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GAIL : Leading DiagonalTRADING STRATEGY: Sell on rise keeping SL of 174 and look for the target of 145 zone in coming trading sessions 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 beagan.
NSE:GAILShort
by TradingSutra
Price action screaming buy!! Or is it as simple as it looks?If we go by the textbook definition of a falling wedge pattern, the price consolidates between two downward sloping & converging lines forming a wedge shape. (Not as difficult as it sounds, just looks at the chart). As per a common understanding of this pattern, the price continues higher after a breakout to the upside. Price action in LIC Housing finance shows a nice breakout of the falling wedge pattern. The price broke out with a strong candle and above-average volumes. This is a perfect condition for a buy trade. But wait, This is not the complete technical picture. Keep reading We recently saw how a bullish Inverse head & shoulder pattern failed in HDFC, even though it had a perfect breakout condition, Positive news about the merger and almost all ideas on trading view were out rightly bullish. (Check HDFC idea in my profile, neutral and saved myself from loss) If it were as simple as identifying a pattern and taking a trade, everyone would be making profits in the market. Back to LIC Housing Finance: Along with the falling wedge, there are other technical factors. Two important levels to watch are the 200 days moving average, and the Horizontal S&R line at 389.25. The price has taken support or resistance at this line multiple times in the past. Let’s look at the positives first: • Perfect falling wedge pattern & breakout with a strong candle and good volumes. • MACD trending higher and in positive territory. RSI Strong, and other indicators in the positive territory. • Price finished its correction exactly at 61.8% Fibonacci ratio with Price RSI positive divergence before the correction ended. Now the Caution Signals: • Price trading below Strong resistance line at 389.25 and struggling to cross above. • Price below 200 days moving average (a strong resistance level). 200DMA currently trading at @400. • Whole numbers are considered psychological S&R levels and 400 is a psychological level. • Fibonacci 38.20% level @ 405.60 may act as minor resistance. Combining these points, we get a strong resistance zone between 389 to 400 and minor resistance at 405. A breakout above the wedge pattern is the first signal. The price has to breakout above the resistance zone. If the breakout happens, wait for the price to retest 200dma or Horizontal line @ 389, whichever is higher at the time. I give more weightage to Horizontal S&R lines because these are the points where most buyers/sellers are concentrated. 200DMA is definitely a strong resistance and there will be many sellers at this level. I’m cautiously bullish on this stock. The best way to avoid failure is to wait for the price to give us a confirmation. I will be following the price movement closely and update this idea when I get a buy/sell signal. So follow me and stay tuned for the next update. Post your comments. Let’s have a discussion. Happy trading. Co-Authors: in.tradingview.com in.tradingview.com Disclaimer: This is not buy/sell advice. Please do your due diligence before making any trading decision or consult your financial advisor. Sharing my analysis and thoughts for a stronger and healthier community. Cheers
NSE:LICHSGFINLong
by Sai_Kumar
7
SYNGENE: TRIANGULAR WAVETRADING STRATEGY: BUY WITH SL OF 600 AND LOOK FOR THE TARGET OF 720/780/845 . Minimum 12% return from cmp in coming weeks. THEORY: Usually this wave structure forms in an impulsive sequence as wave 4 . It consists of 5 sub waves as wave-a , wave-b , wave-c, wave-d and a final setback wave-e . Each of these waves consists of three wave internal structure. Each of the waves should not break their extreme points. The final confirmation to enter the position comes when the price gets close above the level of wave-d. The minimum target of the pattern is just a poke above the level of wave-b and just above the level of wave-3 of the impulsive count. There is also a guideline to predict the target of this pattern which is known as triangular thrust. The triangular thrust is the measurement of the distance from the level of wave-a to the level of wave-b . This measured length should be kept to the breakout level of wave-e to get the target of this pattern. However, the measured length can be projected from the breakout level also to get the classical chart pattern (symmetrical triangle) measured target.
NSE:SYNGENELong
by TradingSutra