Pre-open:
Following chart,in addition to 200DMA should be our guiding light.
How we have opened?
On expected lines.Minimum of 5186 has been met Next target is 5161 or the trendline test--
.png)
How to catch reversal?
Some people use negative divergence,some use closing above/below 5 hr.ema.I start by hour candle and build upon it by observing closing below/above 5 hr ema.
Now that we have met the minimum for downmove,higher high vis-a-vis prev hour candle becomes my benchmark for reversal,to be confirmed by closures above 5 hr.ema.
So should we now use the breach of previous hour's high at 5221.5 as an indication to go long?
Not exactly as the 5 min charts show that this breach would be a small degree corrective to the up,to be followed by a down move below day's low--- so donot go long--
.png)
However a breach of 5336 would be the first indication of going long at dips--
.png)
I would go short with SL at 5247 and target below 5184 for intraday scalp:
.png)
Why Stop loss for shorts at 5247?
Because the upmove from day's low at 5184 is being seen as a small degree corrective -- 3 wave abc--where c can not be more than 1.618*a. As a=5184-5221.3=38.3; c can at the most be 5247. A tick above 5247 would mean a 5 wave form has started from 5184 upwards and that would be the EW confirmation for entering into longs at dips.
.png)
And one should now move one's SL for shorts at 5237.25.
Why?
Look at following chart---possibility of coming up is always alive--
.png)
In this manner intra-day scalpers have to be always on the toes---
And now time to take profit on 50% of shorts--
A look at the down move from 5243 so far(12.40 PM)
.png)
So clearly a 5 wave form.
I shall square off all my shorts in 5190-5195 range and look for further patterns.
And while I wait for 5190-95 to sq off my shorts ,I put TSL at 5215:
.png)
5 waves completed at 5191.5
And thus ends the live demo of Intra-day scalp based on EW
.png)
Now the form of the next wave shall decide how we would close. Following chart depicts both the options:
.png)
A three wave up move would mean more downside.
A five wave upmove means bottom found at 5184.
By deductive reasoning,I would say a tick above 5230 would be an indication to go long.
How?
The 5 wave 5243-5188 downmove discussed above should not be retraced by more than 80% ie 42 points. So above 5230 means up and up--keep SLs for long at 5188.
And down it is---
.png)
And back to our channel:
.png)
I would not be taking further short positions now as I believe that we are in last leg of downmove--
which normally ends abruptly.
Wait for an opp to go long.
3.17 PM
EW says targets for downmove met.
5 hr.ema depicted to guide us. closing above it would guide me for going long.
.png)
Also the min charts:
.png)
Following chart,in addition to 200DMA should be our guiding light.
How we have opened?
On expected lines.Minimum of 5186 has been met Next target is 5161 or the trendline test--
.png)
How to catch reversal?
Some people use negative divergence,some use closing above/below 5 hr.ema.I start by hour candle and build upon it by observing closing below/above 5 hr ema.
Now that we have met the minimum for downmove,higher high vis-a-vis prev hour candle becomes my benchmark for reversal,to be confirmed by closures above 5 hr.ema.
So should we now use the breach of previous hour's high at 5221.5 as an indication to go long?
Not exactly as the 5 min charts show that this breach would be a small degree corrective to the up,to be followed by a down move below day's low--- so donot go long--
.png)
However a breach of 5336 would be the first indication of going long at dips--
.png)
I would go short with SL at 5247 and target below 5184 for intraday scalp:
.png)
Why Stop loss for shorts at 5247?
Because the upmove from day's low at 5184 is being seen as a small degree corrective -- 3 wave abc--where c can not be more than 1.618*a. As a=5184-5221.3=38.3; c can at the most be 5247. A tick above 5247 would mean a 5 wave form has started from 5184 upwards and that would be the EW confirmation for entering into longs at dips.
.png)
And one should now move one's SL for shorts at 5237.25.
Why?
Look at following chart---possibility of coming up is always alive--
.png)
In this manner intra-day scalpers have to be always on the toes---
And now time to take profit on 50% of shorts--
A look at the down move from 5243 so far(12.40 PM)
.png)
So clearly a 5 wave form.
I shall square off all my shorts in 5190-5195 range and look for further patterns.
And while I wait for 5190-95 to sq off my shorts ,I put TSL at 5215:
.png)
And thus ends the live demo of Intra-day scalp based on EW
.png)
Now the form of the next wave shall decide how we would close. Following chart depicts both the options:
.png)
A three wave up move would mean more downside.
A five wave upmove means bottom found at 5184.
By deductive reasoning,I would say a tick above 5230 would be an indication to go long.
How?
The 5 wave 5243-5188 downmove discussed above should not be retraced by more than 80% ie 42 points. So above 5230 means up and up--keep SLs for long at 5188.
And down it is---
.png)
And back to our channel:
.png)
I would not be taking further short positions now as I believe that we are in last leg of downmove--
which normally ends abruptly.
Wait for an opp to go long.
3.17 PM
EW says targets for downmove met.
5 hr.ema depicted to guide us. closing above it would guide me for going long.
.png)
Also the min charts:
.png)
guruji,
ReplyDeleteif we do subwave of 5
then 5459-5298 =161 i,5392-5223=169, so 5382 shud be 1.62 of (5459-5298 or 161) 5108.
am i missing something
No in diagonals our guideline is sw5>sw3>sw1(in this case) or sw1>sw3>sw1.The 1.62*168 is for the 5th wave for downmove from 5629 where
Delete(i)=5629-5461
(iii)=5521-5268(not 1.62*(i)
so (v) down from 5459 has to be extended i.e 1.62*168 min
ok guruji . i remember u using 1.62 in diagonal also. so i
Deletewrote it
Absolutely marvellous.. Thank you Sir for the live commentary and why to take longs
ReplyDeleteDear Raghu ji,
ReplyDeletePranam.
Hats off to you my brother. Good luck.
guruji and friends
ReplyDeletehappy holi
and great updates guruji
Happy Holi to all my friends !!!
ReplyDelete