Wednesday, July 15, 2015

THE PERFECT BULLISH AB =CD PATTERN

For Explaining Perfect Bullish AB=CD Pattern, i have taken weekly chart of CIPLA .

This charts clearly portray ideal bullish AB=CD pattern of which completion points was well defined.

The completion point was coming at 566.4 with the 1.618 BC projection complementing this area at 572.31, thus offering precise PRZ area.

Please also note that each leg down consists of approx 127 points, and took 4 weeks to complete.

This Pattern clearly indicated that critical intermediate support stands around prz area, however it shy way from testing AB= CD completion point.

The stock bottomed after it tested 1.618 BC projection and shown a valid reversal therefrom( Candle stick bullish piercing pattern on the fifth week further confirming the reversal)

This Pattern provides an excellent opportunity to get long in the precise PRZ area, with a stop loss which was few ticks below the precise prz area.

Summary:

AB leg is of 127.53 points consists of 4 bars.
BC leg retraces 68.1 of AB leg.
CD leg consists of 4 bars.
CD leg reversed from 1.618 BC Projection.[572.31]
AB= CD leg were equal time wise and price wise.
AB= CD completion point [ 566.4] was the lower number in the PRZ.

Few links where the you can see how said pattern can be identified beforehand

https://www.linkedin.com/pulse/cipla-probabilty-abcd-pattern-manurika-agarwal?trk=hp-feed-article-title-publish

https://www.linkedin.com/pulse/cipla-abcd-pattern-performance-statistics-manurika-agarwal?trk=mp-author-card

Wednesday, July 8, 2015

TATA MOTORS HARMONIC SET-UP

Jul 8, 2015

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Tatamotors daily chart possess bullish crab pattern with an extended final leg(CD).

BC 3.618 projection is quite close to the most important 1.618 XA extension, thus charts has complementing PRZ AREA .

Extreme BC 3.618 projection comes at 393.36 and 1.618 XA extension is at 379.81. Usually XA leg defines the lower range of PRZ AREA

Price action usually becomes extreme as the pattern approaches it completion point . Extreme price action is quite visible on tata motors chart.

So what to do now :

It is best to wait for the price to test 1.618 XA extension.
Wait for the stock to get stabilized after testing 1.618 extension.
Look for reversal signal near or at PRZ AREA.
If tail closes , extreme ranges , gaping down, price action are seen near prz area, further weakness in the stock can be seen.

https://www.youtube.com/watch?v=5_FtFXoIETk&feature=youtu.be