This is my trading file to organise and jot down my take on the market .I do Technical Analysis. This blog is to keep track of my baby steps so that I can look back at my journey .Looking back tells me how far I have come from days when I knew nothing and can go further .It gives me motivation to keep going on even when I am tired. One has to back up trading with their own studies. The charts I post here are 99% inspired from Ilango sir.

Monday, 5 December 2011

4th wave scenario rejected

Sir says ,
Most 4th waves break the trendline briefly and then start their 5th wave. Accordingly, if you connect the 1st(5201) and 4639(suspected 3rd) and draw a parallel line from the 2nd(5317), Nifty has broken out of it 3 days ago and staying well above it. For this reason alone, the 4th wave scenario is rejected.

There are 2 possibilities:

"X" done at 5400(5382) and in the next downmove of "abc", "a" done at 4639, the "b" is on. If it exceeds 5223(80%), then the alternate view:

"X"'s abc to be read as:
a: 4720 to 5400(5382)
b: 5400 to 4639(Irregular)
c: 4639 to .....(Could clear 5223 to 5350 or 5400 & more)

Below mentioned Option 1 and Option 2 get rejected .

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