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\/06\/Nifty-50-Near-All-Time-High-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n\n- General Discussion<\/strong>
- Because the market is currently trading inside of a strong, tight bull channel, bears shouldn’t sell just yet. Bears should hold off on selling the market until a few solid bear bars that can confirm the trading range top.<\/li><\/ul>
- Bulls shouldn’t open a new long position, even if the market is trading inside a tight bull channel. This is so because the market is currently trading close to its all-time high and potential trading range (resistance).<\/li><\/ul>\n
\n- o Bulls who have already entered a long position may choose to close it out or wait for the market to reach the measured move target for the measuring gap.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- Whenever you want to trade a reversal you have to analyse a few things:
- How strong the trend is?<\/li><\/ul>
- How strong the reversal attempt is?<\/li><\/ul>
- How strong the follow-through bars of the reversal attempt are?<\/li><\/ul><\/li><\/ul>
- How strong the trend is?
- Prior to trading a reversal, it is essential to assess the trend’s strength.<\/li><\/ul>
- The strength of the trend decides how much strong a reversal attempt needs be to reverse the trend.<\/li><\/ul>
- Strength of the trend is directly proportional to the strength of reversal it needs to reverse market.<\/li><\/ul><\/li><\/ul>
- How strong the reversal is?
- How can you compare the strength of the trend and the reversal, then?<\/li><\/ul>
- Let’s use point A on the chart as an example to illustrate this.<\/li><\/ul>
- The bars to the left of A are clearly in a strong bear trend.<\/li><\/ul>
- Note that in the bear trend (on the left of A) the bear bars are closing near their lows and the bear bars are having big bodies.<\/li><\/ul>
- This tells us that we need strong bull bars with big bodies to reverse the market.<\/li><\/ul>
- And as you can see the immediate bar after A was strong enough to convince the bulls to buy and caused a reversal.<\/li><\/ul><\/li><\/ul>
- How strong the follow-through bars of the reversal attempt are?
- If the follow-through bars are strong enough, a reversal can still occur even if the reversal itself is not strong.<\/li><\/ul>
- Take a look at Point B (on the chart), where a reversal was still caused even though the reversal bar was not particularly strong.<\/li><\/ul>
- The reason for this is that the follow-through bars (bars after B) were powerful bear bars that closed close to their lows, and these alone were sufficient to bring about a reversal.<\/li><\/ul><\/li><\/ul>
- Given that you now understand how to trade reversals, what do you think about Bar 1 (shown on the chart) and its potential to reverse the current strong bull trend?<\/li><\/ul>\n
\n- What do you think of Bar 2 in terms of whether it is a good follow-through bar for Bar 1?<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- The market is currently trading close to its all-time high, and the big round number 19000 is also getting close to a target for a measured move.<\/li><\/ul>\n
\n- The likelihood of a trading range is higher if bulls are unable to achieve a strong breakout above the record high because all of these levels are accumulated above and will act as strong resistance.<\/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\/06\/Nifty-50-Bull-Channel-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n- General Discussion<\/strong>
- The market is in a strong bull trend on the daily chart, so bears should hold off on selling until they see a convincing attempt to reverse the trend.<\/li><\/ul>
- Bulls should prefer to wait before buying as the market is approaching the highs of the bull channel and the cup-and-handle measured move, both of which will act as resistance.<\/li><\/ul>\n
\n- Bulls who are long positions can sell at the cup and handle measured move target or hold the position until the market makes a strong attempt to reverse the trend.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- As market is trading inside a narrow bull channel there is less room for the bears to make profit.<\/li><\/ul>
- Bear scalpers should be entering into a short position near the high of channel with limit orders.<\/li><\/ul>\n
\n- In a narrow bull channel, bulls can enter with either
- Buy limit orders \u2013 Placing at the low of weak bear bars or strong bull bars.<\/li><\/ul>\n
\n- Buy stop orders \u2013 Placing at the high of strong bull bars or weak bear bars.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- Market tried to reverse the trend by giving a bear breakout of the wedge top, but bears did not get a good follow-through after the breakout (on Bar-1), instead the breakout was followed by a bull bar.<\/li><\/ul>
- A large number of bulls will be selling off their long positions close to the cup and handle measured move target, which could result in a minor bear leg.<\/li><\/ul>\n
<\/a><\/figure>\n\n\n\n\n
- \n
- General Discussion<\/strong>
- Because the market is currently trading inside of a strong, tight bull channel, bears shouldn’t sell just yet. Bears should hold off on selling the market until a few solid bear bars that can confirm the trading range top.<\/li><\/ul>
- Bulls shouldn’t open a new long position, even if the market is trading inside a tight bull channel. This is so because the market is currently trading close to its all-time high and potential trading range (resistance).<\/li><\/ul>\n
- \n
- o Bulls who have already entered a long position may choose to close it out or wait for the market to reach the measured move target for the measuring gap.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- Whenever you want to trade a reversal you have to analyse a few things:
- How strong the trend is?<\/li><\/ul>
- How strong the reversal attempt is?<\/li><\/ul>
- How strong the follow-through bars of the reversal attempt are?<\/li><\/ul><\/li><\/ul>
- How strong the trend is?
