is what every trade should be if properly and thoughtfully executed.(http://en.wikipedia.org/wiki/Elliott_Wave_Principle)

Research Methodology

SOP: Elliot Wave is one of the best tool to understand the trend of the Market. Methods of Collection of data: Secondary data from website and financial journals Research Instrument: Odin Diet(Share khan Software) Research Limitation: Lack of primary data. Methods of Collection of data: Secondary data from website and financial journals Data Analysis and interpretation and Findings Conclusion Recommendations Annexure Appendices / Glossary Bibliography: 1) http://www.elliottwave.com 2)Mastering Elliott Wave by Glenn Neely(1990) Windsor book 3)http://www.investopedia.com/university/advancedwave/# axzz1lzLjTN4m