TUTORIAL NIFTYGood Morning.
In the SERIES OF TUTORIALS, Learn with a sharp eye the formations such as Triangles, also Called Ending Diagonal .
1. The slope of the Triangle is downward facing and is Usually formed when the Market is about to take off to the upside. This usually happens when wave 3 UP is about to take place and Usually opens with a GAPUP. Price MUST breakout ABOVE the Triangle and NOT RETEST it again in that specific Time frame. Such a breakout gives you very high profits on the Long side.
2. A Leading wedge
1. The Formation is an UPWARD facing Slope wherein, the upper and the lower upward facing slopes show some sort of wanting to JOIN Together at some given point of time. This is a Call for the Shorts as USUALLY such Diagonals lead to the Markets cracking up. Such formations usually happen when waves 2 n 4 are forming. However, I have seen Leading Wedges turning into BULLISH MOVES also. So the MAIN CRITERION in a Leading wedge remains that Price must COME BELOW the Lower Slope and Must not go Back
It must also be Remembered, that 9/10 Patterns/Formations take place is SMALLER TIME FRAMES such as 1/3/5/15 minutes. Rarely do such formations happen on Bigger time frames.
