WaveTalks-Nifty-The Evening Star / Wedge Collaboration

This short video explains how the evening star turns into a wedge pattern. If correct, downside 16590 was critical support, holding above Nifty could bounce back again to 16680-16700. On the upside, Holding below 16712 highs, It can attempt to fall back again to 16615-16625 & assuming that if Index falls below 16590-critical support, it can fall to 16500 / 16440 / 16400 levels
When you splash around the water, you get to hear a peculiar sound which you heard over the video at the start.

I have compared that sound of up & down in Nifty Index to water pool splash. This scenario in technical analysis is called a wedge pattern

What Is a Wedge?
A wedge is a price pattern marked by converging trend lines on a price chart. The two trend lines are drawn to connect the respective highs and lows of a price series throughout chosen periods. The lines show that the highs and the lows are either rising or falling giving the appearance of a wedge as the lines approach a convergence. Wedge-shaped trend lines are considered useful indicators of a potential reversal in price action.

Elliott Wave Analysis
These wedges are further classified as Type 1 / Type 2 diagonal (wedge). Depending on the position of the structure unfolding. They are called

(Type 1)Leading Diagonal – Start the price move

(Type 2)Ending Diagonal - End the price move


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Last Video Idea - Nifty Bearish Bat Harmonic Pattern
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08:44

Trade closed manually:

15:19 Hrs / 27th Aug2021

Last Price @ 16709

New High @ 16722

Careful at the Tops - Once Again!!!

It might have taken out recent high 16712 which Index has been doing quite often. Making New Highs but Not holding is a weak sign.

If falls & sustains below 16695 / 16700 - correction is expected. Only high-risk takers should take the trade as it is the weekend next.

Safe Traders - Plan your trades next week carefully.

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Assuming Index does not drop below 16695 then we need to review the situation later.

Thanks