Hi RnE,
Is it in an expanding triangle of a correction? If so, what are the possible implications?
Or is the current correction
a)2 or 4 of an impulse wave
or
b) a or c of a corrective wave?
What are your views? No hurry! I know this is a tough query. So, take your own time!
Cheers!
Babu Kothandaraman
Something interesting about the chart :
The long upside looked like a third, impulsve, and out of a congestion [since May], the run up from around april-may i would think was the first, then came that 'wavy' downside for just a few days.. i would think 4th. So i wait for the 5th to come in.
At the time i drew those lines it was very speculative, around the 1st of Nov with the gap up, came the hint of a 5th, thats about when i drew the upper trendline (very speculative at the time, i wouldnt give much credit to it myself)
What happend on the last run-up was very intersting, i havnt seen this in the markets myself but I read in Steve Nison's "Japanese Candlestick Charting Techniques" about "Three Gaps up" in a single run being the sign of a possible reversal, add to that its a (likely) 5th.
I just ran a cursory look around to see what i could find on it:
From
http://www.learning-to-invest.com/Candlesticks-the-importance-of-Gaps--51.html
"Previously, when talking about Sakatas theory, I also mentioned Three Gaps Up and Three Gaps Down formations. Usually the third Gap Up is good time to sell or sell short accordingly. Note however that these gaps do no necessarily need to be one after another, there can be couple of non-gaps between them as well. "
Re. the wave count.. i need to read up on it too. Ive been focused so far only on impulses, Correction-Impulse turn-arounds and the rules of Impulses [4th does not enter the 1st in cash mkts etc]
Need to brush up on the corrections... specifically ill be looking for :
Corrective rules.. how far can ABC or corrections go below the fifth and still be called corrections. (Theres a doc file on rules i gathered from a source, posted it with the RAR file on this thread, will try n go thru that)
But till price enters the green / red trendlines it could bounce up i think.
Re. Expanding wedge, also a possibility.... something like that did happen ..
Cipla Early-Mid 2009.. pay no heed to my counts marked on the chart then, they were all off for sure, but the last run up to the 5th (i think) forms a leg in the expanding wedge, after which it fell sharp and completed the expanding wedge.
Thanks for asking, makes me think harder
Heres the chart, Cipla 2009.
