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\/2022\/11\/pullback-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n\n- General Discussion<\/strong>
- The market gave a strong bull breakout above the swing high but now it\u2019s near the all-time high so some bulls would resist buying around these levels.<\/li><\/ul>
- Candles are gapping up (on open) and the market is still in a strong bull micro channel so bears should avoid selling.<\/li><\/ul>
- Bulls can buy
- At the market, or<\/li><\/ul>
- At the low of the current bar (by limit order), or<\/li><\/ul>
- At breakout level (by limit order), or<\/li><\/ul>
- At high of the current bar (by stop order)<\/li><\/ul><\/li><\/ul>\n
\n- Note: Buying at these high levels increases the stop-loss (thus increasing risk on this trade), so traders should size their positions correctly.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- The market is in a bull micro channel which means the low of the 2nd<\/sup> bar never traded below the low of the 1st<\/sup> bar, after 6 bull bars the market formed a bear bar for 1st<\/sup> time in bull micro channel.<\/li><\/ul>\n
\n- As this is the 1st<\/sup> bear bar in this strong bull leg, there would be more buyers below this bar than sellers. This means there is a high probability that the market would get the 2nd<\/sup> leg up.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- Nifty 50 is near an all-time high, few bears would be waiting for strong bear bars to sell (assuming an all-time high would work as resistance).<\/li><\/ul>
- Some bulls would be buying at the market as the Nifty 50 gave a bull breakout and is in a strong bull leg.<\/li><\/ul>\n
\n- Few bulls would be waiting for a strong bull breakout of the all-time high.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Pro Tip<\/strong>\n
\n- Ask these questions of yourself before selling:
- Is the market in a tight bull channel?<\/li><\/ul>
- See the last 5 bars, how many bear bars are there?<\/li><\/ul>
- How strong are the bear bars compared to bull bars (see last 5-10 bars)?<\/li><\/ul>
- Is the market forming overlapping bars recently? If there are increasing overlapping bars after a bull trend then this can be a sign of possible reversal.<\/li><\/ul>\n
\n- If I had to buy at this level why would I buy (put yourself in a contrary position)?<\/li>\n<\/ul>\n<\/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\/2022\/11\/bad-follow-through-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n- General Discussion<\/strong>
- Nifty 50 is in a strong bull trend and gave a weak bear breakout of the tight bull channel.<\/li><\/ul>
- Bears would not be selling the market until they see consecutive bear bars or a big bear surprise bar, market needs to form big, strong bear bars to convince more bears to sell.<\/li><\/ul>\n
\n- As the Nifty 50 is in a strong bull trend, bulls know there is a very low probability that the market would reverse before giving the 2nd<\/sup> leg up (therefore bulls would be buying below bars).<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- In a strong bull trend like the above bulls generally place their limit orders below or at the low of candles or sometimes at swing lows.<\/li><\/ul>
- As there are more bulls below bars, this results in the formation of tails below bars (see the latest bar above).<\/li><\/ul>
- The market is forming a pullback, but the strength of this pullback is much less than the strength of the bull trend.<\/li><\/ul>\n
\n- So most bulls would assume that market would at least form the 2nd<\/sup> leg up before any kind of reversal.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- The market was in a strong tight bull channel and is now giving a weak bear breakout below the channel. This means the chances of reversal are quite low.<\/li><\/ul>
- Market cycle: breakout phase \u2192 tight bull channel \u2192 broad bull channel \u2192 trading range.<\/li><\/ul>\n
<\/a><\/figure>\n\n\n\n\n
- \n
- General Discussion<\/strong>
- The market gave a strong bull breakout above the swing high but now it\u2019s near the all-time high so some bulls would resist buying around these levels.<\/li><\/ul>
- Candles are gapping up (on open) and the market is still in a strong bull micro channel so bears should avoid selling.<\/li><\/ul>
- Bulls can buy
- At the market, or<\/li><\/ul>
- At the low of the current bar (by limit order), or<\/li><\/ul>
- At breakout level (by limit order), or<\/li><\/ul>
- At high of the current bar (by stop order)<\/li><\/ul><\/li><\/ul>\n
- \n
- Note: Buying at these high levels increases the stop-loss (thus increasing risk on this trade), so traders should size their positions correctly.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- The market is in a bull micro channel which means the low of the 2nd<\/sup> bar never traded below the low of the 1st<\/sup> bar, after 6 bull bars the market formed a bear bar for 1st<\/sup> time in bull micro channel.<\/li><\/ul>\n
- \n
- As this is the 1st<\/sup> bear bar in this strong bull leg, there would be more buyers below this bar than sellers. This means there is a high probability that the market would get the 2nd<\/sup> leg up.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- Nifty 50 is near an all-time high, few bears would be waiting for strong bear bars to sell (assuming an all-time high would work as resistance).<\/li><\/ul>
