Disclaimer : This is not a trading Advice, but are my thoughts / discussions with those who are interested in the useful application of Technical Analysis. While due care has been taken in preparing these notes/comments, no responsibility can be or is assumed for any consequences resulting out of acting on them.Trading in Stocks/Commodities/Futures Carry Risk.Consult your financial advisor / SEBI registered Research Analyst only before you trade.This is not a buy / sell recommendation and no Stocks will be discussed.Only broad market trends are discussed here.
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ANY IDEA WHY THE MARKET WENT HIGH AND BROKE THE LOW ?
Diagonal Triangles are powerful patterns which occur as 5 th wave or C waves.They are terminating waves that occur at the end of a pattern.The characteristics of diagonal triangle are
1) They are 3- wave structures.
2) They terminate a move.
3) Wave 4 overlaps wave 1 which is not accepted in an impulse pattern but accepted here.
4) They are basically wedges i.e both the lines encompassing them slant in the same direction.
5) MOST IMPORTANTLY The thrust after the completion of the pattern retraces upto their origin completely in 25 to 50 % of the time they took to form.These are very violent and fast patterns.
Today NIFTY did the same .It was forming a C wave diagonal triangle.It took 26 — 30 minute bars to complete the pattern.It retraced upto the origin i.e 8836 in 10 — 30 minute bars i.e in less than 13 bars ( 50 % time).Once this was over, it collapsed.
DIAGONAL TRIANGLE
NIFTY 30 mins
DevadasNiftyTrader 