a) It respected the range of 10870-11150 moving up and down with a downward bias.
b) The typical behaviour of 4th wave, as the trader does not know it will move up or down, is clearly visible.
c) The chart shows first and the events unfold later.
d) The first signal got out of Histogram and the second signal entered inside and ready to get out.
What is NOT mentioned last week and observed later is :
1. Lat Friday was an FA and exactly at T+5 days it revisited the last Friday low.
2. In the process an pattern is developing or already completed.
On Thursday there was a chance of the 2 c/o of 5 but it was a bull trap as the 2nd signal was inside histogram.
Now what seems probable is by Monday or Wednesday the 2nd signal will be out of Histogram and the 1st signal should
start moving towards the 2nd signal giving bias but not at a very fast pace. In the event this happens then by the
time both the signals reaching converging stage, the Nifty -0.43% should move upto 11480-11550 area, which was marked
in the last week chart as the negation point for the correction.
When the signals c/o, the histograms open above 0 and the 2 closes of price above 5 can happen
simultaneously which will signal for the end of correction and a new wave starts.
The chances of visiting 10500-600 area reduced to 10% now but still not ruled out. The range for the next week could
be 10850 to 11380 with a bias. Any close below 10820 negates this range.
Above view is for purely educational purpose and may not be good for trades. No trades are recommended or advised on the above views. Please consult your Financial Advisors before taking any trade.
Good question. Until it crosses B wave high it is always in 4th wave. Invarably when macd signal c/o price should reach near B high.
Inverted cup handle to be made and sometimes it is a very small affair and starts moving up. It is not necessary that it should visit the low again.