EW , Trendlines and Momentum

I keep telling all my trader friends to never see EW in seclusion.
When a Corrective is capable of retracing 23.4% to 99.9% of Motive; and
an extended 3rd wave is capable of doing 162% to 425% of Ist wave,
THEN Momentum becomes the closest friend of the Trader to gauze the wave;
AND Trendlines,in words of my friend HD, are like toll-gates where the wave is most likely to stop(if not reverse)and move ahead after paying the toll.And to me,it is not only the lines joining H-H,L-L,or L-H that define a trendline but also the MAs.I use 9,20,50,100 & 200 DMAs though of-late I see some of my friends using 8,13,34 etc.

Now,as per my EW Counts,we have reached a very important point : A threshold




And how do we stand as per the parameters of Momentum and Trendlines?



Thus,not only the trendline joining the recent highs of 5400 & 5100 has been breached decisively( closing has been above it for four days now) but also on friday we have,for the first time closed above the 50 DMA as well.




A look at the popular Momentum indicaters on Daily Charts shows that:
1.Higher High & Higher low continues;
2.Daily close on Friday was above 8,13,34 DEMA;
3.MACD & RSI show no sign of let-up in up-momentum;
4.STS is the only indicater in Daily Chart that has shown a minor reversal;
5.Formation of doji candles for last three days with a very small daily trading range also is a give-way that up-momentum is losing steam;
6.The 9 day Bolinger Band has been acting as a barrier for last three days.
But no signs of reversal so far.

And what does the Hourly Charts say on same parameters?



And here the first signs of reversal can be seen.
But Hourly Charts can not be given more credence than the Daily Charts and the Indicaters here need confirmation from Daily Charts.

Conclusion:
Same as beginning.A threshold as per EW but no confirmation from Momentum & Trendlines as yet.So take your positions prudently. Personally I have initiated shorts with a SL at 4899.Targets,as per individual appetite, being 4805 onwards as we proceed.

Raghu