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\/2025\/08\/Nifty-50-Bear-Micro-Channel-1-680x382.jpg\" "\\"\\"")
<\/a><\/figure>\n\n\n\n<\/div>\n\n\n\n\n\n- General Discussion<\/strong>\n
\n- Traders holding short positions should continue to hold, as the market is in a strong bear channel and the measured move target has not yet been reached.<\/li>\n\n\n\n
- Traders not currently in a position can wait for a pullback and enter on a Low-1 short, or short on the next open with a wide stop loss.<\/li>\n\n\n\n
- If the market shows a surprisingly strong pullback (for example, strong consecutive bull bars), bulls can enter long, betting on the failure of the Low-1 setup or a second-leg-down failure.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the Price Action<\/strong>\n
\n- What are the chances the market will make a second leg up or down? Usually, when the market is in a trending phase\u2014such as a bull trend\u2014the chances of a second leg up are much higher before a reversal.<\/li>\n\n\n\n
- However, in a ranging phase, the chances of a second leg up are lower. Instead, the market often forms V-shaped patterns, where even after a strong leg, it quickly moves in the opposite direction without forming a second leg.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>\n
\n- If bulls fail to produce a strong pullback and instead only form weak bull bars, the market is likely to turn into a tight bear channel or a bear channel. In this case, traders can short near the high of the channel or on a Low-2 setup.<\/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\/2025\/08\/Nifty-50-Trading-Range-bear-breakout-680x382.jpg\" "\\"\\"")
<\/a><\/figure>\n\n\n\n<\/div>\n\n\n\n\n- General Discussion<\/strong>\n
\n- Traders who shorted near the top of the trading range and are still holding their positions can continue to hold until the market forms strong consecutive bull bars.<\/li>\n\n\n\n
- Traders who entered a long position near the bottom of the trading range can either exit their trade or wait for the next close. If the bears manage to produce a follow-through bar, exit; otherwise, hold the position.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into Price Action<\/strong>\n
\n- The market is currently in a trading range phase. When holding a position, look for the nearest major support or resistance levels, as reversals are common in this type of phase.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>\n
\n- If the bears successfully produce a strong follow-through bar, traders can expect the market to move down by a measured amount based on the height of the trading range.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
<\/a><\/figure>\n\n\n\n<\/div>\n\n\n\n
\n
- \n
- General Discussion<\/strong>\n
- \n
- Traders holding short positions should continue to hold, as the market is in a strong bear channel and the measured move target has not yet been reached.<\/li>\n\n\n\n
- Traders not currently in a position can wait for a pullback and enter on a Low-1 short, or short on the next open with a wide stop loss.<\/li>\n\n\n\n
- If the market shows a surprisingly strong pullback (for example, strong consecutive bull bars), bulls can enter long, betting on the failure of the Low-1 setup or a second-leg-down failure.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the Price Action<\/strong>\n
- \n
- What are the chances the market will make a second leg up or down? Usually, when the market is in a trending phase\u2014such as a bull trend\u2014the chances of a second leg up are much higher before a reversal.<\/li>\n\n\n\n
- However, in a ranging phase, the chances of a second leg up are lower. Instead, the market often forms V-shaped patterns, where even after a strong leg, it quickly moves in the opposite direction without forming a second leg.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>\n
- \n
- If bulls fail to produce a strong pullback and instead only form weak bull bars, the market is likely to turn into a tight bear channel or a bear channel. In this case, traders can short near the high of the channel or on a Low-2 setup.<\/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<\/div>\n\n\n\n- \n
- General Discussion<\/strong>\n
- \n
- Traders who shorted near the top of the trading range and are still holding their positions can continue to hold until the market forms strong consecutive bull bars.<\/li>\n\n\n\n
- Traders who entered a long position near the bottom of the trading range can either exit their trade or wait for the next close. If the bears manage to produce a follow-through bar, exit; otherwise, hold the position.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into Price Action<\/strong>\n
- \n
- The market is currently in a trading range phase. When holding a position, look for the nearest major support or resistance levels, as reversals are common in this type of phase.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>\n
- \n
- If the bears successfully produce a strong follow-through bar, traders can expect the market to move down by a measured amount based on the height of the trading range.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
- General Discussion<\/strong>\n
- If bulls fail to produce a strong pullback and instead only form weak bull bars, the market is likely to turn into a tight bear channel or a bear channel. In this case, traders can short near the high of the channel or on a Low-2 setup.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n