As there is a +ve divergence in 5-Min time frame and the hourly are in the oversold region, a bounce may be expected if the Asian cues are positive.
If there is a negative cue, deeper fall may be possible.
Technically, the daily sell signal is triggered. Resistances at 3020-3050 need to be cleared on closing basis.2900-2920 area is the last hope for bulls to return for the short term.Trading below 2900-2920 may lead to faster fall to 2810-2820 area.
Needless to say, volatility will be high tomorrow.Trade carefully.
For stock pickers, Deepak's Blog has some interesting ideas.
4 comments:
Hello sir,
I have a question regarding ew ,could you plz tell when does abc-x-abc pattern normally occur and whether it can occur in intraday waves also.
Regards
Sir,
Pls guide me how to ignore false buy or sell signal in the intraday charts of nifty. Like today first green dot came at 1045 at 2990 & just after 3 green dot's again red dot's start coming. or If there is no easy way to figure out flase signal then atleast tell me how to find the direction of the market so that I either take buy signal or sell signal only.
regards,
hi..Meet,
In EW, the corrections are labelled as abc and when there is a continuation of correction due to inherent weakness or for technical reasons or for time consumption, a double three occurs which is labelled as abc-x-abc and a triple three also occurs sometimes. These labelling is done in all time frames.
I must admit, it is quite difficult to label them while they are occuring as corrections are difficult to be categorised as they happen.
I try and correlate them to macd, stochastics to identify them better.
Hi..Deepak,
we were expecting the correction to continue if the channel breaks in Hourly and the market gapped down and started to trade below the 5 ema as well as 5Dma. So we look out for selling signals and allow for intra "abc" kind of corrections which will help in avoiding whipsaws. Sometimes it is not avoidable. That is how the markets are unpredictable.
So you try and reduce your losses in such trades with proper SL. We all need to wait for the correct set up to initiate a trade and not to attempt all the moves.
The only way to approach in that fashion is to study the price patterns with some serious technical indicators of different time frames. And execute a trade...for eg.. when daily is in overbought and the hourly developing negative divergence (Like the last two days).
Best of luck.
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