In our last post we were expecting a pause to this sharp rise in Dollar against the Rupee. On the lower fractals our wave count fell short of what we were expecting. So today's rise in INR suggests the onset of wave [4]. This consolidation has given the fillip to the Nifty, as expected. Now the possible range for this wave [4] comes in the range of 55.30 to 54.00 range. So good for equities and INR, and a pause for Dollar in coming days. This is a unique feature of EWP, even if you are caught off guard you can put the market action in perspective, and be ready for the next leg of market movement.
Aniruddha,
ReplyDeleteA question I am stuck with -
If the 4th wave of some move takes the form of a Contracting Triangle, how do I measure the 5th? From the lowest point (A) or the end of the Triangle, (E)?
I know, it is a basic question. But I am a novice too and stuck badly...
Well Fire sir I am aware of your capabilities, but we can share our know how with each other.
DeleteAccording to Prechter the Fibonacci relationships should be applied always from the orthodox end points of any pattern, so even if wave '4' lowest point has to be the end of wave 'a' the Fibonacci targets for wave '5' should always be measured from the orthodox end point of the contracting triangle i.e. end of wave 'e'.
I would also share my way of tackling this problem, I measure the targets for wave '5', from waves 'a','c','e' of wave '4', and get a fair idea of the region where wave '5' might end (of course when wave '5' is not extended).
Regards
Aniruddha