# Research report: flat correction (real-time) - Support Zone.

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NSE:HCLTECH   HCL TECHNOLOGIES
In this "Research Report" we're going to be looking at the "Flat correction". As you know, with respect to the Wave Principle, there are three types of Corrections.

1. Zigzag
2. Flat and,
3, Triangle

We're going to examine the Flat now. The first thing that's important about this pattern here is being able to identify its characteristics.
First is, its substructure. What I'm referring to is if you notice within "A" wave, we have three waves ((A)), ((B)) and ((C)). Then, also within "B" wave be 3 more waves, ((A)), ((B)) and ((C)). These waves are labelled "A", "B", "C" and, then that followed by a 5 wave move 1,2,3,4 and 5 which is an impulse wave and sometimes an ending diagonal bottom line. The pattern is referred to as a 3-3-5 pattern. That's one characteristic of the structure.

Another characteristic of the structure is that wave "B" at or near the origin wave "A". The wave " C" is at or near extreme wave A. In rare instances, the wave "B" is surpass origin of wave "A" which is referred as an "Expanded Flat". But we're not talking about "Expanded flat" right now.

Now the next thing I would like to show you with respect this pattern. Here's a price chart of HCLTECH which real time price chart rather than utilizing diagram.

This is what I see when I label price chart three ways in A, B & C and wave "B" is near Origin wave "A" which dawned blue line.Okay.Next, For HCLTECH, impulse wave "C" which ends at or near the extreme wave "A". In this instance we actually went a little bit lower , typically with respect to wave.

The relationships have either wave C=A or 1.382 multiples of wave are very acceptable.

wave C = 1.382 of wave A, at 963
C = wave A, at 1073

Next we also need to take a look at Art of correct "Price Channel". How do we actually draw the trend lines that consists or make up the correct price channel whenever you're working with a flat correction? Very simply, you begin with the at the origin wave "A" to the extreme of sub-wave 2 of "C" and then take a parallel of that line of the extreme wave "A". Notice how in HCLTECH identifies nice trend line support for the extreme of Waves C.

Comment:
The important key support from previous resistance 1067 and 1055.

Another, key support from fib. retracement at 1077.5
Comment:
I'm going to look at how combining 2 traditional chart patterns together actually forms one pattern that I refer 1-2 punch. The reason why is because that 1-2 punch often leads to significant moves in price. Now, the 2 traditional chart patterns I'm referring to are the "Double Top" and a "Head and Shoulder" Pattern.
In HCLTECH, we have a Double Top.

We have a "Double Top". That's part 1: 4-hour 1/2 punch, Part:2 comes into play whenever you look at the smaller timeframe.
You can see here 30min timeframe a "Head and Shoulder. Notice we came down on the break of the neckline with Gap down and Theatrical Sell-Off in price. This is the 12 punch again to combination of the double top and then the right head and shoulders formation.