I had mentioned in my post Trade Set up for 27.2.2012 that outside boundary for W4 was broadly at 5323 as per the guideline that W4 would not go below the subwave four of W3.
But today I am giving some more leverage to my label of W4 as
1.Subwave four of W3 is not well-defined( as fractals of W3=4588-5629 are not very clear);
2.W4 as zig-zag can do upto 5250 if we go by its subwaves ABC where
A=5629-5461=168;
B=5461-5537(ended at 5521);
C can do upto 1.617*A for a zig-zag ABC ( and as sson as it does 1.618*A or more it becomes extended wave 3 instead of C).
And we are very close to this relabelling.
In fact I have gone long in closing minutes with SL at 5249 because if it is indeed a W4 then ensuing W5 can give me solid returns and if it is not W4 then the SL so close would minimise the loss.Thus risk-reward prompted me to go long in closing minutes(very much against momentum).
And charts:
What if we go below 5249?
That would CONFIRM that the Impulse started from 4531 had indeed ended at 5629 and the current down move should be taken as Corrective to that Impulse(4531-5629=1098) and would retrace 50%=5080 or if it retraces 62% then 4950.
Raghu
But today I am giving some more leverage to my label of W4 as
1.Subwave four of W3 is not well-defined( as fractals of W3=4588-5629 are not very clear);
2.W4 as zig-zag can do upto 5250 if we go by its subwaves ABC where
A=5629-5461=168;
B=5461-5537(ended at 5521);
C can do upto 1.617*A for a zig-zag ABC ( and as sson as it does 1.618*A or more it becomes extended wave 3 instead of C).
And we are very close to this relabelling.
In fact I have gone long in closing minutes with SL at 5249 because if it is indeed a W4 then ensuing W5 can give me solid returns and if it is not W4 then the SL so close would minimise the loss.Thus risk-reward prompted me to go long in closing minutes(very much against momentum).
And charts:
What if we go below 5249?
That would CONFIRM that the Impulse started from 4531 had indeed ended at 5629 and the current down move should be taken as Corrective to that Impulse(4531-5629=1098) and would retrace 50%=5080 or if it retraces 62% then 4950.
Raghu
Guruji AP - I think you meant the Impulse from 4531 i/o 4351.......
ReplyDeleteThanks Naagi--
DeleteDear Raghu ji,
ReplyDeletePranam.
Very nice post..100% educative for EW students like me.
Thank you very much.
Good luck.
very nice post guruji. but one theoritcal question, when u r counting from 5629 as abc why u ruled out abc of A of flat whereas it can be abc of A of triangle.
ReplyDeleteif the answer is long and time doesnt permit , u can ignore the question . no problem
Dear Piyush,
ReplyDeleteWhenever a wave starts the 1st issue is to see whether a 5 wave or 3 wave.Only when it confirms that, the next possiblity emerges.Initially though eager learners want to "predict" .I however look for oppotunities where a viable trade can be set up.Why become too academic about anything? Lets trade the tradable and keep labelling as we move up--
thank u guruji,
ReplyDeletei think i have a lot more things to understand before i get this.