The basic idea is to separate trend movements from counter trend movements.
A cwave is a fake higher high or lower low which results in a trap.
Step1:Watch your macd
Step2:Watch your moving averages
IF these 2 are saying down then that new high you just saw might be a fake one :)
Recent examples can be found in glaxo/bajajauto.
Original post by me a long long time ago
Finally finished coding the afl for the abc detector
One interesting finding was that the market rarely gives abc setups on the daily charts.
Instead its mostly A down and then up.
Intraday the abc division might be present.
If however you do see an abc setup you should look to play it because the risk/reward ratio is quite favorable.
P.S nifty formed a low at the 9ema this time
shallow correction. Expected correction depth was 3900-3857.
