Diagonal
zen technologies can come in correction#Zen technologies looks in correction, ending diagonal has formed.
Diagonal formation in AARTI-INDElliott Wave Analysis
A diagonal has formed in the C wave. there may be a small correction pending.
the correction seems to be a 2nd wave to the Previous 1st impulse wave.
almost 60% fall was done.
we may expect a bounce back.
further chart will be posted accordingly.
kindly follow to kept updated.
BankNifty - Unveiling the Magic of Wave Analysis Near ATH-44151Introduction
In the world of financial markets, technical analysis plays a crucial role in understanding market trends and making informed investment decisions. One powerful tool in this domain is wave analysis, which has proven its accuracy time and again. In a recent BankNifty analysis, wave analysis beautifully predicted the index's movements, providing traders with valuable insights. This article will delve into the fascinating details of this analysis, its striking coincidence with the actual market movements, and the subsequent implications for the BankNifty index.
The Coincidence: Wave 5 and the All-Time High on short term
Wave analysis involves identifying patterns and cycles within price movements. In the case of BankNifty, the wave analysis successfully anticipated the index's behavior, specifically focusing on the relationship between Wave 5 and the all-time high (ATH).
Wave 5 is the final impulse wave in Elliott Wave Theory, representing the last leg of the uptrend. As per our last update **BankNifty's- Danger: Is this A Rising Wedge?– Time to Rethink**
Astonishingly, the analysis predicted that Wave 5 would measure 62% of the distance covered by Wave 1-3, precisely at the level of 44085. The BankNifty index then surged slightly above the projected level, reaching 44151.70—a mere 0.10 points shy of the ATH at 44151.80. This near-perfect alignment with the projected level served as a testament to the accuracy of wave analysis.
The Dark Cloud Cover Pattern: A Warning Signal
Building upon the foundation of the initial analysis, the subsequent market movements confirmed the reliability of wave analysis. After hovering just below the ATH, a bearish candlestick pattern emerged, known as the Dark Cloud Cover on daily chart this week. This pattern consists of an opening above the previous day's high or close, followed by a price decline, closing below the midpoint of the prior candle.
The Dark Cloud Cover, observed in the BankNifty index, provided a firm footing to the analysis, indicating that the index was likely to halt temporarily below the ATH of 44151.80. It acted as a warning signal for traders, highlighting the possibility of a reversal or consolidation in the index's upward trajectory.
The Downside Move: A Potential Shift in Sentiment
The subsequent session on May 17th witnessed a follow-up downside move, confirming the analysis's predictions. The BankNifty index slipped from 43950 to 43446, experiencing a significant fall of approximately 500 points. This downward movement hinted at a potential shift in sentiment, as market participants reevaluated their positions and adjusted to the prevailing conditions.
However, it's important to note that the index bounced back from its lows and closed at 43748, indicating that the downside move might not be fully established yet. Traders and investors need to closely monitor future market developments to assess whether this downward momentum will continue or if a reversal could occur.
The Road Ahead
In conclusion, the recent BankNifty analysis using wave analysis techniques has showcased its effectiveness in predicting market movements. The coincidental alignment between Wave 5 and the ATH, followed by the emergence of the Dark Cloud Cover pattern and subsequent downside move, confirms the importance of technical analysis in navigating the financial markets.
As the BankNifty index navigates these critical junctures, traders and investors should remain vigilant and adapt their strategies accordingly. The interplay between technical analysis, market sentiment, and fundamental factors will determine the index's future trajectory.
Thanks for reading.
BankNifty's- Danger: Is this A Rising Wedge?– Time to RethinkEarlier in The Day - When Magical Level of 43350 Holds
Ending diagonal
Also known as an ending wedge, is a term used in the field of technical analysis to describe a specific chart pattern that signals the end of a trend or price movement. This pattern is characterized by converging trendlines that form a wedge shape and typically consists of five waves, with the third and fifth waves being smaller than the first and second waves.
