Trend was up as NS (Nifty Spot) was above DHema. NS made a high in the morning near 7662 and corrected in an a-b-c form within a channel. Around 1:45pm market completed the correction and started the move up. The whole thing appears like the impulse with 1-2-3-4 are done and 5th is pending. The complete move is started from 7480 area. If wave 5 = wave 1 then this may move up to 7627 + (7566-7480) = 7713.
I have entered the trade near 7651 after the NS broke the line connecting the top of 3rd wave and the top of wave 'b'. Ideally I should have entered near the channel bottom near 7630 area with a smaller stop loss. This should have allowed me to take higher quantity compared to my actual entry point where my SL has to be big. Hence this reduced the number of quantity that I could buy.
This is in continuation with the weekend post "How not to trade"
Nifty 5 min chart :
It is observed that at the end of the day the target for the 5th was achieved. Hence the trade should have been closed. However the stop loss was on trailing basis and market has not yet come down from the top before the close. Hence the trade was not closed. Long is carry forward to the next day. Elliott wave observation perspective this is not a wise move as the 5th was over unless it is going to be sub-dividing. (the bigger 3rd wave is still on, if this minor 5 waves are done, then at the maximum the correction might go near 80 points - bigger than the two corrections which are part of the just concluded 5 waves 40 & 35. )
I have entered the trade near 7651 after the NS broke the line connecting the top of 3rd wave and the top of wave 'b'. Ideally I should have entered near the channel bottom near 7630 area with a smaller stop loss. This should have allowed me to take higher quantity compared to my actual entry point where my SL has to be big. Hence this reduced the number of quantity that I could buy.
This is in continuation with the weekend post "How not to trade"
Nifty 5 min chart :
It is observed that at the end of the day the target for the 5th was achieved. Hence the trade should have been closed. However the stop loss was on trailing basis and market has not yet come down from the top before the close. Hence the trade was not closed. Long is carry forward to the next day. Elliott wave observation perspective this is not a wise move as the 5th was over unless it is going to be sub-dividing. (the bigger 3rd wave is still on, if this minor 5 waves are done, then at the maximum the correction might go near 80 points - bigger than the two corrections which are part of the just concluded 5 waves 40 & 35. )
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