Daily Nifty 50 setups

Postado por: Amol

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Nifty 10-Feb-2025

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Dear Darpan - The initial strong bear bar down, I initially assessed as testing bottom of trading range with yesterdays price action. We can see bull bar closing on its high immediately after this climatic bar. But then we developed ii with break out pull back sell. What is your assessment, do you think bulls bought close of 1st strong bear bar hoping for big up (y'day; EOD rally) and big down (today; 1st bar). 

Thanks in advance! Cheers!

 

Yes Amol, that's precisely what took place. Expecting a TR, some bulls would've bought the close of big bear bar (which is why Bar 2 was a Bull Bar), while others would've bought the PDL expecting failed bear BO. They scaled in lower above a bull bar closing near its high at Bar 7 and exited during the 50% PB. Those who were still long, gave up on Bar 11 causing a big bear trend bar.

 

Thanks Darpan!

hey can you please tell me that how daily chart is effective rather than minutes because i see minutes chart of nifty50

I'm still a beginner in Price action Trading but I think, Nifty daily chart can help us get an idea about the market trend, support and resistance level on higher time frame. It can also help understand action of bulls and bears at specific level like bears who sold on second entry short on 06 Feb and at the top of the wedge might have covered their position on 27 Jan low ie around 22800. We can also expect bulls to enter at these level.

Postado por: DrTraderLife

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hey can you please tell me that how daily chart is effective rather than minutes because i see minutes chart of nifty50

The daily chart can be effective for intraday trading because it helps identify key support/resistance levels, market cycle, and overall market context. Price movements on a 5-minute chart are influenced by higher timeframes, and strong levels from the daily chart often act as reaction points during the day. It also helps in calibrating expectations - whether to anticipate a trend day, a TR day, or a potential reversal - allowing traders to align their strategies accordingly. While intraday traders primarily use lower timeframe charts for execution, keeping the bigger picture in mind leads to better trading decisions.

 

Thanks Skaramoosh for sharing insights on using higher TF chart. It was helpful. I looked at 1 hr TF chart today and was able to identify the top of bull channel.

Nifty 19-Feb-2025