Attached is a 3min chart of the NIFTY Sept. futures. The move started yesterday from DP support on the 15min and 60min charts - as you teach, today I took the TS2 buy on the 3min chart which resulted in 4.6R. With apparent resistance (covergence of multiple MA's) on the 60min charts, divergence of the STF on the 3 min chart took the DP trade on the 3 min chart - STF was strong at the first target, ran with the ATR stop and finally exited near the days low at the DP from the previous major swing low for +16R Profit. An amazing day overall of +20.6R Profit.
Jatinder, Private Trader
If Wave 4 retraces into the area of Wave 1, then it cannot be considered a Wave 4, and the current wave structure must be reconsidered.
Here Wave 4 has retraced back below the high of Wave 1, which would be in breach of the third rule, so this wave count is incorrect and must be re-considered.