On the daily chart, price action is contracting\u00a0and the market is attempting to form a falling wedge. As the market is in a trading range price action phase, traders should not swing their positions; instead, they should look for quick exits.<\/p>\n\n\n\n
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\/2023\/03\/Nifty-50-Cup-Handle-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n\n- General Discussion<\/strong>
- The majority of bulls would not be buying at the current levels because bar 1 was a poor follow-through bar after the double bottom attempt, which has diminished their interest.<\/li><\/ul>
- For a double bottom fail and cup & handle top, bears would be selling at or below the low of bar 1.<\/li><\/ul>\n
\n- The majority of bears would maintain their stop at the high of bar 1, as this implies a trading range rather than a second leg down if the market trades above bar 1’s high.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>\n
\n- The Cup and Handle pattern is a breakout mode pattern, which means that the chances of a successful breakout are approximately 50%. In the example shown above, the bars on the left indicate trading range price action, so the chances of a successful breakout are even closer to 50%.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- A bear breakout from a bear channel has a 75% chance of failing after a few bars with the market returning to the bear channel.<\/li><\/ul>
- A risk-to-reward ratio that is strictly greater than 1:1 is required for bears to short at the low of bar 1. (1:2 is preferred).<\/li><\/ul>\n
\n- This is due to the fact that a higher risk-to-reward ratio is required when trading patterns like cup and handle, where the probability of success is around 50%.<\/li>\n<\/ul>\n<\/li>\n<\/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\/2023\/03\/Nifty-50-Wedge-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n- General Discussion<\/strong>
- Bears should avoid shorting close to bar 1, as there is little room for profit because the market is trading close to the wedge’s low.<\/li><\/ul>
- Some bulls might consider buying above bar 1 or watch for a bull bar in order to gain a small scalp.<\/li><\/ul>\n
\n- Because the market is currently in a trading range, traders should look to lock in profits rather than trying to swing their positions.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- Pay attention to leg 1, which has nine straight bear bars and is a very strong bear leg. But the market then created leg 2 (strong bull leg).<\/li><\/ul>
- Leg 1 convinced many bears to short on Low 1 for the second leg down, but leg 2 let the bears down. Many bulls were convinced by leg 2 to purchase on High 1 in anticipation of a second leg up, but even the bulls were let down by the poor follow-through.<\/li><\/ul>\n
\n- When both bulls and bears are disappointed then this generally suggests that market is now trading inside a trading range or a breakout mode pattern.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- The market has been showing a lot of trading range price action since the big surprise bar.<\/li><\/ul>
- Avoid taking positions as the market approaches the apex; instead, look for the next breakout.<\/li><\/ul>
- This is due to the fact that as the market approaches the apex, the potential for profit declines and uncertainty rises, which frequently causes a negative traders equation for the majority of traders.<\/li><\/ul>\n
\n- In order to avoid being forced out of a trade, traders who want to buy at the high of bar 1 should NOT place their stop at bar 1’s low but rather at the low of the closest swing low.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
\n\n\n\nMarket analysis reports archive<\/h3>\n\n\n\n
<\/a><\/figure>\n\n\n\n\n
- \n
- General Discussion<\/strong>
- The majority of bulls would not be buying at the current levels because bar 1 was a poor follow-through bar after the double bottom attempt, which has diminished their interest.<\/li><\/ul>
- For a double bottom fail and cup & handle top, bears would be selling at or below the low of bar 1.<\/li><\/ul>\n
- \n
- The majority of bears would maintain their stop at the high of bar 1, as this implies a trading range rather than a second leg down if the market trades above bar 1’s high.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>\n
- \n
- The Cup and Handle pattern is a breakout mode pattern, which means that the chances of a successful breakout are approximately 50%. In the example shown above, the bars on the left indicate trading range price action, so the chances of a successful breakout are even closer to 50%.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- A bear breakout from a bear channel has a 75% chance of failing after a few bars with the market returning to the bear channel.<\/li><\/ul>
