Nifty 50 futures<\/h2>\n\n\n\nThe Weekly<\/em> Nifty 50 chart<\/h3>\n\n\n\n![\"Nifty](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/08\/Measuring-Gap-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n- General Discussion<\/strong>
- Nifty 50 near measuring gap target so bulls can exit some part of their position, but as the move is strong, bulls expect at least 60% chance of 2nd<\/sup> leg up.<\/li><\/ul>
- Market in bull micro channel so generally more buyers below bars than sellers. When the market is in a bull micro channel, this phase is also known as the breakout phase.<\/li><\/ul>
- Once the market starts trading below prior bars (in a breakout phase) <\/em>then there are higher chances that the market would convert into a tight bull channel, rather than an immediate reversal down (more on this in pro tips)<\/em><\/li><\/ul><\/li>
- Deeper into the price action<\/strong>
- The market had formed 2 consecutive bull bars closing near their high (bar A & B) <\/em>so this was the start of the Buy The Close trend.<\/li><\/ul>
- The market had a breakout above the bear channel (red colored), <\/em>therefore bulls would be expecting the market to reach the top of the channel.<\/li><\/ul>
- Aggressive bears would be shorting the high of bar C, assuming bulls would book some profits as reaching the measuring gap and measured move target.<\/li><\/ul><\/li>
- Patterns<\/strong>
- Market creating breakout gaps on either side (notice the one marked with blue) <\/em>which creates confusion. This is the hallmark of a trading range.<\/li><\/ul>
- Traders would be now looking to buy low sell high and scalp, as this is just a trading range. The market very often forms always in long patterns near trading range top, and always in short patterns near trading range bottom.<\/li><\/ul><\/li>
- Pro Tip <\/strong>[below explanation based on daily chart<\/span>]
- Patterns like an inside-outside-inside bar, inside-inside bar, and outside-outside bar are breakout mode patterns that can work as final flags or as flags depending upon bars to the left. But in general, there are 50-50 chances of a successful breakout to either side.<\/li><\/ul>
- Let\u2019s take an example. Consider the inside-inside bar forming late in trend after buy climax, and now the market is near a strong resistance. So rather than 50-50 chances, there is a greater probability of this inside-inside bar being a final flag rather than a bull flag.<\/li><\/ul><\/li><\/ul>\n<\/div><\/div>\n\n\n\n
The Daily<\/em> Nifty 50 chart<\/h3>\n\n\n\n![\"Nifty](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/08\/Final-Flag-Or-Bull-Flag-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n- General Discussion<\/strong>
- The market on the daily chart is going upside strongly and also leaving breakout gaps open – a sign of the strength of the bulls<\/li><\/ul>
- From the most recent bars, the market has never seen a significant pullback, so this is just a tight bull channel. Traders should be only looking to buy until bears get strong consecutive bear bars<\/li><\/ul><\/li>
- Deeper into price action<\/strong>
- From most recent bars Nifty 50 never formed strong and big consecutive bear bars, therefore traders should always look to buy.<\/li><\/ul>
- Aggressive bears would be selling the low of the latest bar with a wide stop, assuming this inside-outside-inside bar is the final flag.<\/li><\/ul>
- If the market starts to pull back to the downside, then bulls would be still looking to buy on a High 1 and High 2 as they know there are 60% chances of 2nd<\/sup> leg up. (Therefore even a 1:1 risk to reward would result in positive traders\u2019 equation)<\/em>.<\/li><\/ul><\/li>
- Patterns<\/strong>
- Every Wedge Top is a Higher High Double Top (HH DT)<\/em>.<\/li><\/ul>
- Always remember that if the wedge top fails and the market starts resuming up then the minimum bulls want is a measured move up based upon DT height (shown in green color)<\/em>.<\/li><\/ul>
<\/a><\/figure>\n\n\n\n\n
- General Discussion<\/strong>
- Nifty 50 near measuring gap target so bulls can exit some part of their position, but as the move is strong, bulls expect at least 60% chance of 2nd<\/sup> leg up.<\/li><\/ul>
- Market in bull micro channel so generally more buyers below bars than sellers. When the market is in a bull micro channel, this phase is also known as the breakout phase.<\/li><\/ul>
- Once the market starts trading below prior bars (in a breakout phase) <\/em>then there are higher chances that the market would convert into a tight bull channel, rather than an immediate reversal down (more on this in pro tips)<\/em><\/li><\/ul><\/li>
- Deeper into the price action<\/strong>
- The market had formed 2 consecutive bull bars closing near their high (bar A & B) <\/em>so this was the start of the Buy The Close trend.<\/li><\/ul>
- The market had a breakout above the bear channel (red colored), <\/em>therefore bulls would be expecting the market to reach the top of the channel.<\/li><\/ul>
