Monday, January 30, 2012

Important to Honour the Trigger Sequence!

This post is a result of a gr8 Q from my buddy YG... The Q: Why shud we worry about price closing above 5DHEMA or below 5DLEMA . If 5-10DEMA x-over happens, then the prev condition is a given , isnt it ? Ans: The veracity of the query is indeed honourable in case where we have a SUDDEN FALL after a NARROW RANGE OF CORRECTIVE Waves. In such a case 5-10DEMA x-over will happen before price closes above or below 5DHEMA or 5DLEMA But, but... In CORRECTIVES.. we can have many instances, where the same NARROW RANGE MOVES via Wave B, cause 5-10DEMA x-overs first, close BELOW 5DLEMA , but only to WHIPSAW up via wave C & SL out the trade As a case in point, have attached the chart for BIOCON.. pls see it in detail. I have left many many things for all of of u to ponder on.. each STOCK has its own QUIRK, its own distinct IDENTITY (based on how QUICKLY, or SLOWLY it moves from IMPULSES to CORRECTIVES & back). If u can find, wot i hope u will find, this one is a GOLDMINE in the making :-) cheers SMO

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