{"id":162191,"date":"2022-10-08T07:00:00","date_gmt":"2022-10-08T14:00:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=162191"},"modified":"2022-10-08T01:44:02","modified_gmt":"2022-10-08T08:44:02","slug":"nifty-50-futures-wedge-bottom","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/nifty-50-futures-wedge-bottom\/","title":{"rendered":"Nifty 50 Futures Wedge Bottom"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Market Overview: Nifty 50 Futures<\/h2>\n\n\n\n<p>The\u00a0<strong>Nifty 50<\/strong> on the weekly chart is forming a <a href=\"https:\/\/www.investing.com\/indices\/india-50-futures\" target=\"_blank\" rel=\"noreferrer noopener\">Nifty 50 futures wedge bottom<\/a> and trading range price action, with increasing bad follow-through bars and increasing tails above and below bars. The market is also forming reversal patterns which is a sign that market is in a trading range phase. <\/p>\n\n\n\n<p>Nifty 50 on the daily chart has transitioned from the breakout phase to the trading range phase. The market has been trading at the same levels for the whole week.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Nifty 50 futures<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">The <em>Weekly<\/em> Nifty 50 chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/10\/wedge-bottom-1.png\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/10\/wedge-bottom-1-680x383.png\" alt=\"Nifty 50 Futures Wedge Bottom\" class=\"wp-image-162275\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/10\/wedge-bottom-1-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/10\/wedge-bottom-1-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/10\/wedge-bottom-1-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/10\/wedge-bottom-1-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/10\/wedge-bottom-1.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<ul class=\"wp-block-list\"><li><strong>General Discussion<\/strong><ul><li>The market is in a big trading range (blue dotted lines) so reversal patterns and fakeouts would be common for upcoming weeks.<\/li><\/ul><ul><li>In a trading range, even the strongest looking moves often tend to reverse within a few bars, so traders should focus on quick exits rather than swing their position.<\/li><\/ul><\/li><li><strong>Deeper into the price action<\/strong><ul><li>The market gave a bear breakout below the double top neckline and now quickly reversing up. This is creating confusion which is the hallmark of the trading range.<\/li><\/ul><ul><li>Traders who shorted below bear bars for the double top would be exiting early above this week\u2019s bull bar.<\/li><\/ul><ul><li>The solid blue line (in the above chart) acts as a support and the market also forms a wedge bottom, which increases the probability of moving up rather than down.<\/li><\/ul><\/li><li><strong>Patterns<\/strong><ul><li>There were only 25% chances of the market giving an overshoot of the wedge bottom line, and 75% chances of the market touching the top line of the channel (which it already did).<\/li><\/ul><ul><li>The probability of measured move down based on a higher high double top is now very low due to the formation of wedge bottom and support (solid blue line).<\/li><\/ul><ul><li>The market is still near the top of the big trading range so traders buying above this bull bar would be exiting with scalpers&#8217; profit rather than swinging their position.<\/li><\/ul><\/li><li><strong>Pro Tip<\/strong><ul><li>When the market is in the trading range phase (like above) then trading reversals has high probability rather than trading breakouts.<\/li><\/ul><ul><li>Similar for trending markets i.e., when the market is in the trending phase, then trading reversal trades is low probability and trading breakout trades gives a higher probability.<\/li><\/ul><ul><li>Patterns you can trade when the market is in the trading range phase are:<ul><li>Double top<\/li><\/ul><ul><li>Double bottom<\/li><\/ul><ul><li>Wedge top<\/li><\/ul><ul><li>Wedge bottom<\/li><\/ul><ul><li>Head and shoulder bottom<\/li><\/ul><ul><li>Head and shoulder top<\/li><\/ul><ul><li>And all other reversal patterns<\/li><\/ul><\/li><\/ul><ul><li>Patterns you can trade when the market is in the trending phase are:<ul><li>Triangle Breakout<\/li><\/ul><ul><li>Bull flag<\/li><\/ul><ul><li>Bear Flag<\/li><\/ul><ul><li>Buy The Close<\/li><\/ul><ul><li>Sell The Close<\/li><\/ul><ul><li>And all other breakout patterns<\/li><\/ul><\/li><\/ul><\/li><\/ul>\n<\/div><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">The <em>Daily<\/em> Nifty 50 chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/10\/head-and-shoulder-1.png\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/10\/head-and-shoulder-1-680x383.png\" alt=\"Nifty 50 Futures Head and Shoulder\" class=\"wp-image-162278\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/10\/head-and-shoulder-1-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/10\/head-and-shoulder-1-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/10\/head-and-shoulder-1-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/10\/head-and-shoulder-1-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/10\/head-and-shoulder-1.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>General Discussion<\/strong><ul><li>Increasing trading range price action daily is seen, bear bars are followed by bull bars.<\/li><\/ul><ul><li>The market has transitioned from the breakout phase to the trading range phase, so traders can expect frequent reversals after breakouts of support or resistance levels.<\/li><\/ul><ul><li>Traders should not look for holding their positions for a swing, rather they should book quick profits (scalps).<\/li><\/ul><\/li><li><strong>Deeper into price action<\/strong><ul><li>Market testing breakout levels, like in the above chart, support levels are broken and then tested within a few bars.<\/li><\/ul><ul><li>This means that this is a limit order market, which means that bulls are placing buy limit orders below levels and can make money.<\/li><\/ul><ul><li>When both bears and bulls can make money, then that is not a strong trend, rather market is just in a trading range, or in a broad bear channel.<\/li><\/ul><\/li><li><strong>Patterns<\/strong><ul><li>After the bear breakout below the support level, the market is now forming a head and shoulder bottom and can lead to a possible measured move up.<\/li><\/ul><ul><li>As already discussed above, reversal patterns work well in trading range phases and breakout patterns work well in trending phases.<\/li><\/ul><ul><li>As the market can be in a possible broad bear channel as well, some traders who bought the head and shoulder bottom breakout would be exiting soon, and would not wait for a measured move target.<\/li><\/ul><\/li><\/ul>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Market analysis reports archive<\/h3>\n\n\n\n<p>You can access all weekend reports on the <a rel=\"noreferrer noopener\" class=\"rank-math-link\" href=\"https:\/\/www.brookstradingcourse.com\/blog\/analysis\/\" target=\"_blank\">Market Analysis<\/a> page.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Market Overview: Nifty 50 Futures The\u00a0Nifty 50 on the weekly chart is forming a Nifty 50 futures wedge bottom and trading range price action, with increasing bad follow-through bars and increasing tails above and below bars. The market is also forming reversal patterns which is a sign that market is in a trading range phase. [&hellip;]<\/p>\n","protected":false},"author":12159,"featured_media":162275,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[136,1851],"tags":[328,1852,84,1398],"class_list":{"0":"post-162191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-analysis","8":"category-nifty-50","9":"tag-double-top","10":"tag-nifty-50","11":"tag-trading-range","12":"tag-wedge-bottom","13":"entry","14":"override","15":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/10\/wedge-bottom-1.png","author_info":{"display_name":"Rishi","author_link":"https:\/\/www.brookstradingcourse.com\/pt-br\/author\/rishi\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/162191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/users\/12159"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/comments?post=162191"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/162191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media\/162275"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=162191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=162191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=162191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}