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.



My Notes

Ending Diagonal:

It is an motive wave , having 5 arms ( 3 3 3 3 3 ) each . If we draw a trendline then we get two converging trendlines . Sw 4 overlaps Sw1 .

It is said that ED are found at termination point of larger pattern , Indicating exhustion in the current trend.
Throw overs are also seen in the ED , where prices shoot out of upper trendline and retrace back to the channel and further breaking the lower trendline . After the completion of ED prices usually sharply retrace to the begining of the Triangle.
5th Wave xtension , truncation , Or ED all imply Dramatic reversal ahead .

Some indications to be kept in mind for spotting an ED .  
Sir says The slowness in the current fall which is contrary to a "swift vth wave" compels us to look for other alternatives and we found an "ending diagonal in vth wave".
It means each fall will be lesser than the previous one and each rise too smaller than the previous one with the channel lines converging/ narrowing into a smaller range and finally the break-out of this narrowing channel top.
If we assume that the ending diagonal started @ 5168, then the first part of the fall ended @ 4758(410 points) ; then a rise to 5034(276 points-67%) and now this latest fall should not be more than 410 points(5034-410=4624) and preferably 80% of the previous fall which is (5034-328=4706). Once this fall is over, if not done already, a 61.8% to 80% of retracing upmove will unfold
+ve divergence supports this
Triangles as corrective wave s

Page 51 frost and pretcher says usually Triangles occur prior to the last wave in one higher degree pattern
as in wave B of ABC
or even wave X of WXY
or XX of WXY(-XXZ) 
or W4 in an Impulse
Triangles always take time to develop .
last leg "e" can itself present as a triangle giving it a 9 wave .
 
 
MACD ( 5 34 5)
 
In rising market ,
Wave A end = lowest reading on macd , below zero line. This also confirms that 5 waves up have ended.
 
Wave B = macd rises above zero but below the reading of w5.
 
Wave C = dips below zero line again , but with a +ve divergence , with price posting a new low but macd does not .
 
Wave 1 = macd risies again above zero , followed by
 
Wave 2 where in it dips below zero again but not below the lvl at C.
Wave 3 macd posts a new high with prices posting a new high as well over the point posted by wave B
 

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