Rising wedges are bearish reversal patterns that often signal the end of an uptrend, leading to a decline in prices.
Few classic examples from history where rising wedges have occurred, and financial instruments have collapsed:
1. The Dot-Com Bubble (2000):
2. The Global Financial Crisis (2007-2008): A rising wedge pattern emerged in the US housing market and various mortgage-backed securities leading up to the financial crisis.
3. The Crude Oil Crash (2014-2016): Crude oil prices experienced a sharp decline between 2014 and 2016 due to a combination of oversupply and weak demand. A rising wedge pattern was evident in crude oil prices before the crash.
As a trader, it is essential to be cautious and aware of potential risks when trading financial instruments that exhibit rising wedge patterns. Some tips to keep in mind are:
1. Stay informed about market trends and technical analysis patterns to identify potential reversal signals, such as the rising wedge.
2. Keep track of economic data, news, and events that could impact the financial instrument you are trading.
3. Practice proper risk management by using stop-loss orders and position sizing to minimize potential losses.
4. Diversify your trading portfolio to reduce the impact of a single financial instrument's collapse.
5. Remain disciplined and follow your trading plan, ensuring that you do not give in to emotions like fear or greed.
16th March 2023 :Last idea - Truncated Pattern Are Really Explosive : BankNifty
Diagonal formation in USDJPY; Elliotical ApproachHello Traders!
1. We see a clear 5-wave impulsive move forming a leading/ending diagonal.
2. It could be Wave 1 or Wave A.
3. Targets and stop have been marked on the chart.
Do use proper risk management.
Happy Trading!
Profits,
Market's Mechanic.
Chola Finance SHORT, Rounding Top The Short Setup is as follows:
Elliot Wave Standing Point:
Rise from Covid Lows can be marked as a Diagonal in the form of ABCDE and Wave E just completed in September
For the Short Term as per Daily Time Frame, we can see the following Observations:
1) RSI gone below 40 ✅
2) ADX at 24 rising, DMI in Sell Mode ✅
3) Super Trend (10,3) gone in Sell Mode ✅
4) MACD in Sell Mode ✅
5) And Most Importantly there is a Classic ROUNDING TOP Pattern Breakdown ! where the Base has Low Volumes and the Breakdown is on High Volumes
Downside Target open to:
705 - 700 (as per Rounding Top Pattern)
Stop Loss:
Can be kept > 760
Since on Weekly Time Frame, it is a Diagonal as per EW Count, the Downside can exceed even further. So DO NOT Bottom fish
The Target of 705 - 700 is bare minimum expected (conservative case)
SBI Card SHORT - So Wave E high did not get taken out all this while even though, hence Setup still valid
- A 5 wave Fall (Wave i) on Hourly Charts can be Counted from Wave E high
- A 3 Wave Corrective Rise (Wave ii) in the form of an Expanded Flat retraced 0.618% of the Fall from Wave E high
- Price did Wave i and then ii, and now iii on Downside has Started📉
Wave i= Wave iii equality comes at ~ 845🎯
Trade Plan as follows:
Short at CMP= 915.5
Downside Target Zone= 850 - 840
Stop Loss= above 940
Srtransfin can go long.NSE:SRTRANSFIN is in wave 5 of larger degree and also in smaller degree. more possibility of going bullish, safe entry after breakout of ending diagonal.
#BANKNIFTY completes an ending diagonal and can head southBanknifty's upmove from mid Jul (from ~ 32400) has been impulsive - either a wave 1 of a new bull market or wave C of X of an ongoing correction ( heading to 30000-32000 region)
Whichever the case, the immediate direction is down if todays high of 40753 is intact.
The ending diagonal is clear and should soon resolve to the downside. Expect an initial target move into the 38420 area. The structure of this downmove should indicate to us the next course of action. For now - look for new lows if today's high holds.
