LALPATHLAB - EW & Technical Classical 4th wave on Channel Setup
Updated
CMP: 3095
While combining EW with technical patterns, the general guideline is that
Wave 3 must breakout above the 0-1-2 channel
Wave 4 must take support at the 0-1-2 channel top or at the midpoint
In this chart, price complied both the technical requirements for wave 3 (breakout and runaway).. and then retest the channel top to complete the 4th.
More details on trade set up for this script is described in a separate analysis..
Sharing this as a new post to help understand how EW and Technical patterns work together
While combining EW with technical patterns, the general guideline is that
Wave 3 must breakout above the 0-1-2 channel
Wave 4 must take support at the 0-1-2 channel top or at the midpoint
In this chart, price complied both the technical requirements for wave 3 (breakout and runaway).. and then retest the channel top to complete the 4th.
More details on trade set up for this script is described in a separate analysis..
Sharing this as a new post to help understand how EW and Technical patterns work together
Trade active
Looks like the price would make one more low between 2800-2700.. Since this is the 5th wave, we never know where will it end.. better to wait and watch for reversal at the previous resistance/breakout zone of 2700 levels
I am not a SEBI Registered Analyst. Views are personal and for Education purpose only. Please consult your Financial Analyst before making investment decision
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