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| Hourly EW Chart |
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| Hourly Fibonacci Chart |
Nifty came down today and took out the low of wave {4}in 5 waves. There are a couple of possibilities, discussed here. Either we may form a flat with wave (a) around 5300. But if we break this level we may go further down to 5210 - 5230 levels. I have marked important support and resistance levels, and fibonacci levels as well for clearer understanding.
We can see that wave [3] is 300% of wave [1], now we can expect a wave [4]. Channeling technique of EWP gives target around 5200 levels.
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| Hourly Support and Resistance Chart |
In this chart red lines show support and resistance levels, and blue line show resistance. We can short with a stop loss of 5400, with targets around 5200 levels, and below that 5100 - 5075 levels.
Hi Aniruddha nice work,
ReplyDeleteOne very interesting fact for ur further thought,
In extended W3s
W3=1.618x(W1+W5) & w1=w5 , generally
So far we have done:
w1 4531 4801 270
w2 4801 4588 -213 -79%
w3 4588 5423 835 309%
If we co-relate with the formula fo Ext. w3 & assume w5 will do = w1, then,
Ext w3 = 1.618 X(270 + 270) = 874 pts --> v close to 835 which we have done thus far!!
Point II.
If we are to AVOID TRUNCATION of 5th waves..
W4 has to be < 270 pts, (coz w5=w1=270 pts)
Wot this means is max w4 = 269 pts, i.e to 5154
Point III
Even if W4 end ABOVE 5154, we may still witness WAVE TRUNCATION of 5th (in very strong trends wid extn 3, 5th can be truncated...
SUMMARY :
1. One can TRAIL SHORTS to 5170-195 BAND (historic SUPPORT/RES BAND)
2. One must be PREPARED to expect 5460 to OFFER STIFF RES (in the event of truncated 5th!)
Real Nice, too cool infact, thanks for the insights from the EW charts :-)
cheers
SMO
Your analysis is good, but only thing that I found new in your analysis was the formula for wave 3, I have not seen it earlier. Otherwise the analysis and inferences are informative.
ReplyDeleteHI ON WAVE THEORY SOME ONE TOLD 7700 TILL JUNE 2013. IS IT POSSIBLE ?
ReplyDeleteWell anythings possible. But wave principle is open to interpretation by all, and it is also affected by the amount of market experience of its practitioner. I am also bullish and lets see how far prices carry in what seems to be a new wave up.
DeleteHello Mr. Deshpande can you give me name of books(EWP)in which i read and learn about technically market because i'm interested for learn. So dear please provide me.
ReplyDeleteI am trading in USDINR currency mkt.
As you are trading in USDINR I suggest you read book by Robert Balan and Ramki Ramkrishnan. And of course there is the defining book on EWP by Robert Prechter.
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