- Some bulls would be buying at the market as the Nifty 50 gave a bull breakout and is in a strong bull leg.<\/li><\/ul>\n
- \n
- Few bulls would be waiting for a strong bull breakout of the all-time high.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Pro Tip<\/strong>\n
- \n
- Ask these questions of yourself before selling:
- Is the market in a tight bull channel?<\/li><\/ul>
- See the last 5 bars, how many bear bars are there?<\/li><\/ul>
- How strong are the bear bars compared to bull bars (see last 5-10 bars)?<\/li><\/ul>
- Is the market forming overlapping bars recently? If there are increasing overlapping bars after a bull trend then this can be a sign of possible reversal.<\/li><\/ul>\n
- \n
- If I had to buy at this level why would I buy (put yourself in a contrary position)?<\/li>\n<\/ul>\n<\/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>
- Nifty 50 is in a strong bull trend and gave a weak bear breakout of the tight bull channel.<\/li><\/ul>
- Bears would not be selling the market until they see consecutive bear bars or a big bear surprise bar, market needs to form big, strong bear bars to convince more bears to sell.<\/li><\/ul>\n
- \n
- As the Nifty 50 is in a strong bull trend, bulls know there is a very low probability that the market would reverse before giving the 2nd<\/sup> leg up (therefore bulls would be buying below bars).<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- In a strong bull trend like the above bulls generally place their limit orders below or at the low of candles or sometimes at swing lows.<\/li><\/ul>
- As there are more bulls below bars, this results in the formation of tails below bars (see the latest bar above).<\/li><\/ul>
- The market is forming a pullback, but the strength of this pullback is much less than the strength of the bull trend.<\/li><\/ul>\n
- \n
- So most bulls would assume that market would at least form the 2nd<\/sup> leg up before any kind of reversal.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- The market was in a strong tight bull channel and is now giving a weak bear breakout below the channel. This means the chances of reversal are quite low.<\/li><\/ul>
- Market cycle: breakout phase \u2192 tight bull channel \u2192 broad bull channel \u2192 trading range.<\/li><\/ul>\n
- Patterns<\/strong>
- So most bulls would assume that market would at least form the 2nd<\/sup> leg up before any kind of reversal.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- The market is forming a pullback, but the strength of this pullback is much less than the strength of the bull trend.<\/li><\/ul>\n
- As there are more bulls below bars, this results in the formation of tails below bars (see the latest bar above).<\/li><\/ul>
- Deeper into price action<\/strong>
- As the Nifty 50 is in a strong bull trend, bulls know there is a very low probability that the market would reverse before giving the 2nd<\/sup> leg up (therefore bulls would be buying below bars).<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Bears would not be selling the market until they see consecutive bear bars or a big bear surprise bar, market needs to form big, strong bear bars to convince more bears to sell.<\/li><\/ul>\n
- Nifty 50 is in a strong bull trend and gave a weak bear breakout of the tight bull channel.<\/li><\/ul>
- General Discussion<\/strong>
- If I had to buy at this level why would I buy (put yourself in a contrary position)?<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
- Is the market forming overlapping bars recently? If there are increasing overlapping bars after a bull trend then this can be a sign of possible reversal.<\/li><\/ul>\n
- How strong are the bear bars compared to bull bars (see last 5-10 bars)?<\/li><\/ul>
- See the last 5 bars, how many bear bars are there?<\/li><\/ul>
- Is the market in a tight bull channel?<\/li><\/ul>
- Ask these questions of yourself before selling:
- Some bulls would be buying at the market as the Nifty 50 gave a bull breakout and is in a strong bull leg.<\/li><\/ul>\n
- Patterns<\/strong>
- As this is the 1st<\/sup> bear bar in this strong bull leg, there would be more buyers below this bar than sellers. This means there is a high probability that the market would get the 2nd<\/sup> leg up.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- The market is in a bull micro channel which means the low of the 2nd<\/sup> bar never traded below the low of the 1st<\/sup> bar, after 6 bull bars the market formed a bear bar for 1st<\/sup> time in bull micro channel.<\/li><\/ul>\n
- At high of the current bar (by stop order)<\/li><\/ul><\/li><\/ul>\n
- At breakout level (by limit order), or<\/li><\/ul>
- At the low of the current bar (by limit order), or<\/li><\/ul>
- At the market, or<\/li><\/ul>
- Bulls can buy
- Candles are gapping up (on open) and the market is still in a strong bull micro channel so bears should avoid selling.<\/li><\/ul>
- The market gave a strong bull breakout above the swing high but now it\u2019s near the all-time high so some bulls would resist buying around these levels.<\/li><\/ul>