In this analysis we are going to look at the pattern formed using the hourly time-frame (trading hours)
(OB vertical) = Price axis = 323.5 points = 1.0
(OP)time axis = 200 hrs = 0.618
323.5 * 0.618 = 199.923 approx. = 200 hrs
(OT) time axis projected = 542 hrs = 1.618
323.5 * 1.618 = 523.423 hrs
The 3 vectors OB, OT and OP effectively describes a complete spiral with OB as the Geometric Mean
square root(200 * 523.423) = 323.549 units = OB price axis
Vector(OC) = 603.21 units
Vector sum(AB + OB) = 255.38 + 353.29 = 608.67 units
This means the magnitude from O to C is equal to the magnitude from O to A subdividing at point B.
OC = AB + OB = 608.67 units
Vector(CD) = 377.802 units
Thus CD effectively corrects the swing OC by 62%
608.67 * 0.62 = 377.375 units
The Area PQRS = 603 X 611 units square (3 X 3 Sq. of 203 units)
Diagonal (1X1 angles) are PR and QS
The current resistance is the 0.618 angle which stopped the advance on 16/02/22 19:30 candle.
Currently the price action has dropped below the 1X1 angle PR and that should be the active resistance,
Stop loss must be reasonably set above this angle.
Also the +144 points level from the base 4215.62 lies at 4359.62, tight stop can be set above this level.
Please note that we have taken the time to discuss this analysis so that traders can carry the analysis further until the time axis TU is completed. Updates would be posted as and when convenient, good luck.
(OB vertical) = Price axis = 323.5 points = 1.0
(OP)time axis = 200 hrs = 0.618
323.5 * 0.618 = 199.923 approx. = 200 hrs
(OT) time axis projected = 542 hrs = 1.618
323.5 * 1.618 = 523.423 hrs
The 3 vectors OB, OT and OP effectively describes a complete spiral with OB as the Geometric Mean
square root(200 * 523.423) = 323.549 units = OB price axis
Vector(OC) = 603.21 units
Vector sum(AB + OB) = 255.38 + 353.29 = 608.67 units
This means the magnitude from O to C is equal to the magnitude from O to A subdividing at point B.
OC = AB + OB = 608.67 units
Vector(CD) = 377.802 units
Thus CD effectively corrects the swing OC by 62%
608.67 * 0.62 = 377.375 units
The Area PQRS = 603 X 611 units square (3 X 3 Sq. of 203 units)
Diagonal (1X1 angles) are PR and QS
The current resistance is the 0.618 angle which stopped the advance on 16/02/22 19:30 candle.
Currently the price action has dropped below the 1X1 angle PR and that should be the active resistance,
Stop loss must be reasonably set above this angle.
Also the +144 points level from the base 4215.62 lies at 4359.62, tight stop can be set above this level.
Please note that we have taken the time to discuss this analysis so that traders can carry the analysis further until the time axis TU is completed. Updates would be posted as and when convenient, good luck.