Re: NiftyMagician : Study Charts by Omkaar
Posted: Sun Sep 27, 2015 1:50 amTATA STEEL: (LONG TERM ONLY)
Above posted is a daily chart of TataSteel on which I have tried to label EW waves.
As clearly visible, there are 2 major moves appearing on daily chart:
Up Move : 197 to 580
Down Move : 580 to 200
This downmove has retraced to almost 99% of the previous upmove and failed to break the low of Wave 1.
[Rule for Wave 2: Wave 2 can never retrace more than 100% of wave 1.]
Now , please be aware that we still have multiple possibilities:
Possibility 1:
Previous Upmove was Wave 1 and this downmove is Wave 2 i.e. retracement of the previous upmove.
So, if the previous low which was near 197 is not breached, we can see a good upmove in this counter as it can enter in Wave-3.
Target: 161.8% of previous upmove which means there are good chances of hitting 8xx in long term.
Possibility 2:
Previous Upmove was Wave A and this downmove is Wave B. So, if the previous low which was near 197 is not breached, we can see a good upmove in this counter as it can enter in Wave-C.
Target: Atleast 61.8% of previous upmove(i.e. 430). But, this wave can also hit 100% or 161.8% of previous upmove. Remember, Partial profit booking never hurts anyone.
Possibility 3:
PREVIOUS LOW IS BROKEN. SL HIT - STRICTLY EXIT
If previous low is broken, I would suggest to exit the counter as then we loose the chances of Wave-3.
Irregular A-B-C still possible, but I would advice its better to exit and put you money in some other trade instead of hoping and praying.
PS: This study is NOT for intraday players.
Trade/Invest wisely. Using multiple techniques to support the study and get more high probability of winning trade would be an added advantage.
Feel free to share your views.
All sort of feedback/correction/Contra views are welcome.
Above posted is a daily chart of TataSteel on which I have tried to label EW waves.
As clearly visible, there are 2 major moves appearing on daily chart:
Up Move : 197 to 580
Down Move : 580 to 200
This downmove has retraced to almost 99% of the previous upmove and failed to break the low of Wave 1.
[Rule for Wave 2: Wave 2 can never retrace more than 100% of wave 1.]
Now , please be aware that we still have multiple possibilities:
Possibility 1:
Previous Upmove was Wave 1 and this downmove is Wave 2 i.e. retracement of the previous upmove.
So, if the previous low which was near 197 is not breached, we can see a good upmove in this counter as it can enter in Wave-3.
Target: 161.8% of previous upmove which means there are good chances of hitting 8xx in long term.
Possibility 2:
Previous Upmove was Wave A and this downmove is Wave B. So, if the previous low which was near 197 is not breached, we can see a good upmove in this counter as it can enter in Wave-C.
Target: Atleast 61.8% of previous upmove(i.e. 430). But, this wave can also hit 100% or 161.8% of previous upmove. Remember, Partial profit booking never hurts anyone.
Possibility 3:
PREVIOUS LOW IS BROKEN. SL HIT - STRICTLY EXIT
If previous low is broken, I would suggest to exit the counter as then we loose the chances of Wave-3.
Irregular A-B-C still possible, but I would advice its better to exit and put you money in some other trade instead of hoping and praying.
PS: This study is NOT for intraday players.
Trade/Invest wisely. Using multiple techniques to support the study and get more high probability of winning trade would be an added advantage.
Feel free to share your views.
All sort of feedback/correction/Contra views are welcome.
