Pre-Market
One of my friends has mailed me to say that now my blog has less space on EW and more on channels and divergences--
EW patterns offer huge "play" of Probabilities and if we donot take help of channels,MAs and divergences,it would be difficult to "place" the wave.
For example,the current downmove is being seen as an Impulse A about which I wrote in yesterday's EOD post:
Q
Although Hour RSI-14 has moved into overbought zone but the Impulsive A's ending point is not discernible:
(i)=5448-5394=54
(ii)=5394-5421=27
(iii)=5421-5382=139* and going strong---although 5365 has been previously seen as a good support/resistance point.
UnQ
This (iii) can extend from 162-425% of(i) and at times may subsume (iv) and (v) also within it. And then as this Impulse may be dotted by gap-downs as well,it would not be possible to locate wave-ends without TLs ,channels,MAs and divergences.
Now we have 50DMA at 5252 and previous resistance zone 5260-5267 which is likely to be a good support now.
I would not be surprised if A finds an end in this zone and B upwards begins from here .
.png)
EOD:
Thus A ended at 50DMA and in typical expiry day fashion exhibiting choppiness shot up to 20DMA.
.png)
I was looking for positive divergence in Hour chart and thus waited for a dip below 5255 to go long and that dip never came--nor did the divergence and so no trade initiated.
A=5448-5255=193
B to retrace 50-75% of A means 5365-5400.
And formwise zig-zag,flat or triangle or even a combination of these three.
.png)
One of my friends has mailed me to say that now my blog has less space on EW and more on channels and divergences--
EW patterns offer huge "play" of Probabilities and if we donot take help of channels,MAs and divergences,it would be difficult to "place" the wave.
For example,the current downmove is being seen as an Impulse A about which I wrote in yesterday's EOD post:
Q
Although Hour RSI-14 has moved into overbought zone but the Impulsive A's ending point is not discernible:
(i)=5448-5394=54
(ii)=5394-5421=27
(iii)=5421-5382=139* and going strong---although 5365 has been previously seen as a good support/resistance point.
UnQ
This (iii) can extend from 162-425% of(i) and at times may subsume (iv) and (v) also within it. And then as this Impulse may be dotted by gap-downs as well,it would not be possible to locate wave-ends without TLs ,channels,MAs and divergences.
Now we have 50DMA at 5252 and previous resistance zone 5260-5267 which is likely to be a good support now.
I would not be surprised if A finds an end in this zone and B upwards begins from here .
.png)
EOD:
Thus A ended at 50DMA and in typical expiry day fashion exhibiting choppiness shot up to 20DMA.
.png)
I was looking for positive divergence in Hour chart and thus waited for a dip below 5255 to go long and that dip never came--nor did the divergence and so no trade initiated.
A=5448-5255=193
B to retrace 50-75% of A means 5365-5400.
And formwise zig-zag,flat or triangle or even a combination of these three.
.png)
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