Tuesday, September 20, 2011

Nifty Sep 20 EW trend lines...

ASSUMING we are in Wave 4,
4.A = 4720-5170 = 450 = 7 days
4.B = 5170-4910 = 260 = 58% = 3 days
Expected 4.C = 5190 ( 61%*A ), 5360 ( A ) = 5 days
4.C.a=4910-5145=235
4.C.b=5145-5020=125 = 53%*A
4.C.c=5165 ( 62%*a ), 5255 ( a ), 5400 ( 1.62*A )
Wave 3 was 1000 points and 23 days.
Wave 4 is usually .38 of Wave 3 ( 380 points ) and same or more timeline than Wave 3.
If Wave 4 exceeds 5320 ( which is 50% of Wave 3 ), Wave 5 failure is possible.
So to me, if in 2 days we get to 5250, then 4.C and 4.A are same timeline
and 4.C covered good amount of 4.A. But Wave 4 will be short by 6 days when compared
to Wave 3. So possibility that we could meander in 4.C.c.(iv) for a long time ( 2-3 days ).
These are just my thoughts. And this could be off by a long margin too. DONT TRADE BASED ON THESE.

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