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It looks like mother Sumi has completed the 4th wave correction, and the ending point of the corrective wave (4) is the starting point of wave (5).
Wave formations:
Waves W is a zigzag correction pattern.
Wave Y triangle.
Wave X could form any correction pattern.
Wave X is smaller than wave W & Y.
Rules and objectives:
1. Double three is a corrective structure that includes more than one type of corrective pattern.
2. It consists of three waves, which are marked W-X-Y.
3. A triangle may occur only as wave Y in a double three.
4. In most cases, double threes are not deep corrections.
5. wave Y usually ends at 100% – 161.8% Fibonacci extension relative to wave W.
6. Wave Y should not go below the 161.8% Extension of Wave W. It shows that the corrective trend is strong.
What are the double threes?
Price picks up momentum when it starts an impulsive wave.
After accomplishing the impulsive wave, it corrects the previous move by a three-wave pattern.
These three waves were not enough to complete correction because of the high momentum & directional power of an impulsive wave.
Price creates another three-wave move to complete the correction by merging through intermediate wave X.[b][/b]
Let me make it easy by explaining and structuring examples.
Double three Structure:
How to labialize it?
Real Example:
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Before:
Alembic was forming in the downtrend channel. The price had completed a double zigzag of primary wave ((4)).
According to the Elliott wave principle, the ending point of the corrective structure is the starting point of the impulse.
I mentioned, “if the alembic breaks up the ending diagonal, it is supposed to reach the targets of 114-123-139 and more.
Click here to read previous research report.
However, the price must confirm the trend by breaking the wave (X).”
After:
Alembic has broken the 4th wave of the ending diagonal, and price got momentum as the 5th wave is the termination wave of the ending diagonal.
12:20 PM,4 January 2022– Alembic pharma reached the first target of 114.
Alembic pharma will retrace on the support trend line, and it will start marching for the 2nd target targets.
Before:
AB capital was undergoing the complex correction of the corrective wave ((iv)). Complex correction W-X-Y accomplished at 96.35 and made a higher low.
Successive highs and lows indicate the starting of an uptrend.
In my previous article, I had written in bold words,” We can see the following targets:
127.70
138.96
151.2
165.9+
Invalidation: breakout of the minor channel”.
Click here to read the previous article.
After:
1:20 PM, 3 January 2022, price broke the high of wave (i) and moved out of the minor parallel channel.
AB capital reached the first target of 127.70 and made a high of 132.55.
If the price gives a strong close above wave X, it’s a good signal for bulls.
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A =0.618 B (38660), I wouldn’t want to see the prices cross and close above 61.8% ratio that is wave 1 at 38426 nearby of A and comes into play as resistance the previous swing high 37581(Wave 4) nearby.
OR
A five-wave decline in the BANK NIFTY , from 41830(Oct.) to 34019(Dec.) is complete. The 34019 low is wave A of a larger five-wave decline. The 2h range chart shows that wave B took the form of a double zigzag pattern, carrying to meet the top (W=0.618 Y) 38660. The previous 37385 resistance zone can again react as resistance. Currently, everything are positive on the day before and the day after, but wave ((Y)) (circle) of C of B can be labeled.
As those familiar with the Wave Counting model know, the B (corrective) wave in a downtrend is a counter-trend price move. In other words, it’s up. When wave B is complete, wave C down follows.
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Daily Chart
Price Action perspective:
After the accomplishment of the lower-low, nifty surged and reached near the previous lower-high point at 17639.
As mentioned in down theory, An upward trend is a series of successively higher highs and higher lows.
Price is weak below 17639, which is a previous lower high.
If nifty creates a swing failure, supply will exceed the demand.
Daily Chart:
Elliott Wave Perspective:
Nifty has completed the corrective wave A of triple zigzag (Z)
If the price gives a consecutive close above (X), it suggests that corrective structure has occurred and an impulsive wave started.
However, the price has given three moves after wave A.
Sub-wave a traveled 100% of wave B.
The price is weak below 17639 and strong above 17650.
In my previous idea, I have mentioned the price can be out of the channel. Sellers can enter after a rejection of the candle on a higher timeframe.
Safe traders can enter when the price enters into the downtrend channel.
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