wave count
Cycle-1
Primary-5
Intermediate-4
Minor-C
Minute-5
Target zone for Minor-c is shown by taking 38.2% & 50% retracement of wave-3 intermediate.
If price falls in the target zone and gives reversal candle in the form of Doji,Hammer,Bullish piercing or Bullish Engulfing followed by a close above high of reversal candle then we can assume intermediate wave 4 has ended as stock seems to have formed a support/base @ 118-120 zone,there is 50 % retracement of wave 3 @ 118.
Further wave 5 target is coming between 150(38% extention of wave 1-3 from wave 4 end)-169(61% extention of wave 1-3 from wave 4 end) if wave 4 terminates between 118-120.
Here we can see asymmetry between intermediate wave 2 and wave 4 in terms of price and time, wave 2 being shallow and short and wave 4 being dip and long.
All in all one can look for a trade setup by looking @ following factors:
1)Price approaching in identified wave target zone.
2)After price fall's in target zone one should look for reversal candle.
3)After a reversal candle on next day,once price cross's reversal candle's high one can take trade and open 30% position,if it close's above reversal candle high take rest of the position and keep a stop-loss of reversal candle low on closing basis.
Cycle-1
Primary-5
Intermediate-4
Minor-C
Minute-5
Target zone for Minor-c is shown by taking 38.2% & 50% retracement of wave-3 intermediate.
If price falls in the target zone and gives reversal candle in the form of Doji,Hammer,Bullish piercing or Bullish Engulfing followed by a close above high of reversal candle then we can assume intermediate wave 4 has ended as stock seems to have formed a support/base @ 118-120 zone,there is 50 % retracement of wave 3 @ 118.
Further wave 5 target is coming between 150(38% extention of wave 1-3 from wave 4 end)-169(61% extention of wave 1-3 from wave 4 end) if wave 4 terminates between 118-120.
Here we can see asymmetry between intermediate wave 2 and wave 4 in terms of price and time, wave 2 being shallow and short and wave 4 being dip and long.
All in all one can look for a trade setup by looking @ following factors:
1)Price approaching in identified wave target zone.
2)After price fall's in target zone one should look for reversal candle.
3)After a reversal candle on next day,once price cross's reversal candle's high one can take trade and open 30% position,if it close's above reversal candle high take rest of the position and keep a stop-loss of reversal candle low on closing basis.
Comment:
yesterday price made low of 112.55 where there was :1 extention level of Minor wave A from wave B top.In today's trading session it has formed bullish harami pattern with almost same open and low for the day.Tomorrow if prices crosses 121 and closes above it then long trade will be active with a stop loss of 112 on closing basis on the down side with a tgt shown in the charts