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-Big-Round-Number-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n\n- General Discussion<\/strong>
- The market is in a strong bear channel, and no strong bull bars have formed in the past seven weeks. The most recent bull bar, which closed close to its high but wasn’t very large, didn’t get a follow-through.<\/li><\/ul>
- Since there are no indications that the market is bullish, bulls would hold off on buying until they observe a strong bull bar closing close to the high.<\/li><\/ul>\n
\n- Given that the market is trading near the large round number, which serves as price support, as well as the channel’s bottom, some bears would refrain from selling at this level.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- A big round number attracts the price like a magnet, and consequently, sharp moves and reversals are frequently seen close by.<\/li><\/ul>
- There\u2019s an pending measured move of the double top (depicted using the brown solid line) which would also act like a magnet.<\/li><\/ul>\n
\n- Traders who are already in a position would be quick to exit their trades if the market started to show reversal signs because they are aware that sharp price moves are frequent near big round numbers.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- Usually, the likelihood of a channel breaking out (on either side) increases as the number of legs in the channel increases. A bull breakout of a bear channel has a 75% chance of occurring, while a bear breakout of a bear channel has a 25% chance of occurring.<\/li><\/ul>\n
\n- As market is trading at the bottom of the channel, bulls generally look for small scalps near these levels above a strong bull bar.<\/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-Double-Top-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n- General Discussion<\/strong>
- The market is in a bear trend on the daily chart. The market has many reasons for bears to sell short, including a double top, a cup & handle, and a breakout gap.<\/li><\/ul>\n
\n- In addition to a pending measured move of the cup & handle pattern, the market is currently trading close to the leg 1 = leg 2 measured move target which is acting like a support.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- On the left, you can see that bulls can form powerful bull legs, but they were never successful in getting a follow-through leg.<\/li><\/ul>
- The market attempted to close the bear breakout gap this week, but the bulls were unable to do so, which encouraged more bears to sell the double top.<\/li><\/ul>\n
\n- The market traded sideways for a few bars after reaching the leg 1 = leg 2 measured move target (at bar 1). This suggests that some bears booked profits at the measured move level.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- Because the market created a breakout gap, traders would anticipate a measured move down.<\/li><\/ul>
- The market is currently forming a double top, also known as a double top bear flag, while it is in a bear trend.<\/li><\/ul>\n
<\/a><\/figure>\n\n\n\n\n
- \n
- General Discussion<\/strong>
- The market is in a strong bear channel, and no strong bull bars have formed in the past seven weeks. The most recent bull bar, which closed close to its high but wasn’t very large, didn’t get a follow-through.<\/li><\/ul>
- Since there are no indications that the market is bullish, bulls would hold off on buying until they observe a strong bull bar closing close to the high.<\/li><\/ul>\n
- \n
- Given that the market is trading near the large round number, which serves as price support, as well as the channel’s bottom, some bears would refrain from selling at this level.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- A big round number attracts the price like a magnet, and consequently, sharp moves and reversals are frequently seen close by.<\/li><\/ul>
- There\u2019s an pending measured move of the double top (depicted using the brown solid line) which would also act like a magnet.<\/li><\/ul>\n
- \n
- Traders who are already in a position would be quick to exit their trades if the market started to show reversal signs because they are aware that sharp price moves are frequent near big round numbers.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- Usually, the likelihood of a channel breaking out (on either side) increases as the number of legs in the channel increases. A bull breakout of a bear channel has a 75% chance of occurring, while a bear breakout of a bear channel has a 25% chance of occurring.<\/li><\/ul>\n
- \n
- As market is trading at the bottom of the channel, bulls generally look for small scalps near these levels above a strong bull bar.<\/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 is in a bear trend on the daily chart. The market has many reasons for bears to sell short, including a double top, a cup & handle, and a breakout gap.<\/li><\/ul>\n
- \n
- In addition to a pending measured move of the cup & handle pattern, the market is currently trading close to the leg 1 = leg 2 measured move target which is acting like a support.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- On the left, you can see that bulls can form powerful bull legs, but they were never successful in getting a follow-through leg.<\/li><\/ul>
- The market attempted to close the bear breakout gap this week, but the bulls were unable to do so, which encouraged more bears to sell the double top.<\/li><\/ul>\n
- \n
- The market traded sideways for a few bars after reaching the leg 1 = leg 2 measured move target (at bar 1). This suggests that some bears booked profits at the measured move level.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- Because the market created a breakout gap, traders would anticipate a measured move down.<\/li><\/ul>
- The market is currently forming a double top, also known as a double top bear flag, while it is in a bear trend.<\/li><\/ul>\n
- Because the market created a breakout gap, traders would anticipate a measured move down.<\/li><\/ul>
- The market attempted to close the bear breakout gap this week, but the bulls were unable to do so, which encouraged more bears to sell the double top.<\/li><\/ul>\n
- On the left, you can see that bulls can form powerful bull legs, but they were never successful in getting a follow-through leg.<\/li><\/ul>
- The market is in a bear trend on the daily chart. The market has many reasons for bears to sell short, including a double top, a cup & handle, and a breakout gap.<\/li><\/ul>\n
- General Discussion<\/strong>
- As market is trading at the bottom of the channel, bulls generally look for small scalps near these levels above a strong bull bar.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
- Usually, the likelihood of a channel breaking out (on either side) increases as the number of legs in the channel increases. A bull breakout of a bear channel has a 75% chance of occurring, while a bear breakout of a bear channel has a 25% chance of occurring.<\/li><\/ul>\n
- There\u2019s an pending measured move of the double top (depicted using the brown solid line) which would also act like a magnet.<\/li><\/ul>\n
- A big round number attracts the price like a magnet, and consequently, sharp moves and reversals are frequently seen close by.<\/li><\/ul>
- Since there are no indications that the market is bullish, bulls would hold off on buying until they observe a strong bull bar closing close to the high.<\/li><\/ul>\n
- The market is in a strong bear channel, and no strong bull bars have formed in the past seven weeks. The most recent bull bar, which closed close to its high but wasn’t very large, didn’t get a follow-through.<\/li><\/ul>