Nifty should follow same direction
With exiciting termination wave -An Leading Diagonal in SUZLON.Review the " Leading-Diagonal ": As you know, Leading Or Ending Diagonals one of two types of motive waves, the other being in impulse wave. The Leading Diagonal is a terminating wave pattern that is form the 1st wave position of impulse waves or as wave A. This is an example here live - SUZLON. We have an Leading diagonal in the 1st wave position of an impulse wave. Now what's exciting about this real-time example:
1) We've throw if you connect the trend lines which connect the extremes of waves 1 and 3 and extend that forward in time. The wave 5th is a bit of price movement above that trend-line which is refer to as Throw-Over. I actually like to see that because that is sign of termination of wave 1st as higher degree or wave 5 of (1).
2) The high price at 13.1, we've also seen spike in volume which is even another sign of termination of termination of wave 1st as higher degree or wave 5 of (1).
These both sign are sharp resolution and dynamic nature of the structure, meaning terminating wave pattern. This is why I'm so exciting to this post and probably one of the most exciting as "Elliott wave patterns" for me.
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The Diagonal Triangles are easy to identify, and its introduce dramatic reversals in price, typically to the origin of the pattern and then some! Furthermore, the parameters of this wave pattern are easily discernible and useful in formulating a trade plan
The signs that indicate that a Diagonal Triangle is complete : 1. The presence of throw-over and 2. a spike in volume.
Throw-Over: it occurs most often in wave 5 when prices moderately exceed the trend-line connecting the extremes of waves 1 and 3.
A spike: in volume occurs when there is unusually large volume, and it typically occurs in unison with throw-over.
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I am really exiting to see next move.
USDINR terminal move - 400 pip downmove likelyUSDINR had broken out a Triangle in the middle of Sep 21 . The subsequent move has been overlapping waves but counts well as an ending diagonal. This is a terminal move and has breached the Mar 20 high ending the larger degree pattern as well. Divergence is also developing at this high v/s previous highs. The move from 72 levels seems done and a reversal is on the cards.
When weakness sets in, it can take the pair to 73.75 level. Moves on completion of ending diagonals are quick heads to the origination of the pattern.
Target area is indicated.
As always keep stop losses to protect capital
EDUCATION- GRAPHICAL DIAGONAL PATTERN IN DETAIL_ELLIOTT WAVEThis is the educational post regarding the types of diagonal patterns-
SUMMERY :
LEADING DIAGONAL
ENDING DIAGONAL
LEADING DIAGONAL
Always form in inner wave of wave (1), so one can expect wave(2,3,4 & 5) within main impulse wave to complete the pattern.
PATTERN:
1- Comprises of (5-3-5-3-5 (inner waves)) or (3-3-3-3-3) (inner waves)
2- wave (4) always overlaps wave (1), but can't go beyond origin of wave (1)
3- wave (3) > wave (1) & wave (5) could be >than wave(1)
4- wave (3) max projection 161.8% (fib ratio) and it can't be shortest wave among all waves
5- wave (5) can't truncate
6- wave (5) max projection 61.% of wave (1) and wave (3), but can't go beyond line joining wave (1) and wave (3)
7- LD can either be expanding(ED), converging (CD) or parallel wedge
To enter in this pattern one should wait for the complete formation of LD and enter after completion of wave (2) after completion of LD !
ENDING DIAGONAL
Always form in inner wave of wave 5 of any impulse. Whenever you are observing, something like ED, one should make sure wave (1), wave (2), wave (3) and wave (4) has been completed so far.
PATTERN
1- Inner structure (3-3-3-3-3) (5 sub waves in total)
2- wave (1), (2) &(3) is always a simple zig-zag
3- wave (2) & (4)could be anything within (a-b-c) pattern
4- Here also, wave (1) and wave (4) overlaps as of LD
5- Wave (3) can't go beyond 161.8% (fib level), as of LD
6- wave (5)can be > = 61.8% of wave (1) and (3) but can't go beyond line joining wave (1) and wave (3)
To enter in this pattern one should wait for the complete formation of ED and enter after completion of wave (5) after completion of ED !
