NiftyMagician : Basics of WW

[admin]

Motto of this discussion is to improve trading skills of well wishers......... so all get ready for this.. and prepare your questions… if having in your mind…

Please open your charts : Amibroker / MT4 so u can your self make some charts hand on this is our first discussion so may be we are allowed to make mistake ... from next time will give some improvement as required. today our topic is WW so on the way to WW we will discuss trend lines wedges or channels today our topic is WW so on the way to WW we will discuss trend lines wedges or channels. Before starting WW we must understand about trend lines

Trendlines : A trend line simple line can be drawn between two or more price pivot points. means connecting high and lows of candles. That actually shows support and resistance and we usually BUY if resistance broken or support taken by script n SELL when support broken and residence taken that shows trend. Below Image shows trendlines.


By drawing multiple trendlines we made some chart patterns and decide trades according to that like triangle wedges flags n all that we all discuss in coming sessions. Next steps towards WW are finding wedges or channels. In simple wedges are like contracting trading ranges mean less oxygen to scripts like NM sir says .. so that lead the scripts to blast ...
Few Days Back I had posted a chart of Nifty in the room :






 This is rising wedge in nifty a bearish sign. In above example the nifty is rising but trading ranges is narrowing.. people are Buying Buying n Buying only. This rising wedges is form giving alert to longs .. to be aware and as wedge broken stock will give a good fall.
You can see the Result :







 Nifty broke 200 points and still more to come.


Now coming to WW if we are good in drawing smart trend lines and if we are able to find wedges the it will be easy to find WW because some of wedges forms WW. Now we are mixing trendlines with wedges or channels and will count their points as one line is having points 1-3-5 and another line is having points 2-4.

The Below Chart Shows the same :


Chart Showing another Example Of Counting Points In WW is shown below :



 Points 1-3-5 on one line and Points 2-4 at another line. Waves 3-4 must stay within the channel created by 1-2. It means either narrowing or parallel not expanding. Wave 1-2 equals waves 3-4 (shows symmetry). Now exception is that point 5, point 5 can break the 1-3-5 trendline to show some divergence. It means to say that if point 5 broken is line and above this line that mean its hint for us to be prepare... to HIT. That is call Sweet Zone.




 Now about Targets, we need to made a new trend line for that is ... that is connecting point 1 and point 4. This is shown in below chart :





 This chart I had posted in room two days back. Yesterday Tatamotors fell and took support exact at points 2-4 line..

 Now we are connecting point 1 and point 4 which is giving your target line...





 Now target line is point 1- point 4 line............... This is called EPA -Estimated Price at Arrival which is our target price also. But WW gives Expected Time Also. It means the point where line containing points 1-3-5 crossing the line containing points 2-4. This Point is ETA - Estimated Time of Arrival. In short, Estimated Time of Arrival (ETA) is apex of extended trend line of points 1 to 3 and trend line of points 2 to 4.

[admin]

As shown in the chart, price hit target on given ETA.

 Now important in WW is support of other indicators ... and divergence. see in above crude chart pt 5 is lower then point 3 mean making lower low but MACD at time is making higher high that is Positive Divergence. So WW get support from MACD Positive Divergence an bangs on Target.


 Back to basic WW there are two type of WW. Bullish and Bearish. There is not much difference but they are mirror to each other and rules are vice versa... so if u able to find one u will be able to find another..



Comments :


 jivrajani: eta very near so avoid entry a

 Tejas: price making higher high / Tejas: and macd not / Tejas: with dropping volumes

 Bobby: we can SELL here for tgt of 113

 jivrajani: price is in between 21 wma & 34 ma...it can take support at 34 ma

 jivrajani: & at that level ETA will hit so ww should be closed at that level,,m i right?

 Achintya: Sry SELL double if 2,4 line breaks

 jivrajani: & after entry sl should be 131.2


Rawal Says :

Point 1 price making new high RSI making low high and macd not making new high.

Point 2 price higher volume lower bearish sign. Point 3 a false breakout done at point 5 (once taken support there), when point 5 broke MACD given SELL.

We sold at the break of of point 5 with last high of point 5 as SL. Further now price is going low but volume is getting higher that shows that down trend will continue.

These all are saying one word that is SELL. As achintya we should SELL one more lot at 2-4 line broken coz now RSI will break 50 level one more bearish sign.

Now u people tell me after u got 7 SELL reasons what you are going to do ?? SELL SELL SELL only… with closing basis SL 137, lot size of Hindalco is 4000. So we sold near @ 130. Waiting for target line that is 1-4 line to touch.






Now back to hindalco what happened to it ????? Any guess ??




It went to 90 but we exit at 113 as safely. Total 14 rupees earned total profit 28K in one lot. At that time lot size was 2000. One trade in a month is more then enough , so better we can do in options in this type of trades.


I have covered al basics of WW hope u all enjoyed it in next class we will attempt some deeper part of WW. Now I am expecting from all to do some practice post some chart of WW / Wedges/ channels improve your self and do some hardwork and earn well.



You can find some chart of WW here.

viewtopic.php?f=4&t=22&start=20

Achintya: WW works much better on hrly for positions/intra i observed what u say bhai?

WW works much better on hourly for positional / intra that is what I have observed . Hourly /Daily / Weekly I tried all and all working nicely. Further, for intra day 5 min and 15 min time frames are better. One more important thing WW can fail in wave 3 of EW ... else it give good result if made proper WW with symmetry


Some Examples by use

jivrajani:


omkaar :


omkaar :

ashishp:

ashishp:


Relation between EW and WW

[ashishp]

[admin]

[ashishp]

[rawal]

[admin]

Will Cover in next session by gaurav sir

[allansals2006]

Could you please share the afl code for the below afl.