#HDFC forms a triangle as there are 5 corrective waves in a triangle of the Elliott wave pattern. But playing a triangle is not as easy as it seems.
A triangle can break at any side, i.e.
1. The full move can be a triangle 3,3,3,3,3
2. The full move is ABC in which B can be a triangle.
How to trade this triangle?
We can make a short position in HDFC from here. The stop loss will be 2286. If HDFC will cross 2286, this means the whole move is not a triangle correction but the B wave in the ABC zigzag is the triangle.
Now, HDFC can go 2360 after that we can short again because this time the zigzag with the triangle in a B wave is going to retrace fully.
The analysis I gave is based on the Elliott wave principle. This is the advantage of the Elliott wave that we can play counter move when there are only two possibilities left.
The colour Orange Wave count and orange line is the first possibility and the Red line and count is the alternate possibility.
Thanks
Traders Mantra
A triangle can break at any side, i.e.
1. The full move can be a triangle 3,3,3,3,3
2. The full move is ABC in which B can be a triangle.
How to trade this triangle?
We can make a short position in HDFC from here. The stop loss will be 2286. If HDFC will cross 2286, this means the whole move is not a triangle correction but the B wave in the ABC zigzag is the triangle.
Now, HDFC can go 2360 after that we can short again because this time the zigzag with the triangle in a B wave is going to retrace fully.
The analysis I gave is based on the Elliott wave principle. This is the advantage of the Elliott wave that we can play counter move when there are only two possibilities left.
The colour Orange Wave count and orange line is the first possibility and the Red line and count is the alternate possibility.
Thanks
Traders Mantra
