Bank Nifty:Bow-Tie Diametric pattern nearing it's completion
#Characteristics of Bow-Tie Diametric pattern
*It's a seven legged Elliot / Neo wave corrective pattern
*Wave A=G,B=F,C=E.wave D is connector.
*Wave B takes less time then wave A took to form,and can correct wave A by more then 61.8%.
#Reasons for not considering this entire swing as an impulse/triangle move
*Wave B has retraced wave A more then 61.8%(In an impulse as per Neo wave , wave 2 does not retrace wave 1 by more then 61.8%)
*Wave B took less time then wave A took to form.(In an impulse as per Neo wave , wave 2 takes more time then wave 1 took to form)
*Wave C has not extended wave A by 161.8%.(In an impulse as per Neo wave ,either wave 3 or wave 5 extend's wave 1 by 161.8%)
*Wave D enter's wave A territory.(Here it doesn't)
#Findings/Analysis of this pattern
*currently we are in 5th leg of this 7 leg's pattern.Price wise pattern has achieved wave E has achieved it's 100% extention target of wave C,hence going forward we can expect a downward movement of price in the form of wave F till 35900(100% extention target of wave B).Post wave F we can expect another move on the upside in the form of wave G(final leg of the pattern) which can take price in between 36850-37400,post which we can expect price to drop till 34250-350 depending upon where wave G ends as per post pattern implication of Diametric pattern.
#Possible Action that can be taken as a trader as per current scenario.
*One should start exiting long's in part's if not fully exiting there long's.
*Should wait for wave G to complete post which one can go short on the faster retracement of wave F's low.
PS:Price path discribed here is an ideal path discribed in books as per Neo wave .Reality can defer.
Disclaimer:Trade should not be taken solely on the basis of this analysis.Posting this just for my future reference.
*It's a seven legged Elliot / Neo wave corrective pattern
*Wave A=G,B=F,C=E.wave D is connector.
*Wave B takes less time then wave A took to form,and can correct wave A by more then 61.8%.
#Reasons for not considering this entire swing as an impulse/triangle move
*Wave B has retraced wave A more then 61.8%(In an impulse as per Neo wave , wave 2 does not retrace wave 1 by more then 61.8%)
*Wave B took less time then wave A took to form.(In an impulse as per Neo wave , wave 2 takes more time then wave 1 took to form)
*Wave C has not extended wave A by 161.8%.(In an impulse as per Neo wave ,either wave 3 or wave 5 extend's wave 1 by 161.8%)
*Wave D enter's wave A territory.(Here it doesn't)
#Findings/Analysis of this pattern
*currently we are in 5th leg of this 7 leg's pattern.Price wise pattern has achieved wave E has achieved it's 100% extention target of wave C,hence going forward we can expect a downward movement of price in the form of wave F till 35900(100% extention target of wave B).Post wave F we can expect another move on the upside in the form of wave G(final leg of the pattern) which can take price in between 36850-37400,post which we can expect price to drop till 34250-350 depending upon where wave G ends as per post pattern implication of Diametric pattern.
#Possible Action that can be taken as a trader as per current scenario.
*One should start exiting long's in part's if not fully exiting there long's.
*Should wait for wave G to complete post which one can go short on the faster retracement of wave F's low.
PS:Price path discribed here is an ideal path discribed in books as per Neo wave .Reality can defer.
Disclaimer:Trade should not be taken solely on the basis of this analysis.Posting this just for my future reference.
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.