Guideline of Alternation -For Monday dt. 22-8-2011

As the Count currently being followed by me:

Wave C from 5944 downwards--5 wave form

W1=5944-5329=615

W2=5329-5740=411

W3= 5740 downwards ---in progress-----

SW1=5740-5497

SW2=5497-5702

SW3=5702-4946

SW4=4946-5194

SW5=5194 downwards in progress:

(i)=5194-5053=143 OR

(ii)=5053-5132=79(55%)

(iii)=5132-****

(iv)-****( this (iii)and (iv) got consumed by 19.8.2011 gap-down)

(v)=4894-4797

And W4 upwards has started done 4797-4855* so far

Alternatively

(i)=5194-5053=143

(ii)=5053-5132=79(55%)

(iii)=5132-4797=338

(iv)upwards started having done 4797-4855* so far

Thus ,currently we have two probabilities:

Either the current upmove is W4 (retracement of W3=5740-4797=943);

Or it is (iv) of W3 (retracement of (iii)=5132-4797=335)

At this point, The Guideline of Alternation can be very useful guide.

As W2 was an extended flat,if this upmove is W4, it should be a zig-zag(or a triangle).

As (ii) of W3 was a zig-zag,then if this upmove is (iv),it should be a flat (or a triangle).

And if it takes the shape of a flat (as (iv) of W3) it can go below 4797 and then come up to minimum retracement level of 4877.

So keep a close- watch.

Best of luck for today's trade.

Raghu