- Aggressive bears would be shorting the high of bar C, assuming bulls would book some profits as reaching the measuring gap and measured move target.<\/li><\/ul><\/li>
- Patterns<\/strong>
- Market creating breakout gaps on either side (notice the one marked with blue) <\/em>which creates confusion. This is the hallmark of a trading range.<\/li><\/ul>
- Traders would be now looking to buy low sell high and scalp, as this is just a trading range. The market very often forms always in long patterns near trading range top, and always in short patterns near trading range bottom.<\/li><\/ul><\/li>
- Pro Tip <\/strong>[below explanation based on daily chart<\/span>]
- Patterns like an inside-outside-inside bar, inside-inside bar, and outside-outside bar are breakout mode patterns that can work as final flags or as flags depending upon bars to the left. But in general, there are 50-50 chances of a successful breakout to either side.<\/li><\/ul>
- Let\u2019s take an example. Consider the inside-inside bar forming late in trend after buy climax, and now the market is near a strong resistance. So rather than 50-50 chances, there is a greater probability of this inside-inside bar being a final flag rather than a bull flag.<\/li><\/ul><\/li><\/ul>\n<\/div><\/div>\n\n\n\n
The Daily<\/em> Nifty 50 chart<\/h3>\n\n\n\n
<\/a><\/figure>\n\n\n\n- General Discussion<\/strong>
- The market on the daily chart is going upside strongly and also leaving breakout gaps open – a sign of the strength of the bulls<\/li><\/ul>
- From the most recent bars, the market has never seen a significant pullback, so this is just a tight bull channel. Traders should be only looking to buy until bears get strong consecutive bear bars<\/li><\/ul><\/li>
- Deeper into price action<\/strong>
- From most recent bars Nifty 50 never formed strong and big consecutive bear bars, therefore traders should always look to buy.<\/li><\/ul>
- Aggressive bears would be selling the low of the latest bar with a wide stop, assuming this inside-outside-inside bar is the final flag.<\/li><\/ul>
- If the market starts to pull back to the downside, then bulls would be still looking to buy on a High 1 and High 2 as they know there are 60% chances of 2nd<\/sup> leg up. (Therefore even a 1:1 risk to reward would result in positive traders\u2019 equation)<\/em>.<\/li><\/ul><\/li>
- Patterns<\/strong>
- Every Wedge Top is a Higher High Double Top (HH DT)<\/em>.<\/li><\/ul>
- Always remember that if the wedge top fails and the market starts resuming up then the minimum bulls want is a measured move up based upon DT height (shown in green color)<\/em>.<\/li><\/ul>
- Patterns<\/strong>
- If the market starts to pull back to the downside, then bulls would be still looking to buy on a High 1 and High 2 as they know there are 60% chances of 2nd<\/sup> leg up. (Therefore even a 1:1 risk to reward would result in positive traders\u2019 equation)<\/em>.<\/li><\/ul><\/li>
- Aggressive bears would be selling the low of the latest bar with a wide stop, assuming this inside-outside-inside bar is the final flag.<\/li><\/ul>
- From most recent bars Nifty 50 never formed strong and big consecutive bear bars, therefore traders should always look to buy.<\/li><\/ul>
- The market on the daily chart is going upside strongly and also leaving breakout gaps open – a sign of the strength of the bulls<\/li><\/ul>
- General Discussion<\/strong>
- Let\u2019s take an example. Consider the inside-inside bar forming late in trend after buy climax, and now the market is near a strong resistance. So rather than 50-50 chances, there is a greater probability of this inside-inside bar being a final flag rather than a bull flag.<\/li><\/ul><\/li><\/ul>\n<\/div><\/div>\n\n\n\n
- Patterns like an inside-outside-inside bar, inside-inside bar, and outside-outside bar are breakout mode patterns that can work as final flags or as flags depending upon bars to the left. But in general, there are 50-50 chances of a successful breakout to either side.<\/li><\/ul>
- Market creating breakout gaps on either side (notice the one marked with blue) <\/em>which creates confusion. This is the hallmark of a trading range.<\/li><\/ul>
- The market had a breakout above the bear channel (red colored), <\/em>therefore bulls would be expecting the market to reach the top of the channel.<\/li><\/ul>
- Deeper into the price action<\/strong>
- Once the market starts trading below prior bars (in a breakout phase) <\/em>then there are higher chances that the market would convert into a tight bull channel, rather than an immediate reversal down (more on this in pro tips)<\/em><\/li><\/ul><\/li>
- Market in bull micro channel so generally more buyers below bars than sellers. When the market is in a bull micro channel, this phase is also known as the breakout phase.<\/li><\/ul>
- Nifty 50 near measuring gap target so bulls can exit some part of their position, but as the move is strong, bulls expect at least 60% chance of 2nd<\/sup> leg up.<\/li><\/ul>