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| Chart 1 |
This is my
working count (Chart 1) so far. It will be, till we take out the top
marked at (b). But there are a couple of different possibilities, marked
on the charts below. Both the possibilities below are that of possible
triangles, but in different waves. The details are discussed below.
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| Chart 2 |
This chart
(Chart 2) shows a possible triangle in wave {b} of (b). Which means that
once it is complete we will have a thrust from the triangle up wards,
in wave {c} of (b). Once this wave (b) is done, we should come down, to
complete wave (c).
Another way to
count the price action is shown below (Chart 3). Here we may be forming a
triangle in wave [4] itself, and may be pretty close to completing it.
We have to come down a little in wave (e) of [4] before we embark on a
thrust from the triangle in wave [5].
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| Chart 3 |
So in
conclusion, we have two of three counts (Charts 2 and 3) suggesting an
up move once the respective triangles are complete, whereas one count
(Chart 1) suggesting immediate down move from current levels. The real
question however is, how we trade this info at hand? I would share what I
would do in such a scenario. Both the triangle scenarios shown above
would get violated below 55.065, so as long as this level is protected,
the triangle scenarios are possible. I will wait till 55.065 is taken
out to initiate short positions, and keep stop loss for earlier short
positions at 56.35. To initiate a long position I would wait for the
market to come near the lower trend line of the triangles around
55.35-55.25 levels, and then keep a stop loss and reverse of 55.065, to play from the short side if the triangle scenarios are violated.
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