#Crudeoil turning lower - Wave A down in a diagonal Crudeoil has been on a tear making new highs in the last few weeks . All this may have ended in a wave 5 of 5 and a major turn seems to have begun. The downmove from the Feb 15th high is clearly a diagonal wave A ( or wave 1) , a correction in wave B ( or wave 2) has completed a few hours back.
As long as the 94.95 high holds , look for an accelerated move at a minimum to 84, this could then lead to a medium turn that will keep crudeoil make new lows. We'll reassess further bearish potential at the later stage.
For now look for a move to the 84-85 handle
A Complete impulse wave about to end in #BANKNIFTYBanknifty is now showing all signs of a longterm completed 5 waves from Mar 20 to Sep 21. The ending diagonal as wave 5 of 5 adds credibility to the structure.
What this means is that if the 38224 high is not broken we are heading to 30000 area in an A-B-C correction. One more slight maybe possible, if it does , we'll relook for a new short entry.
The downside risk is high now. Upside seems limited and not worth betting on
EWT: Will nifty hit 18000 before September end?Extending wave (5) should easily travel above 18000 and is likely to continue toward 18480.
Target 1: 18000
Target 2: 18142
Target 3: 18350
Target 4: 18480
Stay tuned for the next update.
Reliance: The ride of an Impulsive wave.It looks like the correction Phase is complete at wave (c).
focus on key levels will be beneficial. we are going to ride on wave 3.
wave 4 can't exceed the starting point of wave 1.
There is invalidation below 2044.
I will upload Lower Timeframe analysis.
UBL Disinvestment & Downtrend Start !!TREND ANALYSIS & TRADE SETUP !
WAVE ANALYSIS !!
Follow Chart Instruction.
Do not be Hurry for entry.
Wait for Proper Entry Setup.
Buy/Sell with Best Risk Reward.
Educational Chart Only.
Wait for ENTRY CONFIRMATION !
Risk:Reward: 8-10 times.
Reliance: 4H Timeframe analysis If wave ((4)) is completed at 2816 then we are on the (2) wave of wave ((5)) or We are still on the sub-waves of wave ((4)).
stay tuned for new Update.
Adani Ports - Good Money & Learning For Readers (Pls Read Fully)A friend of mine asked me to consult him on Adani Ports , so I did.
Uploading the same for the benefit of all my folks here at Trading View.
Adani Ports is in it's main 3rd of a large degree (Wave count marked in Red). It's in the last stages of completing this 3rd as depicted on the chart.
It should now go for it's last move up before it completes the 5th of 2 smaller degrees (Wave count marked in Orange) and also it's 5th of 1 smaller degree (Wave count marked in Blue), thus completing the main 3rd at around 725 (marked in dotted Green line on the chart). The main 4th of a large degree (Wave count marked in Red) should then begin its descent from these highs. Since the main 2nd was simple and shallow, the main 4th could be complex, irregular and deep as per the guidelines of alternation, hence having the potential to throw the prices right upto 575 (marked in dotted Red line on the chart). This is also the range of the 2nd of smaller degree (Wave count marked in Orange) as per one of the guidelines.
One interesting observation is the Expanding Wedge type Ending Diagonal that I have drawn on the chart for educational purposes, which is a common phenomenon in a 5th (Wave count marked in Orange)
Cheers !!
NOTE: This view shall be invalidated if the price goes below 613 with force.
Example of Expanding Triangle Howdy Traders,
we already know that Triangle occurs in Corrective waves and Diagonal occurs in Impulsive waves.
Their are three type of Triangle
1)Expanding Triangle
2)contraction Triangle
3)barrier Triangle
Their are 2 types of Diagonal
1) Leading Diagonal
2) Ending diagonal
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This is the example to expanding diagonal
Rules :
wave C,D,E each moves beyond the end of the preceding same - directional sub wave.
sub waves B,C and D each retrace at least 100% but not more then 150.75 % of preceding sub wave.
sub waves B, C, D usually retrace 105 to 125 % of the preceding sub wave.
No sub wave has yes been observed to subdivide into a triangle