- A risk-to-reward ratio that is strictly greater than 1:1 is required for bears to short at the low of bar 1. (1:2 is preferred).<\/li><\/ul>\n
- \n
- This is due to the fact that a higher risk-to-reward ratio is required when trading patterns like cup and handle, where the probability of success is around 50%.<\/li>\n<\/ul>\n<\/li>\n<\/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- \n
- General Discussion<\/strong>
- Bears should avoid shorting close to bar 1, as there is little room for profit because the market is trading close to the wedge’s low.<\/li><\/ul>
- Some bulls might consider buying above bar 1 or watch for a bull bar in order to gain a small scalp.<\/li><\/ul>\n
- \n
- Because the market is currently in a trading range, traders should look to lock in profits rather than trying to swing their positions.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- Pay attention to leg 1, which has nine straight bear bars and is a very strong bear leg. But the market then created leg 2 (strong bull leg).<\/li><\/ul>
- Leg 1 convinced many bears to short on Low 1 for the second leg down, but leg 2 let the bears down. Many bulls were convinced by leg 2 to purchase on High 1 in anticipation of a second leg up, but even the bulls were let down by the poor follow-through.<\/li><\/ul>\n
- \n
- When both bulls and bears are disappointed then this generally suggests that market is now trading inside a trading range or a breakout mode pattern.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- The market has been showing a lot of trading range price action since the big surprise bar.<\/li><\/ul>
- Avoid taking positions as the market approaches the apex; instead, look for the next breakout.<\/li><\/ul>
- This is due to the fact that as the market approaches the apex, the potential for profit declines and uncertainty rises, which frequently causes a negative traders equation for the majority of traders.<\/li><\/ul>\n
- \n
- In order to avoid being forced out of a trade, traders who want to buy at the high of bar 1 should NOT place their stop at bar 1’s low but rather at the low of the closest swing low.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
\n\n\n\nMarket analysis reports archive<\/h3>\n\n\n\n
- In order to avoid being forced out of a trade, traders who want to buy at the high of bar 1 should NOT place their stop at bar 1’s low but rather at the low of the closest swing low.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
- This is due to the fact that as the market approaches the apex, the potential for profit declines and uncertainty rises, which frequently causes a negative traders equation for the majority of traders.<\/li><\/ul>\n
- Avoid taking positions as the market approaches the apex; instead, look for the next breakout.<\/li><\/ul>
- The market has been showing a lot of trading range price action since the big surprise bar.<\/li><\/ul>
- Leg 1 convinced many bears to short on Low 1 for the second leg down, but leg 2 let the bears down. Many bulls were convinced by leg 2 to purchase on High 1 in anticipation of a second leg up, but even the bulls were let down by the poor follow-through.<\/li><\/ul>\n
- Pay attention to leg 1, which has nine straight bear bars and is a very strong bear leg. But the market then created leg 2 (strong bull leg).<\/li><\/ul>
- Some bulls might consider buying above bar 1 or watch for a bull bar in order to gain a small scalp.<\/li><\/ul>\n
- Bears should avoid shorting close to bar 1, as there is little room for profit because the market is trading close to the wedge’s low.<\/li><\/ul>
- General Discussion<\/strong>
- This is due to the fact that a higher risk-to-reward ratio is required when trading patterns like cup and handle, where the probability of success is around 50%.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
- A risk-to-reward ratio that is strictly greater than 1:1 is required for bears to short at the low of bar 1. (1:2 is preferred).<\/li><\/ul>\n
- A bear breakout from a bear channel has a 75% chance of failing after a few bars with the market returning to the bear channel.<\/li><\/ul>
- For a double bottom fail and cup & handle top, bears would be selling at or below the low of bar 1.<\/li><\/ul>\n
- The majority of bulls would not be buying at the current levels because bar 1 was a poor follow-through bar after the double bottom attempt, which has diminished their interest.<\/li><\/ul>