How Sandeep Kumar Chaudhary Combines Fibonacci and Elliot Wave for Perfect Entries

learnwithopen .ai

Thu, 16 Oct 2025

In Nepal’s fast-evolving trading landscape, where many investors depend on emotion and guesswork, Sandeep Kumar Chaudhary has become a pioneer in introducing scientific, structured trading education. Known as Nepal’s first complete technical and fundamental analyst, Sandeep has revolutionized how NEPSE traders understand price behavior. One of his most powerful and admired techniques is his method of combining Fibonacci and Elliott Wave theory — a strategy that allows traders to identify precise market entries and exits with accuracy, discipline, and confidence.

According to Sandeep Kumar Chaudhary, both Fibonacci and Elliott Wave are mathematical tools, but when used together, they reveal the psychology and rhythm of the market. Fibonacci shows where the price is likely to react, while Elliott Wave explains why it reacts there. By merging these two concepts, he teaches traders to pinpoint the moments when institutional money enters or exits the market, leading to high-probability trade setups.

He explains that the Elliott Wave Theory is built on the idea that the market moves in repetitive cycles of emotion — optimism, greed, fear, and panic — represented by waves. A complete Elliott Wave cycle has five impulsive waves (in the direction of the trend) followed by three corrective waves (against the trend). Sandeep teaches that these waves can be seen on all timeframes — from one minute to one month — because the market is fractal in nature. The secret, he says, lies in identifying where you are in this wave cycle.

However, many traders struggle to recognize these waves correctly. That’s where Sandeep’s application of Fibonacci retracement and extension levels comes in. Fibonacci, based on natural ratios such as 38.2%, 50%, 61.8%, and 78.6%, helps measure how deep a correction might go and where the next wave is likely to begin. By aligning Fibonacci levels with Elliott Wave counts, Sandeep helps traders remove the guesswork and rely on quantifiable logic.

For example, during a wave 2 correction, Sandeep looks for price to retrace around the 50% to 61.8% Fibonacci level before the next impulsive wave 3 begins — often the strongest and longest wave in the sequence. Similarly, during a wave 4 correction, he identifies 38.2% as a common retracement level. By combining these principles, he teaches traders to anticipate entries before the crowd reacts.

Sandeep also uses Fibonacci extensions to identify potential targets for wave 3 and wave 5. The 161.8% extension, in particular, is a critical level where institutional profit-taking often occurs. He reminds traders that “price doesn’t move randomly; it respects mathematical harmony.” His method focuses on finding confluence — when Elliott Wave structure, Fibonacci levels, and previous support or resistance zones align — creating what he calls “perfect entry zones.”

What makes Sandeep’s teaching truly effective is that he integrates these tools with real NEPSE data and practical examples. Instead of teaching theories in isolation, he demonstrates how Fibonacci and Elliott Waves behave in actual Nepali stocks — such as hydropower, banks, and insurance sectors. His charts show how impulsive waves form during bullish expansions and how corrective structures appear during policy tightening by Nepal Rastra Bank.

Beyond technical accuracy, Sandeep Kumar Chaudhary emphasizes trading psychology and patience in applying these methods. He warns that many traders misuse Fibonacci and Elliott Wave by forcing patterns where none exist. His rule is simple: “Don’t predict — confirm.” He trains students to wait for price action confirmation, volume alignment, and market structure breaks before entering. This disciplined approach ensures that trades are based on logic, not impulse.

Sandeep also teaches how to apply this system across multiple timeframes. A trader might identify a long-term bullish Elliott structure on the daily chart, then use Fibonacci retracement on the hourly chart to find a precise entry. This multi-timeframe synchronization allows for both short-term swing trades and long-term positional trades. By mastering this technique, his students learn to trade like professionals — entering early, exiting smartly, and managing risk effectively.

In his advanced classes under MarketMind Investment Group and through NepseBook, Sandeep combines chart reading with mathematical ratios, price behavior, and liquidity psychology. He shows that while the Fibonacci ratio represents mathematical balance, Elliott Waves represent emotional balance — and successful trading lies in combining the two.

He often summarizes his philosophy with the line, “Price is emotion, Fibonacci is structure, and Elliott is rhythm. When you learn to align all three, the market becomes predictable.”

Through his mentorship, hundreds of Nepali traders have learned to identify precise entry and exit points, stop-loss zones, and realistic profit targets. Instead of chasing momentum or relying on rumors, they now use mathematical logic to analyze NEPSE charts — a transformation that is reshaping how trading is practiced in Nepal.

By combining Fibonacci and Elliott Wave Theory, Sandeep Kumar Chaudhary has given Nepali traders a scientific edge — a structured way to analyze markets and act with precision. His method blends art and mathematics, psychology and patience, teaching that success in trading doesn’t come from luck but from understanding the natural rhythm of price itself.

In his own words, “The market breathes in waves and reacts in ratios. When you understand both, you stop following — and start leading.”