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\/2023\/04\/Nifty-50-Wedge-Top-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n\n- General Discussion<\/strong>
- The bears who were waiting to short for the second leg down after the three consecutive bear bars should wait since the bull bar is really strong.<\/li><\/ul>
- The bull bar is powerful and the market is producing a higher low double bottom, which may persuade some bulls to buy the bull bar’s high.<\/li><\/ul>\n
\n- Bears were unable to turn the market around since the double top received no follow-through bars following a strong bear leg of three successive bear bars.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- In comparison to the bars on the left, the size of the three bear bars that followed the formation of the double top was small.<\/li><\/ul>
- It’s vital to remember that bears must create bear bars that are just as strong as bull bars in order for the market to reverse.<\/li><\/ul>\n
\n- Here’s an illustration:
- Consider that the market is in a strong bull trend.<\/li><\/ul>\n
\n- In order for a reversal to occur, the market must develop bear bars that are convincing enough to cause bulls to sell their holdings and bears to open new short positions.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- Market is currently trading inside a wedge top.<\/li><\/ul>\n
\n- How reversals take place<\/strong>: Consider the monthly chart shown above.
- Normally, the market will attempt to reverse by establishing a (very) strong bear leg initially, which will eventually result in a reversal.<\/li><\/ul><\/li>\n\n\n\n
- However, if bears are unable to produce a powerful bear leg like in the chart above, a double top would be their next chance to turn the market around.<\/li><\/ul><\/li>\n\n\n\n
- If bears are not able to get bear follow-through bars even after a double top then this disappoints the bears and gives bulls some confidence to buy which leads to a wedge top.<\/li><\/ul><\/li>\n\n\n\n
- Bears get their last chance to cause a reversal by selling for bear breakout of the wedge top. <\/li><\/ul><\/li>\n\n\n\n
- But at this point odds of a trading range are higher than a reversal.<\/li><\/ul>\n
\n- If bears are unable to produce a bear breakout of the wedge top then this gives bulls confidence that the bull trend would continue and pushes the prices up.<\/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\/2023\/04\/Nifty-50-Head-Shoulders-1-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n- General Discussion<\/strong>
- Market is in a strong bull leg after the bull breakout of the bear channel.<\/li><\/ul>\n
\n- Bears should avoid selling the market until they see some strong consecutive bear bars again forming in the market.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- The bull leg-B was a surprise move following the strong bear leg-A (indicated in red letters). Second legs in the same direction come after surprise moves.<\/li><\/ul>
- Leg-B was unexpected since traders expected the second leg to be down after the strong leg-A, but leg-B was completely the contrary of what traders anticipated.<\/li><\/ul>\n
\n- Bulls anticipated at least a second leg up in the market before any reversal because leg-B was a surprise move. So, in order to prepare for the second leg up, bulls place buy limit orders at the low of bull bars.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- A head and shoulders pattern is developing in the market. Some bulls would place their stop-loss order at the low of the right shoulder of the head and shoulders pattern and buy at the high of the most recent bull bar.<\/li><\/ul>\n
\n- Market has given breakout of the bear channel which means that chances of a big trading range are higher rather than a trend.
Read more about the market cycle<\/a>.<\/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 bears who were waiting to short for the second leg down after the three consecutive bear bars should wait since the bull bar is really strong.<\/li><\/ul>
- The bull bar is powerful and the market is producing a higher low double bottom, which may persuade some bulls to buy the bull bar’s high.<\/li><\/ul>\n
- \n
- Bears were unable to turn the market around since the double top received no follow-through bars following a strong bear leg of three successive bear bars.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- In comparison to the bars on the left, the size of the three bear bars that followed the formation of the double top was small.<\/li><\/ul>
- It’s vital to remember that bears must create bear bars that are just as strong as bull bars in order for the market to reverse.<\/li><\/ul>\n
- \n
- Here’s an illustration:
- Consider that the market is in a strong bull trend.<\/li><\/ul>\n
- \n
- In order for a reversal to occur, the market must develop bear bars that are convincing enough to cause bulls to sell their holdings and bears to open new short positions.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- Market is currently trading inside a wedge top.<\/li><\/ul>\n
- \n
- How reversals take place<\/strong>: Consider the monthly chart shown above.
