Nifty 50 on the weekly chart is also showing a strong bullish trend. It is still in the tight bull channel which makes it harder for bears to sell while bulls continue to accumulate.<\/p>\n\n\n\n
Nifty 50 futures<\/h2>\n\n\n\nThe Monthly<\/em> Nifty 50 chart<\/h3>\n\n\n\n![\"Nifty](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/breakout-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n\n- General Discussion<\/strong>
- The market gave a strong breakout above an all-time high level and now it’s likely that the market would have good follow-through.<\/li><\/ul>
- Traders would keep a close watch on the next bar (after the breakout) as it would confirm whether this breakout would fail or succeed.<\/li><\/ul>\n
\n- If all market gets a bad follow-through bar then the best bears can get is a trading range and not a reversal.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- Low of bar 2 (shown in image with red text) did not go much below high of bar 1 and bar 1 closed at its high which is a sign of strength of the bulls.<\/li><\/ul>
- If you look at bars on the left you would notice many bars had tails above and below, and bars were getting bad follow-throughs. These were signs of the trading range.<\/li><\/ul>\n
\n- Due to this many bears would have sold with limit orders at the all-time high, assuming the market would turn into a trading range rather than a successful bull breakout.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- After reaching a measured move, the market spent a year going sideways and now gave a breakout above an all-time high.<\/li><\/ul>\n
\n- Levels like round numbers, all-time highs, 52 weeks high, etc., are important resistance levels and after the breakout of these traders enter positions only after seeing the strength of follow through.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Pro Tip<\/strong>
- How can you enter a bull breakout?<\/li><\/ul>\n
\n- Breakouts occur fast, and due to this it’s very easy to make mistakes while entering one. Traders have different approaches to entering a breakout:
- Entering while the market is having a breakout of some level or some pattern, traders can buy at the market or can put buy stop orders at the breakout level.<\/li><\/ul>\n
\n- Entering the market after gave strong bull close above the breakout level, traders can buy at the market or can put buy stop orders<\/li>\n\n\n\n
- Entering the market on a High 1, many traders prefer entering on the 1st<\/sup> High 1 formed after the breakout.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
The Weekly<\/em> Nifty 50 chart<\/h3>\n\n\n\n![\"Nifty](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/tight-bull-channel-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n- General Discussion<\/strong>
- Nifty 50 on the weekly chart is still in the tight bull channel and broke strongly above an all-time high.<\/li><\/ul>
- The market has not formed any strong bear bar for 10 weeks, so bears should not plan for selling until they see strong bear bars.<\/li><\/ul>\n
\n- As this is strong bull leg bulls would buy with limit orders, market orders, or stop orders. This is because they know there is a very high probability that the market would give 2nd<\/sup> leg up before any kind of reversal.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- The tight bull channel consists of many bars which did not even trade below the low of prior bars (bull micro channel). This is a strong sign of the strength of bulls as this shows how urgent the bulls are.<\/li><\/ul>
- The breakout bar (of an all-time high) has a tail above which would stop many bulls from buying this breakout until they get some confirmation.<\/li><\/ul>\n
\n- As bulls know there is a high probability of 2nd<\/sup> leg up, bulls would buy this breakout even if the breakout has a tail on top of it.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- The market finally breached the all-time high level after 12 months. The all-time high level acted as a resistance level, but until now, no sign of weakness is seen in the price action.<\/li><\/ul>\n
\n- The market is in a tight bull channel so even if the market breaks below this tight bull channel, there are very high chances that the market would convert into a broad bull channel rather than a bear trend.<\/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>
- The market gave a strong breakout above an all-time high level and now it’s likely that the market would have good follow-through.<\/li><\/ul>
- Traders would keep a close watch on the next bar (after the breakout) as it would confirm whether this breakout would fail or succeed.<\/li><\/ul>\n
- \n
- If all market gets a bad follow-through bar then the best bears can get is a trading range and not a reversal.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- Low of bar 2 (shown in image with red text) did not go much below high of bar 1 and bar 1 closed at its high which is a sign of strength of the bulls.<\/li><\/ul>
- If you look at bars on the left you would notice many bars had tails above and below, and bars were getting bad follow-throughs. These were signs of the trading range.<\/li><\/ul>\n
- \n
