Elliot's Impulse waves.(Part-5)
IMPULSE WAVES :- The Basics Waves that move the market in the direction of its main trend either up or down are called Impulse waves. 1....
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5010-5039 supply zone proved a ST resistance. 5002 proved a break down point. 4945 to 4982 proved a corrective rise, monitored with an ...
4 comments:
nifty in strong downtrend break of 4450 will take us to 4350. not good to buy now.
Hi..Rakesh,
This trade set up was for a short term of, say 2 days, as per my perceived EW analysis as well as a minor +ve div in 5 minute charts.
And the SL was quite close by. A loss of 15 points.
On Thursday, a trade was initiated in the "Aggressive trade" @ 4595 with a SL 4630 based on a fibo retracement of 61.82% for the fall from 4727 to 4359 and it has turned out well.
http://tradeinniftyonly.blogspot.com/2009/08/nifty-intraday-update_13.html
In conservative trade, the short is still on which is based on 5 day swing.
Sometimes we combine a few criteria to arrive at a trade set up.
Nifty is yet to confirm a strong down trend.
Criteria.1: Close below 5-week avg & break of 2-week low.(4360)
Criteria.2: Since the fall from the highest point of 4727, a swing low of 4359 established. Breaking down below 4359 is the next signal.
Criteria.3: The above are short term trend reversals. For medium term, last swing low is 3920.
In summary, Nifty is either consolidating between 4000 - 4700 before a move up or distributing at the tops before heading lower.
Within the immediate band of 4360 - 4727, sell higher & buy lower and trade the breakout direction.
Best regards.
ilango
sir...we are back to the recent swing low of around 4360 levels...can this be seen as a range expansion from the recent 200 pt range for past 5 days..also we had Lower highs(around 4620) and now( mostly tom) we will have a lower low...this pattern looks quite bearish...but i see some +ve div on hourly
Hi..Shaq,
We had a 5 down from 4727 to 4360. And we retraced roughly 69%(Between 62% & 76.4%).Now again we seem to have fallen in a 5 waves from 4613 to 4379. So Sell on a retracement (May not retrace so much).As hourly is oversold, a bounce may happen.
Conservative sell is still on.
Best regards.
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