# ULTRATECH CEMENT: A LEADING DIAGONAL

Long

NSE:ULTRACEMCO   ULTRATECH CEMENT
Theory:

DIAGONAL:
Diagonal are the motive waves like an impulse wave, but diagonals are different from impulse wave in that they do follow the first two Sutras (rules of impulse wave) for wave analysis, but it does not follow the third one i.e. Wave 4 should not intervene the territory of the wave 1. In a diagonal wave 4 always enters into the price territory of the wave 1.

Properties Of Diagonals:

Diagonals can be contracting or expanding type being expanding diagonal a rare one.
In contracting type, wave 3 is shorter than wave 1, wave 5 is shorter than wave 3, and wave 4 is shorter than wave 2.
In expanding type, wave 3 is longer than wave 1, wave 5 is longer than wave 3, and wave 4 is longer than wave 2.

Types Of Diagonals:

LEADING DIAGONAL
ENDING DIAGONAL

LEADING DIAGONAL: In a leading diagonal , waves 1,3, and 5 are all impulsive in nature or all in corrective form of zigzags. Wave 2 and wave 4 are always present in a zigzag form. A leading diagonal suggests the starting of a new wave & that is why it can develop wave 1 of a impulse wave and a first wave of a zigzag pattern.

ENDING DIAGONAL : This is the most common diagonal that can be found out at the ending of a main trend or main correction. It consists of all the waves 1-2-3-4-5 in a single or multiple zigzags. They can be found placed at 5th wave of an impulse wave or can been seen as a wave ‘C’ of a corrective waves zigzags or flat. After the termination of the ending diagonal , a swift & a sharp reversal takes place which bring the prices back to the level from where the diagonal began.

TRADING STRATEGY:

Plan A: Buy with SL of 7147 and look for the upside target of 7600/7800

Plan B : Sell in the region of 7800-7900 keeping SL of 8150 and look for the downside targets of 7050/6600/6400

Manish Bhardwaj (CMT L-1)
Analyst & Co-Founder
www.tradingsutra.com
www.waveutra.com

INSTAGRAM-
www.instagram.com/mansh_25

TWITTER-
twitter.com/mansh_25

YOUTUBE -

@TRADINGSUTRA @WAVESUTRA
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.