Indus Towers: Channel Breakout Meets Wave TheoryA simple but powerful concept from classical technical analysis — the channel breakout target — plays out beautifully here.
This idea, also discussed by Dr. Sudhir Dixit in his book on breakout signals, gives traders a disciplined way to estimate post-breakout targets.
After a steady five-wave advance from ₹312.55 to ₹369.55, Indus Towers entered a clean descending channel , forming the corrective Wave 2.
The breakout that followed came with a strong volume surge , confirming a clear shift in trend direction.
Concept Recap
In a channel breakout, the target can be derived by measuring the height of the channel (distance between support and resistance) and projecting it upward from the breakout point.
That gives the 1:1 projection , while stronger rallies often stretch toward 2:1 or 3:1 multiples of that range.
Wave Perspective
Elliott Wave traders can interpret this breakout as the early phase of Wave 3 , which typically extends 1.0 to 1.618× Wave 1 .
In this case, the 1.0× projection aligns near ₹395, while higher targets in the ₹412–₹430 zone fit naturally within Wave 3–5 progression.
Key Chart Highlights
Descending channel breakout — trend shift confirmed
Volume surge validates breakout strength
Wave 3 minimum extension ≈ ₹395
Stop-loss below ₹359 keeps the structure intact
Takeaway:
Even without labeling waves, the logic of a channel breakout offers a structured, rule-based method for identifying profit zones.
Combine it with wave theory, and you transform a simple pattern into a roadmap for impulsive rallies.
Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.
