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Setup - Hight tight flag | Part - IThis is the first part of the video series where I will explain how a high tight flag setup should look like. This will help you shortlist your focus stocks from the stocks that your scanner throws out. A high tight flag setup should have the following characteristics. Here I am using daily timeframe: - The pole is steep. Means high percentage move in a few days. - Pole consists of big and high volume candles which close at top of the range - The flag (pullback) should be shallow - retracement less than 50%, preferably less than 30% - The pullback length should be less than 10 candles. More than 10 indicates lack of buying urgency from institutions, hence dying momentum - From left to right the flag should get tight (small range candles) and volume should start drying indicating lack of sellers We go through these three examples to explain the point above: - IRCTC - CHOLAFIN ABCAPITAL
NSE:ABCAPITALEducation
by vc_blr
3
Bank Nifty:Plan of Action & What FOLLOWED( +18.52% OR +7298 pts)We witnessed an awesome planned fall in Bank Nifty, hope you all enjoyed and made money with the idea. Lets look at the Plan of Bank Nifty & Nifty My Favourite Bank Nifty first & Nifty Lets dig deep into the structure & my thought process behind it First thing First "KEEP IT SIMPLE BABY'' Model 1 (ABC(Elliott ABC)/Pole & Flag/ABCD Harmonic Pattern) what ever you call it, its the simplest of the pattern to recognise & trade Elliott Wave (ZigZag) - ZigZag is a 3 waves ''Corrective'' structure in bigger 5 wave "Impulse" - Subdivision is 5-3-5 - Wave B can be any corrective structure ie zigzag-flat-triangle Fibonacci Relationship between waves are - Wave C = 61.8%, 100%, 127.2% or max 161.8%(need to be careful while labeling wave C as wave 3 is 161.8% of wave 1) - Wave B = 50%, 61.8%, 78.6% or 86% Pole & Flag - Basically Flag is a pattern which forms after market has moved some distance - Flag is a consolidation pattern used to participate in the previous move, that can be up or down - Basic & Logic of the flag is as simple as, any consolidation which is in-between parallel channel - Trade can be initiated on break of parallel channel - Fibonacci relation for the flag can be specified in 2 reversal points(Profit Taking Zone) 1) 61.8% projection of first leg, which should end in the range of 'CENTER LINE REVERSAL'' of parallel channel 2) 100% projection of first leg, in this case, price reverse from bottom of the parallel channel Harmonic Pattern( Bullish ABCD) In Harmonic Pattern (Bullish ABCD) it is labelled as ABCD, instead of ABC of Elliott wave and all the harmonic patterns are derived form understanding ABCD structure, Fibonacci Relationship of all legs BC= 61.8%-78.6% of AB CD=127.2%-161.8% of BC CD=AB CD=127.2%-161.8% of AB Now lets come back to Bank Nifty Plan As per the above study, we can easily identify Impulse and Corrections Points were considered while planning - the rally following 20 Dec 21:1300 hrs was not Impulsive in nature - Price was struggling to rise above 61.8%-78.6% fib retracement resistance level & hovering in the range - 12 Jan-02 Feb-10 Feb formed ''TRIPPLE TOP" with narrow range of 1.38% - for the said pattern we witnessed a breakdown on 24 Feb 22 on opening candle Now the some important points to consider from ''Elliott Wave Principles'' - Wave B structure As per Elliott Wave, Wave B can be a ZigZag, Flat or triangle(TO KEEP IT SIMPLE - not to go in complex corrections) Possibilities of Correction Case 1(Zigzag) Case 2(Flat) Case 3(Triangle) Now from the above two patterns we can eliminate which doesn't fits the pattern Case 1(flag) eliminated we are not left with case 2 & 3 or say Possibiltiy 2 & 3 As per possibility 2 (flat) we get As per possibility 3 (Triangle) we get Both of the labeling stated Bank Nifty & Nifty are heading lower We will wind up this, you can keep sharing & liking the effort of the author so that I can come up with more in future Wish You Happy & safe trading Views are for ‘’EDUCATIONAL PURPOSE ONLY’’ trade at your own risk. "Always Respect Risk" Happy Trading Jai Hind -
NSE:BANKNIFTYEducation
by DhirajSinghBais
18