WaveTalks-Nifty-The Evening Star / Wedge CollaborationThis short video explains how the evening star turns into a wedge pattern. If correct, downside 16590 was critical support, holding above Nifty could bounce back again to 16680-16700. On the upside, Holding below 16712 highs, It can attempt to fall back again to 16615-16625 & assuming that if Index falls below 16590-critical support, it can fall to 16500 / 16440 / 16400 levels
When you splash around the water, you get to hear a peculiar sound which you heard over the video at the start.
I have compared that sound of up & down in Nifty Index to water pool splash. This scenario in technical analysis is called a wedge pattern
What Is a Wedge?
A wedge is a price pattern marked by converging trend lines on a price chart. The two trend lines are drawn to connect the respective highs and lows of a price series throughout chosen periods. The lines show that the highs and the lows are either rising or falling giving the appearance of a wedge as the lines approach a convergence. Wedge-shaped trend lines are considered useful indicators of a potential reversal in price action.
Elliott Wave Analysis
These wedges are further classified as Type 1 / Type 2 diagonal (wedge). Depending on the position of the structure unfolding. They are called
(Type 1)Leading Diagonal – Start the price move
(Type 2)Ending Diagonal - End the price move
-------------------------------------------------------------------
Last Video Idea - Nifty Bearish Bat Harmonic Pattern
-------------------------------------------------------------------
