Now how to trade :
Strategy (i) : Inner Trendline Upper Breakout - If this happens, our stops will be very little, the risk is lesser and we gain more when SBI reaches to top of outer trendline. At outer trendline 2 scenario's possible.
(a) Retraces back as per the corrective wave and breakdown
(b) If Nifty gets , SBI will go straight up till 263's to fill the Gap, in that case trailing of our stops will help to gain max points. Those follow Me for sometime will know that Logic - " Gaps will be Filled, every single tick move will be filled by price action "
Strategy (ii) : Outer Trendline Breakout - If it breaksdown straight from here..cool, as simple as breakout
(a) The wait & watch approach traders can wait for top trendline of triangle in SBI to break instead of entering on inner channel.
Even if you want to get little fancy , count waves, we are at start of Wave 3, if all goes well as mentioned above.If downside breakout happens Wave 2 area mentioned above will become completion of Wave 1. Just alter counts. If confused, " Don't Count, Simple...Its not needed "
So why do I have corrective structure ?? Guys, its same as moving averages setup, sometimes works sometimes gives false breakout and reverses to another direction. If you are ardent follower of trade only downside Breakout as per theory.
Non-Elliott's don't worry, We can hit goal on anyside of breakout ( thats an advantage we have) but SBI should not give false breakouts, even if that happens be quick to react and enter other side breakout in SBI , that will cover losses.
Your wish to trade any setup mentioned above...Happy Trading !
Note : Today I will post Nifty charts after market makes a move, its still ranging, so My views didn't change much from yesterdays post !