None is a valid wolfe wave. There are some precise requirements for a wolfe wave:
1. The peaks of the zig-zag pattern should lie on a straight line. Simmilarly for a trough. They should not break through the straight line.
2. The straight lines containing the peaks and the troughs should either converge or at the most be parallel but never diverge.
For your red channel, the zig-zag lines pierce through the channel line. So blue line is not valid. Regarding purple, again, it's also not valid, because a well formed trendline is missing.
Regarding your querry on gaps, I suggest you to study more on gap analysis. Just go to "w w w. s t o c k c h a r t s . c o m" and read on gaps, their significance and etc.
And lastly, NIFTY does follow technicals.
HTH
Regards
djsinha
1. The peaks of the zig-zag pattern should lie on a straight line. Simmilarly for a trough. They should not break through the straight line.
2. The straight lines containing the peaks and the troughs should either converge or at the most be parallel but never diverge.
For your red channel, the zig-zag lines pierce through the channel line. So blue line is not valid. Regarding purple, again, it's also not valid, because a well formed trendline is missing.
Regarding your querry on gaps, I suggest you to study more on gap analysis. Just go to "w w w. s t o c k c h a r t s . c o m" and read on gaps, their significance and etc.
And lastly, NIFTY does follow technicals.
HTH
Regards
djsinha
Just started looking into charts from technical perspective
Please guide ...
Is this a valid wolf wave ? If yes which 1 is correct ? (blue or green/purple)
How does this work from here on ? (after achieving blue which is already done or 3220-50)
Theory says this is a bullish trend so at what level it comes back to bearish one (2820 ?)
There was negligible volume between 2800 and 2900 in last down/up rally due to gaps. What does this indicate people want to be below 2800 (bears) and above 2900 (bulls) ?
Does NIFTY follow technicals as big stocks without much of volume can affect its trend easily add INR 19,45,22,787 more in ONGC and get 15 points or 27,35,761,83 in RELIANCE to get 8.3 points. Yesterday RELIANCE added 25 points.
Does it make sense to analyze NIFTY ?
Lot of doubts , your suggestions will really help me to understand this further
Please guide ...
Is this a valid wolf wave ? If yes which 1 is correct ? (blue or green/purple)
How does this work from here on ? (after achieving blue which is already done or 3220-50)
Theory says this is a bullish trend so at what level it comes back to bearish one (2820 ?)
There was negligible volume between 2800 and 2900 in last down/up rally due to gaps. What does this indicate people want to be below 2800 (bears) and above 2900 (bulls) ?
Does NIFTY follow technicals as big stocks without much of volume can affect its trend easily add INR 19,45,22,787 more in ONGC and get 15 points or 27,35,761,83 in RELIANCE to get 8.3 points. Yesterday RELIANCE added 25 points.
Does it make sense to analyze NIFTY ?
Lot of doubts , your suggestions will really help me to understand this further
