Bank Nifty Corrective Patterns: Triangle, Flat & W-X-Y-X-Z
Summarized Points to Watch:
NOTE: Symmetry in sub-waves is crucial for a triangle pattern, meaning the waves should have balanced length and duration. If the wave ((E)) in your chart becomes too short or too long, it creates asymmetry that may question the pattern’s validity. If wave ((E)) ends abruptly without touching the expected trendline, it could also signal potential pattern failure.
Flat Correction Pattern (3-3-5) in Bank Nifty
This pattern comprises three waves: Wave A (3 sub-waves), Wave B (3 sub-waves), and Wave C (5 sub-waves), indicating a temporary trend reversal.
W-X-Y-X-Z Complex Correction in Bank Nifty:
This complex pattern involves five waves (W, X, Y, X, Z), representing a multi-phase consolidation, with Wave Z potentially signaling the end of the correction and a possible trend continuation.
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Approaches to Catching Wave (C) Using the Patterns:
Triangle Pattern:
After the triangle completes, the impulsive Wave (C) generally initiates. You can look for an entry near the end of Wave (E) and monitor for confirmation with a breakout and increased volume.
Flat Correction (3-3-5):
In a flat correction, after Wave (B), which is a 3-wave structure, Wave (C) follows with 5 impulsive waves. Identifying the end of Wave (B) gives you the opportunity to capture the significant move in Wave (C).
W-X-Y-X-Z Complex Correction:
In this complex corrective pattern, the impulsive Wave (C) typically starts after the end of Wave (Z). Due to the complex structure, patience is essential, and confirmation usually comes only after Wave (Z) completes.
- 52,493 Level (Wave ((C))): If Wave ((E)) surpasses this level, the triangle pattern may fail.
- Lower Trendline Support: A breakdown below this trendline before completing Wave ((E)) could invalidate the pattern.
- Wave Length Symmetry: An imbalanced Wave ((E)) suggests potential pattern weakness.
- Volume Behavior: A sudden spike during Wave ((E)) may indicate possible failure.
- Internal Corrective Structure: Wave ((E)) should consist of three sub-waves to maintain pattern integrity.
NOTE: Symmetry in sub-waves is crucial for a triangle pattern, meaning the waves should have balanced length and duration. If the wave ((E)) in your chart becomes too short or too long, it creates asymmetry that may question the pattern’s validity. If wave ((E)) ends abruptly without touching the expected trendline, it could also signal potential pattern failure.
Flat Correction Pattern (3-3-5) in Bank Nifty
This pattern comprises three waves: Wave A (3 sub-waves), Wave B (3 sub-waves), and Wave C (5 sub-waves), indicating a temporary trend reversal.
W-X-Y-X-Z Complex Correction in Bank Nifty:
This complex pattern involves five waves (W, X, Y, X, Z), representing a multi-phase consolidation, with Wave Z potentially signaling the end of the correction and a possible trend continuation.
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Approaches to Catching Wave (C) Using the Patterns:
Triangle Pattern:
After the triangle completes, the impulsive Wave (C) generally initiates. You can look for an entry near the end of Wave (E) and monitor for confirmation with a breakout and increased volume.
Flat Correction (3-3-5):
In a flat correction, after Wave (B), which is a 3-wave structure, Wave (C) follows with 5 impulsive waves. Identifying the end of Wave (B) gives you the opportunity to capture the significant move in Wave (C).
W-X-Y-X-Z Complex Correction:
In this complex corrective pattern, the impulsive Wave (C) typically starts after the end of Wave (Z). Due to the complex structure, patience is essential, and confirmation usually comes only after Wave (Z) completes.
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