in the sense, when it looks like going down it will reverse and vice versa.
Now Nifty is in a critical stage to decide the fall was a 3 wave correction or a new impulse down.
With Green Lines it is mentioned as a 3 wave correction. Here also 2 different scenarios comes up.
1. It has completed the 3 wave correction and started moving up.
2.The low of this week can be considered as a a-b-c sub sub waves in the Sub wave of A in the main wave 4.
The negation point marked in blue line and Nifty needs to give 2 closes above that line to assume correction is over.
With Red Line it is mentioned as a 5 wave impulse and Nifty can be dragged to 11000 again and in the 4th wave
anything is possible.
Now coming to the behaviour why there is vertical falls and v-shape recovery. Simple logic is "every force of action
has got an equivalent opposite reaction".
Chart if properly read can indicate the action which may happen in the future and the events unfold later. Last 2 days
upmove indicate to the 4th wave behaviour which leaves many traders spell bound with the sudden change in
directions. In the last post indicated that if wave NS can go down to 11100-200 area and NS reached 11250.
In the next couple of days we will be able to know whether it can close above the negation point or not.
Looking at the it looks like that it is not possible for the Nifty to cross the ATH immediately and it needs
2-3 days stellar moves like the last 2 days to change the complexion. Moreover the last 2 days move does not look
like new interest by the Bulls and rather it looks like the short covering by the FIIs due to the oncoming event on
The above is my personal view and only for educational purpose. Any trade taken on the above view is entirely
at individuals own risk after checking with his own system and/or his financial advisor.