UNDERDOG-29

How to count Neo wave Impulse

Education
NSE:TATASTEEL   TATA STEEL LTD
8353 views
122
Current wave counts
Primary-wave 2 (orange)
Intermediate-wave A (Blue)
Minot-wave B (Red)
Minute-wave C (Yellow)

Applied Neo wave Impulse Rules:

1)Counting started from faster retraced low
2)wave 2 should not retrace wave 1 by more then 61.8%
3)wave 2 should be equal or longer then wave 1 in terms of time
4)0-2 TL should be clean and price action of 1 should not touch 0-2 TL
5)wave 3 should not be shortest
6)wave 4 should not enter wave 2 zone
7)2-4 channel should not have more then 4 touch point,here on 5th instance channel was broken
8)wave 4 should be longer then wave 3 in terms of time
9)Atleast 1 Alternation between intermediate wave 2 and 4 should be there,here alternation is observed in terms of retracement,pattern complexity,time and price
10)Every new motive wave had 2 stage confirmation.

Analysis

Looks like Tata steel is certainly not in buying zone,as it has completed intermediate impulse cycle and it has broken minute 2-4 TL,minor 2-4 TL(not shown in the charts),minute 4 low's in lesser time then minute 5 took to form and 21 day simple moving average .

A decisive close below 1400 can trigger fresh selling till 1240-1250 where previous price action zone comes along with 23.6% retracement of entire intermediate cycle from 365-1535.Hence short selling can be done if price goes below 1410 with a stop loss of 1460 on the upside and target of 1250 and 1140.

Continuing to this logic meanwhile during this fall if price's comes to 1250 level then it will be breaking intermediate 2-4 TL in lesser time then intermediate 5 took to form hence it can be assumed that intermediate top has been formed and going ahead price can even touch 1140 minor 4 lows and 709 intermediate 4 lows(I know it sounds ridiculous at this point) but i am mentioning this becoz it seems like we have completed intermediate impulse cycle.

As of now metals stocks are not participating in the on going rally so keep your exposure limited as in case of any major selling portfolio returns would be severely impacted if metals occupies major chunk of your portfolio.One can even start hedging by selling in the money call or of tata steel keeping mentioned spot price as stop-loss.Further Indicator's and Candle stick patterns can be used for efficient entry and exits.

PS: Interesting observation skip if you are already boared

1)As per the rules 5th(minute) extention of 5th(Minor) extention of 5th(Intermediate) wave cannot take corrective form unless 1st of highest degree 5th is sub-divided in 3.This is seen in this case.It was confusing me at first that Minor 5th is making terminal impulse by looking at the overall shape i got by connecting TL's but as Minor 1st of Intermediate 5 is not sub-divided in 3 this possiblity can be ruled out,also here Minute 4 has not entered Minute 2 pricezone which confirms termination of Minute,Minor and Intermediate 5th wave @ the shown place as per my view.

2)Both variation of Neo wave pattern Diametric pattern is seen,
Diamond Diametric-Intermediate wave 4
Bow-Tie Diametric-Minor wave 4

3)As mentioned by many Author's of wave theory and as noted historically wave 5 in commodities are longest.Here wave 5 is longest in terms of both price and time .

I have tried showing everything that i have charted hope-fully anyone reading this finds this post logical just like me
Trade active: Trade got activated in today's session when prices went below 1410.Price has taken support of IChimoku cloud on 6 occasion from where i have started labeling(havent shown over here),and today price made low 1360 and again took support of Ichimoku cloud meaning a small bounce can't be ruled out hence if in tomorrow's trading session we see a gap up opening then one shud close short trade and wait for another set-up for taking short trade.If prices continues to fall then one shud start trailing SL as per there risk appetite.On the down side we have a 2-4 Trend-line (Intermediate degree)@ 1320,hence price can stop at that level.

Comments

Very well put together idea, keep up the great work!
200 coins
+8 Reply
keep it simple
+5 Reply
UNDERDOG-29 redull001
@redull001, i think had i not shown retacement levels then it wud have looked cleaner.
+1 Reply
why
Reply
Good Work
+1 Reply
GOOD ANALYSIS
+1 Reply
Price action is a very simple method to track trend

Don't apply any alien theory in that
+1 Reply
UNDERDOG-29 Trading_Freaks
@Trading_Freaks, yes i believe in tracking price action to analyse trends but i had many questions which got answered by the rules described in this theory.
Reply
Technical analysis is not easy but it should be simple.
The chart is very messy with a lot of unwanted data that actually creates 'Confirmation bias'
+1 Reply
bazooka69 Omsai1238
@Omsai1238, Exactly the point is to earn money with simple price action!!!! Why such complex analysis unless one is an institutional investor!!!!!
+1 Reply