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Wolfe Wave

Bearish Wolfe Wave - Nifty /weeklyFriends, Technically I see bearish Wolfe wave forming in nifty weekly chart, though it initially gave 2 red weekly candles, there is a high chance of making fresh all time high considering big event (Union Budget) (or) it might face resistance at 21970 to 22060. Hence i am unable to find proper stop loss for this pattern this time... Those who are already in short side please keep your tentative stop loss as 22125. If Nifty didn't cross 22060 go short and my target is big ( I may be wrong). I marked few of the supporting points with green lines along with the target. Your views, suggestions and comments are welcome. Please not this chart is only for educational purpose. Neither I am suggesting for any trade nor I am a SEBI registered analyst. Thank You.
NSE:NIFTYShort
by ravi32119
6
Banknifty - Probable Bearish Wolfe WaveThe bearish Wolfe Wave, a powerful chart formation that warns of impending bearish moves in financial markets. Understanding the characteristics and implications of this pattern can provide traders and investors with valuable insights into potential downside opportunities. As seen in the chart, a Wolfe Wave consists of five waves, labeled with the letters or numbers. I have used numbers 1 to five identifying different swing highs / lows. Basic rule of Wolfe Wave is that lines joining point 1 and 3 and line joining point 2 and 4 should converge ahead in time. If the slope of both the lines is positive, then the so-called structure is a bearish Wolfe Wave. Point 5 can overshoot as well, hence we wait for bearish price action to be formed after point 5 crosses line joining points 1 and 3. Sometimes, it doesn't touch the line and reverses, however it is a rare scenario. The bearish Wolfe Wave pattern serves as an early indication of potential market weakness and a forthcoming bearish trend. If confirmed, investments can be hedged or investors can sit on liquid investments in the correction phase. An interesting part is that the time of the bearish Wolfe Wave is coinciding with pre-election period where volatility is likely to increase pulling the market downwards. Please note - This is for educational purposes only, and not a trading advise. Please like and share if you like the content.
NSE:BANKNIFTYShort
by Market-Thalaivaa
2