BATA INDIA: IMPULSIVE RISETrading strategy:
Buy near 1995 , keep SL of 1950 and look for the target of 2050/2080. 2080 is the level where wave 5 = wave 1
Theory :
MOTIVE WAVES: : Motive waves are progressive waves which shows the trend is going to progress & are having a five-wave structure. While the corrective waves are a halt to progression and consists of a three-wave structure or various kind of its forms as a pattern.
Motive wave and its component waves, i.e., waves 1, 3 and 5 . Their structures are called “motive” because they contribute to the progression of the trend. Whereas corrective wave are the interruptions, which include waves 2 and 4. Their structures are called “corrective” because each of them are a reaction on the opposite side of the main trend.
There are some characteristics through which we can identify the impulsive wave. Every impulse wave follows some set of rules which we call them as SUTRAS for wave analysis. They are –
1. Wave 2 cannot move beyond the starting level of the wave 1. That means wave 2 never retrace 100 % of the wave 1.
2. Wave 3 is never the shortest one among the wave 1,3 & 5. It does not mean that it has to be the longest one.
3. Wave 4 never intervene into the price territory of the wave 1.
