So the much awaited Corrective was here today.And seems to have played a perfect 5 wave form so far(5629-5491):
Though on the basis of less time taken by (iv),it can be very well argued that it is the (iii) that has ended at 5491 and (iv) and (v) have yet to play out.And in that case ,the labels would appear as
And as a Corrective on the whole has to be a 3 wave form--termed ABC--,enthusiastic Bears would say that the above played 5 wave form is only A of the Corrective and ,ideally speaking, we are in for a zig-zag ABC(as other Corrective forms have A playing out a 3 wave form) so more downside is left after B plays out its upmove.
This B to the up may play 38-80% retracement.
Then C to the down --ideally by as much as A.
Now there is a rider to the above Probability.
As my Guru Wave Rider ji mentioned,this 5 wave(played out today)may be C of an expanded Flat in following manner.
.png)
Though I need to mention here,A in the above chart needs to be a 3 wave form for an ideal Expanded Flat (which it is not) but it still need a mention here as it comes from my esteemed Guru. Otherwise also,all of us have seen Nifty chartering not very IDEAL paths & patterns.
Now a look at Momentum Indicaters.
.png)
For the first time after 30.1.2012,Nifty has closed below its 5DMA
Raghu
Though on the basis of less time taken by (iv),it can be very well argued that it is the (iii) that has ended at 5491 and (iv) and (v) have yet to play out.And in that case ,the labels would appear as
And as a Corrective on the whole has to be a 3 wave form--termed ABC--,enthusiastic Bears would say that the above played 5 wave form is only A of the Corrective and ,ideally speaking, we are in for a zig-zag ABC(as other Corrective forms have A playing out a 3 wave form) so more downside is left after B plays out its upmove.
This B to the up may play 38-80% retracement.
Then C to the down --ideally by as much as A.
Now there is a rider to the above Probability.
As my Guru Wave Rider ji mentioned,this 5 wave(played out today)may be C of an expanded Flat in following manner.
.png)
Though I need to mention here,A in the above chart needs to be a 3 wave form for an ideal Expanded Flat (which it is not) but it still need a mention here as it comes from my esteemed Guru. Otherwise also,all of us have seen Nifty chartering not very IDEAL paths & patterns.
Now a look at Momentum Indicaters.
.png)
Raghu
Dear Raghuji,
ReplyDeleteGood analysis..thank you sir
just on form basis, (not going into ratio and subwaves) in daily looks like 3rd completed frm 4531
ReplyDeleteLooks,they say, can be deceptive.So always keep pen,paper & calculater handy---to confirm the looks vide ratios--
Deletevery true guruji,
Deletefor a ew beginner like me i have very few guidelines so there are many possiblities of labelling. that causes confusion.
few guidelines u follow which i have come to know as per ur daily analysis i have tried to adopt. any analyst requires guidelines and proper approach as to what is ist priority 2nd 3rd in labelling. else keeping just 3 rules
he gets confused. not reached that stage yet. this is
my assessment of my situation.