According to Elliot Wave Theory, the low of wave 4 should be above the high of wave 1. Hence this setup is not very reliable as it violate the basic rules of wave theory. however given the exhaustion in trend, I do believe that ITC looks grim for short term.
@modi.udit11, doesn't really matter. Why? because these are not example of elliot wave theory. Ending diagonal in question is at the end of the 5th wave. When waves are themselves wrong, there is no debate around diagonal.
TradingSutra
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@shaleenbansal, Better you refer books or you can learn from us ! Thanks :) .
TradingSutra
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@shaleenbansal just posted a fresh idea on ITC. You should refer that to know, why wave 4 entering into territory of wave 1 , can be a correct interpretation. Below is the link:
shaleenbansal
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@TradingSutra, You could be very well correct. I just described what text book definition means. however, I know that in real world markets,setups that resemble the exact text book definitions are rare hence we have to improvise and there is no hardcore rule to follow. I myself shorted ITC back then and I also posted an idea about it back in the day. I along with all my group members were short on ITC from 192 to 170. You can certainly help me learn more elliot waves as that seems like your area of expertise.
TradingSutra
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@shaleenbansal, From textbook definition only , wave-4 can enter into the territory of the wave-1 in two cases : 1st is. LEADING DIAGONAL , 2nd is : ENDING DIAGONAL . thanks :)