subhagghosh

#banknifty analysis for week 14th - 18th June'2021

NSE:BANKNIFTY   NIFTY BANK
#banknifty analysis for week 14th - 18th June'2021

Looks like we are in wave 5 of intermediate trend, which might be an ending diagonal wave and you might observe low volume and momentum ossicular will shart showing divergence.

Decision Line:- 34,142

Resistance:- 35,350 / 35,550 - 35,650

Support Zone :- 34,068 / 34,930 / 34,750 / 34,410 - 34,608

All long SL is 34,751

I will try to post delta updates on a daily basis or if there is any significant change in structure.

One of the best forms of PA action is not to predict but to act on the price, chart tells you where, when & how to act on price. Wait for the decision points on the chart to act else don't trade.

E.g. One of the important DP is the weekly low, if the weekly low is broken, then only you will short else you won't.

John Maynard Keynes said, “the markets can remain irrational longer than you can remain solvent.” So be cautious and flexible as market conditions evolve.

Always trade what you see, never trade what you feel. Make this a habit, you won't be requiring any seminar, webinar, or mentor, you will be self-sufficient.

#elliottwave #nse # nifty #banknifty

Regards,
SG .

Comments

last target 34,410 completed, trade dine, system closed.
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Below 35,142, pls remain short in the market and long only above 35,142 only.
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35142 , correction
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You wrote decision line : 34142. I think it should be 35142...
Please checked it.
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Small learning, for readers.
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Ending Diagonal can be converging triangle also as I explained in (Image 4), please pay attention carefully. And in ED as Converging Triangle, most of the times wave (i)>(iii)>(v). Means wave (iii) is shorter than (i) and then next wave (v) is shorter than (iii).
Whenever you are seeing wave (iii) is shorter than (i), you must expect wave (v) short than (iii). Because it is a definite rule of Elliott wave theory that wave (iii) can never be shortest wave. So, when wave (iii) is already shorter than (i) then it can never be shorter than (v). Rule of extensions or alternations is not applicable in this condition.
This condition of wave (i)>(iii)>(v) can happen in any form of Triangle (Expanding, converging or parallel) depending upon the speed of inner waves but it is mostly seen in ED as Converging Triangle.
Important facts about Ending Diagonal Triangle:
Generally you should not try to imagine Ending Diagonal Triangle in advance unless you are experienced as it is a complex pattern and can take any shape. you must wait for the completion of this pattern as it is very easy to identify when it is completed and you can plan a very good low risk high reward trading plan for reversal.
Good experienced analysts can succeed in Identifying this pattern when it is within wave (iii) after seeing repeated (abc) patterns and can catch wave (iv) and (v) very accurately point to point with the help of lines and calculations as ED has definite pattern. The same I have proved many times earlier and continue to show in future.
We often see a very sharp reversal after completion of Ending Diagonal Pattern especially when ED is a bigger wave (5) of main trend. The effect may not be so strong if ED is an inner wave (v) of bigger (3).
Summary of Ending Diagonal Triangle:

ED is always a wave (5)

ED always have 3-3-3-3-3 pattern

Wave (4) or (iv) always overlaps wave (1) or (i) in ED.

Inner wave (3) or (iii) can never be extended and inner wave (5) or (v) is extended most of the time.

ED always moves in a closed pattern either as Expanding Triangle, Converging Triangle or Parallel Wedge.

Lines of ED always drawn by joining waves (i)-(iii) and (ii)-(iv) and these lines should not be disturbed until ED is completed.

Breakout always happens from the line joining waves (ii)-(iv) after completion of ED.

We often see a sharp reversal after completion of ED.
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Structure of Ending Diagonal Triangle:
Many analysts argue that Ending Diagonal can be Converging Triangle only and some says it can be Expanding Triangle only but I observed this Ending Diagonal Triangle in all forms. ED can either be in Expanding Triangle, Converging Triangle or in Parallel Wedge form. There is no such definite rule about types of triangle, only rules and calculation must match. But, I have observed Ending Diagonal as Expanding Triangle in most of the cases and Converging Triangle or Parallel wedge in very limited cases.
All the example given above I have explained on ED as Expanding Triangle, let me give you an example of ED as Converging Triangle.
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The current chart pattern posted is Ending Diagonal , which is generally seen at wave 5 of EW.
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