- Normally, the market will attempt to reverse by establishing a (very) strong bear leg initially, which will eventually result in a reversal.<\/li><\/ul><\/li>\n\n\n\n
- However, if bears are unable to produce a powerful bear leg like in the chart above, a double top would be their next chance to turn the market around.<\/li><\/ul><\/li>\n\n\n\n
- If bears are not able to get bear follow-through bars even after a double top then this disappoints the bears and gives bulls some confidence to buy which leads to a wedge top.<\/li><\/ul><\/li>\n\n\n\n
- Bears get their last chance to cause a reversal by selling for bear breakout of the wedge top. <\/li><\/ul><\/li>\n\n\n\n
- But at this point odds of a trading range are higher than a reversal.<\/li><\/ul>\n
- \n
- If bears are unable to produce a bear breakout of the wedge top then this gives bulls confidence that the bull trend would continue and pushes the prices up.<\/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>
- Market is in a strong bull leg after the bull breakout of the bear channel.<\/li><\/ul>\n
- \n
- Bears should avoid selling the market until they see some strong consecutive bear bars again forming in the market.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- The bull leg-B was a surprise move following the strong bear leg-A (indicated in red letters). Second legs in the same direction come after surprise moves.<\/li><\/ul>
- Leg-B was unexpected since traders expected the second leg to be down after the strong leg-A, but leg-B was completely the contrary of what traders anticipated.<\/li><\/ul>\n
- \n
- Bulls anticipated at least a second leg up in the market before any reversal because leg-B was a surprise move. So, in order to prepare for the second leg up, bulls place buy limit orders at the low of bull bars.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- A head and shoulders pattern is developing in the market. Some bulls would place their stop-loss order at the low of the right shoulder of the head and shoulders pattern and buy at the high of the most recent bull bar.<\/li><\/ul>\n
- \n
- Market has given breakout of the bear channel which means that chances of a big trading range are higher rather than a trend.
Read more about the market cycle<\/a>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
\n\n\n\nMarket analysis reports archive<\/h3>\n\n\n\n
- Market has given breakout of the bear channel which means that chances of a big trading range are higher rather than a trend.
- A head and shoulders pattern is developing in the market. Some bulls would place their stop-loss order at the low of the right shoulder of the head and shoulders pattern and buy at the high of the most recent bull bar.<\/li><\/ul>\n
- Leg-B was unexpected since traders expected the second leg to be down after the strong leg-A, but leg-B was completely the contrary of what traders anticipated.<\/li><\/ul>\n
- The bull leg-B was a surprise move following the strong bear leg-A (indicated in red letters). Second legs in the same direction come after surprise moves.<\/li><\/ul>
- Market is in a strong bull leg after the bull breakout of the bear channel.<\/li><\/ul>\n
- General Discussion<\/strong>
- If bears are unable to produce a bear breakout of the wedge top then this gives bulls confidence that the bull trend would continue and pushes the prices up.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
- But at this point odds of a trading range are higher than a reversal.<\/li><\/ul>\n
- How reversals take place<\/strong>: Consider the monthly chart shown above.
- Market is currently trading inside a wedge top.<\/li><\/ul>\n
- Consider that the market is in a strong bull trend.<\/li><\/ul>\n
- Here’s an illustration:
- It’s vital to remember that bears must create bear bars that are just as strong as bull bars in order for the market to reverse.<\/li><\/ul>\n
- In comparison to the bars on the left, the size of the three bear bars that followed the formation of the double top was small.<\/li><\/ul>
- The bull bar is powerful and the market is producing a higher low double bottom, which may persuade some bulls to buy the bull bar’s high.<\/li><\/ul>\n
- The bears who were waiting to short for the second leg down after the three consecutive bear bars should wait since the bull bar is really strong.<\/li><\/ul>