- Due to this many bears would have sold with limit orders at the all-time high, assuming the market would turn into a trading range rather than a successful bull breakout.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- After reaching a measured move, the market spent a year going sideways and now gave a breakout above an all-time high.<\/li><\/ul>\n
- \n
- Levels like round numbers, all-time highs, 52 weeks high, etc., are important resistance levels and after the breakout of these traders enter positions only after seeing the strength of follow through.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Pro Tip<\/strong>
- How can you enter a bull breakout?<\/li><\/ul>\n
- \n
- Breakouts occur fast, and due to this it’s very easy to make mistakes while entering one. Traders have different approaches to entering a breakout:
- Entering while the market is having a breakout of some level or some pattern, traders can buy at the market or can put buy stop orders at the breakout level.<\/li><\/ul>\n
- \n
- Entering the market after gave strong bull close above the breakout level, traders can buy at the market or can put buy stop orders<\/li>\n\n\n\n
- Entering the market on a High 1, many traders prefer entering on the 1st<\/sup> High 1 formed after the breakout.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
The Weekly<\/em> Nifty 50 chart<\/h3>\n\n\n\n
<\/a><\/figure>\n\n\n\n- \n
- General Discussion<\/strong>
- Nifty 50 on the weekly chart is still in the tight bull channel and broke strongly above an all-time high.<\/li><\/ul>
- The market has not formed any strong bear bar for 10 weeks, so bears should not plan for selling until they see strong bear bars.<\/li><\/ul>\n
- \n
- As this is strong bull leg bulls would buy with limit orders, market orders, or stop orders. This is because they know there is a very high probability that the market would give 2nd<\/sup> leg up before any kind of reversal.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- The tight bull channel consists of many bars which did not even trade below the low of prior bars (bull micro channel). This is a strong sign of the strength of bulls as this shows how urgent the bulls are.<\/li><\/ul>
- The breakout bar (of an all-time high) has a tail above which would stop many bulls from buying this breakout until they get some confirmation.<\/li><\/ul>\n
- \n
- As bulls know there is a high probability of 2nd<\/sup> leg up, bulls would buy this breakout even if the breakout has a tail on top of it.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- The market finally breached the all-time high level after 12 months. The all-time high level acted as a resistance level, but until now, no sign of weakness is seen in the price action.<\/li><\/ul>\n
- \n
- The market is in a tight bull channel so even if the market breaks below this tight bull channel, there are very high chances that the market would convert into a broad bull channel rather than a bear trend.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
\n\n\n\nMarket analysis reports archive<\/h3>\n\n\n\n
- The market is in a tight bull channel so even if the market breaks below this tight bull channel, there are very high chances that the market would convert into a broad bull channel rather than a bear trend.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
- Patterns<\/strong>
- As bulls know there is a high probability of 2nd<\/sup> leg up, bulls would buy this breakout even if the breakout has a tail on top of it.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- The breakout bar (of an all-time high) has a tail above which would stop many bulls from buying this breakout until they get some confirmation.<\/li><\/ul>\n
- Deeper into price action<\/strong>
- As this is strong bull leg bulls would buy with limit orders, market orders, or stop orders. This is because they know there is a very high probability that the market would give 2nd<\/sup> leg up before any kind of reversal.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- The market has not formed any strong bear bar for 10 weeks, so bears should not plan for selling until they see strong bear bars.<\/li><\/ul>\n
- Nifty 50 on the weekly chart is still in the tight bull channel and broke strongly above an all-time high.<\/li><\/ul>
- General Discussion<\/strong>
- Entering while the market is having a breakout of some level or some pattern, traders can buy at the market or can put buy stop orders at the breakout level.<\/li><\/ul>\n
- Breakouts occur fast, and due to this it’s very easy to make mistakes while entering one. Traders have different approaches to entering a breakout:
- How can you enter a bull breakout?<\/li><\/ul>\n
- After reaching a measured move, the market spent a year going sideways and now gave a breakout above an all-time high.<\/li><\/ul>\n
- If you look at bars on the left you would notice many bars had tails above and below, and bars were getting bad follow-throughs. These were signs of the trading range.<\/li><\/ul>\n
- Low of bar 2 (shown in image with red text) did not go much below high of bar 1 and bar 1 closed at its high which is a sign of strength of the bulls.<\/li><\/ul>
- Traders would keep a close watch on the next bar (after the breakout) as it would confirm whether this breakout would fail or succeed.<\/li><\/ul>\n
- The market gave a strong breakout above an all-time high level and now it’s likely that the market would have good follow-through.<\/li><\/ul>