Lets Discuss today something on waves. The share prices generally moves in waves. Impulsive waves are quick in direction of trend while others are complex where price remains in some definite range before decisive directional move.
During complex/consolidation waves, we need to check whether there is accumulation or distribution. This thing is not straight forward so best is to react when trend line breaks in either direction.
Lets have look at examples of such moves:
GRUH FINANCE:
Starting from Trending move, the wave started first correction for few months followed by breakout to start first impulsive move in the direction of trend. Made high of 320+ in JAN '15 and again in consolidation phase. Did smaller wave breakout and did some move. Again on the verge of breakout. This can be start of new wave if price sustains.
JK Tyre:
JK Tyre is also in consolidation from last 8-9 months with some negative bias. A rise in volume was seen in last upside and now price range narrowing before break out or break down. One can keep close eye to find which direction it goes.
Note : The above charts are shared for learning purpose and not for any buying/selling recommendation.
During complex/consolidation waves, we need to check whether there is accumulation or distribution. This thing is not straight forward so best is to react when trend line breaks in either direction.
Lets have look at examples of such moves:
GRUH FINANCE:
Starting from Trending move, the wave started first correction for few months followed by breakout to start first impulsive move in the direction of trend. Made high of 320+ in JAN '15 and again in consolidation phase. Did smaller wave breakout and did some move. Again on the verge of breakout. This can be start of new wave if price sustains.
JK Tyre:
Note : The above charts are shared for learning purpose and not for any buying/selling recommendation.
No comments:
Post a Comment