Diametric pattern – Understanding Nifty medium term pattern by applying the concept of Advanced Elliott wave – Neo wave theory to forecast the next trend.
As shown on daily chart, prices are forming a Diametric pattern. This pattern is recognised in Neo wave as a 7 legged correction labelled as a-b-c-c-d-e-f-g and can take a form of either Bow Tie structure or a Diamond shaped structure.
In the above chart we can see a bow tie shaped Diametric pattern.
Each legs are corrective and we are currently in wave f. As of now it is too early to conclude that the entire wave e is over and a major top is formed but it definitely indicates that until the recent high is crossed its time to be cautious.
Trust me there will be many trades where you will gain and lose little but only a few big trades will make up for all the hard work and efforts that are put in.
So what is the next big trend and how to capitalize on the ongoing move?
If Recent highs near 22800 remains intact and we break 22300 (White lines) decisively then a major fall of 1000-1500 points cannot be ruled out.
Best part is fall can be temporary in nature as bears attack swift, do the job in few days and then sleep.
Once wave f low is placed where many will panic, wave g can take nifty towards sub 24k levels.
But if we fail to break 22300 decisively and break 22800 on upside this anticipated fall may get delayed futher and may come in later half of the year.
As shown on daily chart, prices are forming a Diametric pattern. This pattern is recognised in Neo wave as a 7 legged correction labelled as a-b-c-c-d-e-f-g and can take a form of either Bow Tie structure or a Diamond shaped structure.
In the above chart we can see a bow tie shaped Diametric pattern.
Each legs are corrective and we are currently in wave f. As of now it is too early to conclude that the entire wave e is over and a major top is formed but it definitely indicates that until the recent high is crossed its time to be cautious.
Trust me there will be many trades where you will gain and lose little but only a few big trades will make up for all the hard work and efforts that are put in.
So what is the next big trend and how to capitalize on the ongoing move?
If Recent highs near 22800 remains intact and we break 22300 (White lines) decisively then a major fall of 1000-1500 points cannot be ruled out.
Best part is fall can be temporary in nature as bears attack swift, do the job in few days and then sleep.
Once wave f low is placed where many will panic, wave g can take nifty towards sub 24k levels.
But if we fail to break 22300 decisively and break 22800 on upside this anticipated fall may get delayed futher and may come in later half of the year.
Trade closed manually:
22500 to 22100
This pattern may get delayed till late june.
As per EW pattern on hourly charts one more leg on upside can play out after which we can fall in wave f from highs.
This pattern may get delayed till late june.
As per EW pattern on hourly charts one more leg on upside can play out after which we can fall in wave f from highs.