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\/2023\/03\/Nifty-50-Wedge-1-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n\n- General Discussion<\/strong>
- Some bears would sell at the low of bar 1 and target the measured move down of the double top pattern.<\/li><\/ul>
- Bulls would not be buying at or above the bar 1, instead they would prefer to wait for a bull close and then consider buying.<\/li><\/ul>\n
\n- Some bears might sell with a limit order at the high of bar 1, but since there are fewer chances of a successful bear breakout of the wedge, they would take into account a risk-to-reward ratio of at least 1:2.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- Since we are distinctively trading inside a bear channel, bulls should always look to book quick profits as this is a bear channel (and a bear trend on a shorter time frame).<\/li><\/ul>
- This is due to the fact that against the trend legs are typically shorter and end sooner than anticipated, which frequently forces traders to give up profits.<\/li><\/ul>\n
\n- Until there is a sign of reversal, which can be a reversal pattern or a strong leg against the trend, bears should continue to hold their positions.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- Many bears shorted at the low of bar 2, which may have occurred for the reasons listed below:
- Bear bar 2 closed at it\u2019s low, which attracted some bears to short below it.<\/li><\/ul>
- Market was in breakout mode, and bulls were not successful in driving the market higher after the double bottom attempt.<\/li><\/ul>
- There was an measured move down pending the double top (blue dotted line).<\/li><\/ul><\/li><\/ul>\n
\n- The market attempted to break out of the bear channel, but it is still trading there. Because the market is still in the channel, traders should trade it as a channel, meaning that if bulls are buying, they should book profits and bears should hold their positions (i.e. swing their trade).<\/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\/2023\/03\/Nifty-50-Bad-Follow-Through-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n- General Discussion<\/strong>
- The market made a strong bear leg breakout, which will entice some bears to sell at the Low 1 or Low 2 for a subsequent leg down.<\/li><\/ul>\n
\n- Bulls may buy after the formation of a strong bull bar for a scalp if bears do not get any follow-through.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- Because bar 3 was a strong bear bar closing near its low, many traders would have shorted at the low of bar 3 in anticipation of the bear breakout of the cup & handle pattern.<\/li><\/ul>
- The tail at the bottom of bar 1 suggests that bears who shorted the close of bar 3 exited on breakeven, which would disappoint bears who shorted at that point due to the poor follow-through.<\/li><\/ul>\n
\n- Bears seeking to exit their positions at breakeven who were unable to do so would look to scale in on the following Low 1 sell signal bar.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>\n
\n- The market typically forms a second leg down after a significant bear leg for a number of reasons:\n
\n- If the pullback after the strong bear leg was weak<\/em> then confident<\/em> bears would scale in their positions to anticipate the trend.<\/li>\n\n\n\n
- If the pullback after the strong bear leg was strong<\/em> then disappointed<\/em> bears would look scale in their position for exiting their positions at breakeven.<\/li>\n<\/ul>\n<\/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>
- Some bears would sell at the low of bar 1 and target the measured move down of the double top pattern.<\/li><\/ul>
- Bulls would not be buying at or above the bar 1, instead they would prefer to wait for a bull close and then consider buying.<\/li><\/ul>\n
- \n
- Some bears might sell with a limit order at the high of bar 1, but since there are fewer chances of a successful bear breakout of the wedge, they would take into account a risk-to-reward ratio of at least 1:2.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- Since we are distinctively trading inside a bear channel, bulls should always look to book quick profits as this is a bear channel (and a bear trend on a shorter time frame).<\/li><\/ul>
- This is due to the fact that against the trend legs are typically shorter and end sooner than anticipated, which frequently forces traders to give up profits.<\/li><\/ul>\n
- \n
- Until there is a sign of reversal, which can be a reversal pattern or a strong leg against the trend, bears should continue to hold their positions.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- Many bears shorted at the low of bar 2, which may have occurred for the reasons listed below:
- Bear bar 2 closed at it\u2019s low, which attracted some bears to short below it.<\/li><\/ul>
- Market was in breakout mode, and bulls were not successful in driving the market higher after the double bottom attempt.<\/li><\/ul>
- There was an measured move down pending the double top (blue dotted line).<\/li><\/ul><\/li><\/ul>\n
- \n
- The market attempted to break out of the bear channel, but it is still trading there. Because the market is still in the channel, traders should trade it as a channel, meaning that if bulls are buying, they should book profits and bears should hold their positions (i.e. swing their trade).<\/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>
- The market made a strong bear leg breakout, which will entice some bears to sell at the Low 1 or Low 2 for a subsequent leg down.<\/li><\/ul>\n
- \n
- Bulls may buy after the formation of a strong bull bar for a scalp if bears do not get any follow-through.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- Because bar 3 was a strong bear bar closing near its low, many traders would have shorted at the low of bar 3 in anticipation of the bear breakout of the cup & handle pattern.<\/li><\/ul>
- The tail at the bottom of bar 1 suggests that bears who shorted the close of bar 3 exited on breakeven, which would disappoint bears who shorted at that point due to the poor follow-through.<\/li><\/ul>\n
- \n
- Bears seeking to exit their positions at breakeven who were unable to do so would look to scale in on the following Low 1 sell signal bar.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>\n
- \n
- The market typically forms a second leg down after a significant bear leg for a number of reasons:\n
- \n
- If the pullback after the strong bear leg was weak<\/em> then confident<\/em> bears would scale in their positions to anticipate the trend.<\/li>\n\n\n\n
- If the pullback after the strong bear leg was strong<\/em> then disappointed<\/em> bears would look scale in their position for exiting their positions at breakeven.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
\n\n\n\nMarket analysis reports archive<\/h3>\n\n\n\n
- If the pullback after the strong bear leg was strong<\/em> then disappointed<\/em> bears would look scale in their position for exiting their positions at breakeven.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
- If the pullback after the strong bear leg was weak<\/em> then confident<\/em> bears would scale in their positions to anticipate the trend.<\/li>\n\n\n\n
- The market typically forms a second leg down after a significant bear leg for a number of reasons:\n
- The tail at the bottom of bar 1 suggests that bears who shorted the close of bar 3 exited on breakeven, which would disappoint bears who shorted at that point due to the poor follow-through.<\/li><\/ul>\n
- Because bar 3 was a strong bear bar closing near its low, many traders would have shorted at the low of bar 3 in anticipation of the bear breakout of the cup & handle pattern.<\/li><\/ul>
- The market made a strong bear leg breakout, which will entice some bears to sell at the Low 1 or Low 2 for a subsequent leg down.<\/li><\/ul>\n
- General Discussion<\/strong>
- The market attempted to break out of the bear channel, but it is still trading there. Because the market is still in the channel, traders should trade it as a channel, meaning that if bulls are buying, they should book profits and bears should hold their positions (i.e. swing their trade).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
- There was an measured move down pending the double top (blue dotted line).<\/li><\/ul><\/li><\/ul>\n
- Market was in breakout mode, and bulls were not successful in driving the market higher after the double bottom attempt.<\/li><\/ul>
- Bear bar 2 closed at it\u2019s low, which attracted some bears to short below it.<\/li><\/ul>
- Many bears shorted at the low of bar 2, which may have occurred for the reasons listed below:
- This is due to the fact that against the trend legs are typically shorter and end sooner than anticipated, which frequently forces traders to give up profits.<\/li><\/ul>\n
- Since we are distinctively trading inside a bear channel, bulls should always look to book quick profits as this is a bear channel (and a bear trend on a shorter time frame).<\/li><\/ul>
- Bulls would not be buying at or above the bar 1, instead they would prefer to wait for a bull close and then consider buying.<\/li><\/ul>\n
- Some bears would sell at the low of bar 1 and target the measured move down of the double top pattern.<\/li><\/ul>