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\/09\/Nifty-50-2nd-Leg-Trap-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n\n- General Discussion<\/strong>
- Because the market is trading inside of a broad bull channel, traders should buy near the channel’s low and sell near its high.<\/li><\/ul>
- Bulls should hold off on buying until the market closes strongly above the 20000 level or above the all-time high.<\/li><\/ul>\n
\n- Bears can sell the second leg of the bull trap with a tight stop loss. If the bears are unable to provide a strong bear follow-through bar, the likelihood of a tight trading range will increase.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- A second leg bull trap frequently results in a double top, as seen in the chart above. Bears’ ability to provide a strong follow-through bar would increase the likelihood of a reversal.<\/li><\/ul>\n
\n- Due to the strength of the bull trend, a weak bear follow-through bar may only produce a tight trading range rather than a reversal.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- Bar 1 is a surprise bear bar because it came right after a strong bull breakout and two consecutive bull bars.<\/li><\/ul>\n
\n- The surprise bar might lead to a measured move down based on the body of the surprise bar.<\/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\/09\/Nifty-50-Trading-Range-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n- General Discussion<\/strong>
- The market is currently trading in the middle of the trading range.<\/li><\/ul>
- The likelihood of a second leg down is higher as a result of the failed bull breakout. Bears can therefore sell on a low-1 signal bar.<\/li><\/ul>\n
\n- Bulls should hold off until the price is close to the trading range’s bottom.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- After the bulls failed to obtain follow-through bull bars, the bears began to sell the bear closes, which resulted into bear gaps.<\/li><\/ul>
- Bears were able to get a bear gap and this might lead to a measured move down.<\/li><\/ul>
- Bulls anticipated a second leg up following the strong breakout of the trading range, but they were unable to hold above the 20000 level.<\/li><\/ul>
- Many bulls would have bought the closes of the bull breakout bars and now they are trapped (this is a 2nd<\/sup> leg bull trap).<\/li><\/ul>\n
\n- The likelihood of reaching the trading range bottom will increase if the bulls are unable to close the bear gap.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- The market has now re-entered the trading range following the failed breakout attempt, so traders should use the buy low, sell high trading strategy.<\/li><\/ul>\n
\n- An expanding triangle pattern is also developing in the market. The trading range bottom or the bottom trendline of the expanding triangle are the targets for sellers who enter at a low-1.<\/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>
- Because the market is trading inside of a broad bull channel, traders should buy near the channel’s low and sell near its high.<\/li><\/ul>
- Bulls should hold off on buying until the market closes strongly above the 20000 level or above the all-time high.<\/li><\/ul>\n
- \n
- Bears can sell the second leg of the bull trap with a tight stop loss. If the bears are unable to provide a strong bear follow-through bar, the likelihood of a tight trading range will increase.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- A second leg bull trap frequently results in a double top, as seen in the chart above. Bears’ ability to provide a strong follow-through bar would increase the likelihood of a reversal.<\/li><\/ul>\n
- \n
- Due to the strength of the bull trend, a weak bear follow-through bar may only produce a tight trading range rather than a reversal.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- Bar 1 is a surprise bear bar because it came right after a strong bull breakout and two consecutive bull bars.<\/li><\/ul>\n
- \n
- The surprise bar might lead to a measured move down based on the body of the surprise bar.<\/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>
- The market is currently trading in the middle of the trading range.<\/li><\/ul>
- The likelihood of a second leg down is higher as a result of the failed bull breakout. Bears can therefore sell on a low-1 signal bar.<\/li><\/ul>\n
- \n
- Bulls should hold off until the price is close to the trading range’s bottom.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- After the bulls failed to obtain follow-through bull bars, the bears began to sell the bear closes, which resulted into bear gaps.<\/li><\/ul>
- Bears were able to get a bear gap and this might lead to a measured move down.<\/li><\/ul>
- Bulls anticipated a second leg up following the strong breakout of the trading range, but they were unable to hold above the 20000 level.<\/li><\/ul>
- Many bulls would have bought the closes of the bull breakout bars and now they are trapped (this is a 2nd<\/sup> leg bull trap).<\/li><\/ul>\n
- \n
- The likelihood of reaching the trading range bottom will increase if the bulls are unable to close the bear gap.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- The market has now re-entered the trading range following the failed breakout attempt, so traders should use the buy low, sell high trading strategy.<\/li><\/ul>\n
- \n
- An expanding triangle pattern is also developing in the market. The trading range bottom or the bottom trendline of the expanding triangle are the targets for sellers who enter at a low-1.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
\n\n\n\nMarket analysis reports archive<\/h3>\n\n\n\n
- An expanding triangle pattern is also developing in the market. The trading range bottom or the bottom trendline of the expanding triangle are the targets for sellers who enter at a low-1.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
- The market has now re-entered the trading range following the failed breakout attempt, so traders should use the buy low, sell high trading strategy.<\/li><\/ul>\n
- Many bulls would have bought the closes of the bull breakout bars and now they are trapped (this is a 2nd<\/sup> leg bull trap).<\/li><\/ul>\n
- Bulls anticipated a second leg up following the strong breakout of the trading range, but they were unable to hold above the 20000 level.<\/li><\/ul>
- Bears were able to get a bear gap and this might lead to a measured move down.<\/li><\/ul>
- After the bulls failed to obtain follow-through bull bars, the bears began to sell the bear closes, which resulted into bear gaps.<\/li><\/ul>
- The likelihood of a second leg down is higher as a result of the failed bull breakout. Bears can therefore sell on a low-1 signal bar.<\/li><\/ul>\n
- The market is currently trading in the middle of the trading range.<\/li><\/ul>
- General Discussion<\/strong>
- The surprise bar might lead to a measured move down based on the body of the surprise bar.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
- Bar 1 is a surprise bear bar because it came right after a strong bull breakout and two consecutive bull bars.<\/li><\/ul>\n
- A second leg bull trap frequently results in a double top, as seen in the chart above. Bears’ ability to provide a strong follow-through bar would increase the likelihood of a reversal.<\/li><\/ul>\n
- Bulls should hold off on buying until the market closes strongly above the 20000 level or above the all-time high.<\/li><\/ul>\n
- Because the market is trading inside of a broad bull channel, traders should buy near the channel’s low and sell near its high.<\/li><\/ul>