-------------"Markets can stay illogical much longer than you can stay solvent"------------
Everyone active in stock markets would have not only heard but also felt the above saying. And it would remain like this---
RSI-14 is the most popular of the momentum-gauze used among market followers and Price-RSI divergence is the most popular tool to locate beginning of reversals/retracements --- particularly in overbought/oversold zones.
On 31.7.2012, I was labelling the ICICI chart as follows:
.png)
The negative Price-RSI divergence and falling RSI from overbought zone were inviting me to initiate shorts. So tried to see if a 5 wave Impulse is over and broadly(as the chart above shows) that also looked overand the red candle at the top was also saying that the fall would start---However before taking the plunge I decided to have a look at the Hour chart particularly for the last subwave--901-973
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And as the Hour Chart clearly showed that this 901-973 was a 3 wave form,I had to wait for it to complete its 5 wave form. And despite the RSI on Hour chart also showing a move-down from overbought zone,I desisted from initiating shorts as the last wave-form was incomplete.
To cut the long story short---from 31-7-2012 to this day 23.8.2012 it has taken 14 more sessions for me to convince myself that yes !!! now the 5 wave Impulse to the up has got completed with the last subwave(5th) playing out a 3x3x3x3x3 diagonal.
.png)
.png)
Everyone active in stock markets would have not only heard but also felt the above saying. And it would remain like this---
RSI-14 is the most popular of the momentum-gauze used among market followers and Price-RSI divergence is the most popular tool to locate beginning of reversals/retracements --- particularly in overbought/oversold zones.
On 31.7.2012, I was labelling the ICICI chart as follows:
.png)
The negative Price-RSI divergence and falling RSI from overbought zone were inviting me to initiate shorts. So tried to see if a 5 wave Impulse is over and broadly(as the chart above shows) that also looked overand the red candle at the top was also saying that the fall would start---However before taking the plunge I decided to have a look at the Hour chart particularly for the last subwave--901-973
.png)
And as the Hour Chart clearly showed that this 901-973 was a 3 wave form,I had to wait for it to complete its 5 wave form. And despite the RSI on Hour chart also showing a move-down from overbought zone,I desisted from initiating shorts as the last wave-form was incomplete.
To cut the long story short---from 31-7-2012 to this day 23.8.2012 it has taken 14 more sessions for me to convince myself that yes !!! now the 5 wave Impulse to the up has got completed with the last subwave(5th) playing out a 3x3x3x3x3 diagonal.
.png)
And so shorting ICICI bank at current levels with stop-loss at 983 and Ist Target at 900 is another Jackpot Trade idea that I am sharing with you.
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EOD 5.9.2012
While I got shaken off by the trigger(false) of Stop-loss for shorts at 983---it went to 988 to shake-off less confident people like me--- the call has proved to be a real Jackpot.
It may very well continue the downslide upto 860
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