EURO / INDIAN RUPEEGiá lên
Update 8-EUR/INR
It's pretty long since the last update "Update 7-EUR/INR" and all the targets are achieved and lets check how it had happened.
As stated in "Update 7-EUR/INR", the price action broke below 86.8936 on 22 Oct 2021 09:30 (IST) which is before 22 Oct 2021 11:30 (IST) and indicated that the reversal was faster than wave 5 (the ending diagonal). Check out the Chart 1 for details.
Chart 1
Violet ray indicates the price within the "Reversal?" area which broke the red ray (86.8936 the starting point of Wave 5) before 22 Oct 2021 11:30 (IST) faster than wave 5.
What had happened after that?
Price action had resolved itself as shown in chart 2
Chart 2
Just ignore the labels. Without labels price action looks as show in chart 3.
Chart 3
How to label it then?
Firstly, it is important to identify wave reversal with high momentum to confirm reversal in direction of price action. Chart 4 below indicates that the recent wave had taken time greater than the previous wave but yet to break above pervious wave. This indicates that the correction is not yet over and the direction of momentum is yet to the downside.
Chart 4
Now, let’s assess the different possibilities of labelling.
Alternate-1: Is it 12345 as shown in Chart 5?
Chart 5
No, because wave 3 is the smallest as shown in Chart 6
Chart 6
Alternate-2: Is this WXYXZ as shown in Chart 7?
Chart 7
Possibly Yes, but this is a plan for a big drop in EUR upon completion of ongoing correction. So, this alternate-2 cannot be considered until the time answers.
Alternate-3: Is this WXY as indicated in chart 8?
Chart 8
Most possibly yes if the Wave B in Y ends by breaking below 83.5 before March 21, 2022.
Alternate-4: Whether the Wave Y a terminal triangle as shown in Chart 9?
Chart 9
Much possibly Yes and this structure can indicate exhaustion of downward move. This structure might fit into proportionality concept with Wave W.
But all these alternatives-2,3 and 4 are long term views and should be granted to Time for answering.
And what for now?
Wave C in Y indicated in Chart 9 is zoomed into 1H resolution and it seems to be like in Chart 10.
Chart 10
It is an ABC wave and its end was indicated by the price by breaking above wave 4 at 84.74 faster than wave 4.
So what to expect? Expect price to go up now. How?
Chart 11
Chart 11 shows that the price action which broke above wave 4 had formed wave A. This wave A was corrected by a triangle forming wave B. Wave B end is marked by the price breaking above 84.3643 faster than wave e in triangle. Now it is wave C and the trade plan is as follows:
Trade setup:
Position: Long
Entry zone: 84.2 to 84.6 (experts can choose their own entry points other than this)
Stop loss: 83.9
Target zone: 85.0 to 85.2
Target period: Before 14 Jan 2022
Keep watching this space for further updates on trading and managing the trade.
To understand the concepts behind my analysis please checkout the linked idea. Happy trading :)
As stated in "Update 7-EUR/INR", the price action broke below 86.8936 on 22 Oct 2021 09:30 (IST) which is before 22 Oct 2021 11:30 (IST) and indicated that the reversal was faster than wave 5 (the ending diagonal). Check out the Chart 1 for details.
Chart 1
Violet ray indicates the price within the "Reversal?" area which broke the red ray (86.8936 the starting point of Wave 5) before 22 Oct 2021 11:30 (IST) faster than wave 5.
What had happened after that?
Price action had resolved itself as shown in chart 2
Chart 2
Just ignore the labels. Without labels price action looks as show in chart 3.
Chart 3
How to label it then?
Firstly, it is important to identify wave reversal with high momentum to confirm reversal in direction of price action. Chart 4 below indicates that the recent wave had taken time greater than the previous wave but yet to break above pervious wave. This indicates that the correction is not yet over and the direction of momentum is yet to the downside.
Chart 4
Now, let’s assess the different possibilities of labelling.
Alternate-1: Is it 12345 as shown in Chart 5?
Chart 5
No, because wave 3 is the smallest as shown in Chart 6
Chart 6
Alternate-2: Is this WXYXZ as shown in Chart 7?
Chart 7
Possibly Yes, but this is a plan for a big drop in EUR upon completion of ongoing correction. So, this alternate-2 cannot be considered until the time answers.
Alternate-3: Is this WXY as indicated in chart 8?
Chart 8
Most possibly yes if the Wave B in Y ends by breaking below 83.5 before March 21, 2022.
Alternate-4: Whether the Wave Y a terminal triangle as shown in Chart 9?
Chart 9
Much possibly Yes and this structure can indicate exhaustion of downward move. This structure might fit into proportionality concept with Wave W.
But all these alternatives-2,3 and 4 are long term views and should be granted to Time for answering.
And what for now?
Wave C in Y indicated in Chart 9 is zoomed into 1H resolution and it seems to be like in Chart 10.
Chart 10
It is an ABC wave and its end was indicated by the price by breaking above wave 4 at 84.74 faster than wave 4.
So what to expect? Expect price to go up now. How?
Chart 11
Chart 11 shows that the price action which broke above wave 4 had formed wave A. This wave A was corrected by a triangle forming wave B. Wave B end is marked by the price breaking above 84.3643 faster than wave e in triangle. Now it is wave C and the trade plan is as follows:
Trade setup:
Position: Long
Entry zone: 84.2 to 84.6 (experts can choose their own entry points other than this)
Stop loss: 83.9
Target zone: 85.0 to 85.2
Target period: Before 14 Jan 2022
Keep watching this space for further updates on trading and managing the trade.
To understand the concepts behind my analysis please checkout the linked idea. Happy trading :)
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