- Prior to trading a reversal, it is essential to assess the trend’s strength.<\/li><\/ul>
- The strength of the trend decides how much strong a reversal attempt needs be to reverse the trend.<\/li><\/ul>
- Strength of the trend is directly proportional to the strength of reversal it needs to reverse market.<\/li><\/ul><\/li><\/ul>
- How strong the reversal is?
- How can you compare the strength of the trend and the reversal, then?<\/li><\/ul>
- Let’s use point A on the chart as an example to illustrate this.<\/li><\/ul>
- The bars to the left of A are clearly in a strong bear trend.<\/li><\/ul>
- Note that in the bear trend (on the left of A) the bear bars are closing near their lows and the bear bars are having big bodies.<\/li><\/ul>
- This tells us that we need strong bull bars with big bodies to reverse the market.<\/li><\/ul>
- And as you can see the immediate bar after A was strong enough to convince the bulls to buy and caused a reversal.<\/li><\/ul><\/li><\/ul>
- How strong the follow-through bars of the reversal attempt are?
- If the follow-through bars are strong enough, a reversal can still occur even if the reversal itself is not strong.<\/li><\/ul>
- Take a look at Point B (on the chart), where a reversal was still caused even though the reversal bar was not particularly strong.<\/li><\/ul>
- The reason for this is that the follow-through bars (bars after B) were powerful bear bars that closed close to their lows, and these alone were sufficient to bring about a reversal.<\/li><\/ul><\/li><\/ul>
- Given that you now understand how to trade reversals, what do you think about Bar 1 (shown on the chart) and its potential to reverse the current strong bull trend?<\/li><\/ul>\n
- \n
- What do you think of Bar 2 in terms of whether it is a good follow-through bar for Bar 1?<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- The market is currently trading close to its all-time high, and the big round number 19000 is also getting close to a target for a measured move.<\/li><\/ul>\n
- \n
- The likelihood of a trading range is higher if bulls are unable to achieve a strong breakout above the record high because all of these levels are accumulated above and will act as strong resistance.<\/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 strong bull trend on the daily chart, so bears should hold off on selling until they see a convincing attempt to reverse the trend.<\/li><\/ul>
- Bulls should prefer to wait before buying as the market is approaching the highs of the bull channel and the cup-and-handle measured move, both of which will act as resistance.<\/li><\/ul>\n
- \n
- Bulls who are long positions can sell at the cup and handle measured move target or hold the position until the market makes a strong attempt to reverse the trend.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- As market is trading inside a narrow bull channel there is less room for the bears to make profit.<\/li><\/ul>
- Bear scalpers should be entering into a short position near the high of channel with limit orders.<\/li><\/ul>\n
- \n
- In a narrow bull channel, bulls can enter with either
- Buy limit orders \u2013 Placing at the low of weak bear bars or strong bull bars.<\/li><\/ul>\n
- \n
- Buy stop orders \u2013 Placing at the high of strong bull bars or weak bear bars.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- Market tried to reverse the trend by giving a bear breakout of the wedge top, but bears did not get a good follow-through after the breakout (on Bar-1), instead the breakout was followed by a bull bar.<\/li><\/ul>
- A large number of bulls will be selling off their long positions close to the cup and handle measured move target, which could result in a minor bear leg.<\/li><\/ul>\n
- Market tried to reverse the trend by giving a bear breakout of the wedge top, but bears did not get a good follow-through after the breakout (on Bar-1), instead the breakout was followed by a bull bar.<\/li><\/ul>
- Buy limit orders \u2013 Placing at the low of weak bear bars or strong bull bars.<\/li><\/ul>\n
- In a narrow bull channel, bulls can enter with either
- Bear scalpers should be entering into a short position near the high of channel with limit orders.<\/li><\/ul>\n
- As market is trading inside a narrow bull channel there is less room for the bears to make profit.<\/li><\/ul>
- Bulls should prefer to wait before buying as the market is approaching the highs of the bull channel and the cup-and-handle measured move, both of which will act as resistance.<\/li><\/ul>\n
- The market is in a strong bull trend on the daily chart, so bears should hold off on selling until they see a convincing attempt to reverse the trend.<\/li><\/ul>
- General Discussion<\/strong>
- The likelihood of a trading range is higher if bulls are unable to achieve a strong breakout above the record high because all of these levels are accumulated above and will act as strong resistance.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
- The market is currently trading close to its all-time high, and the big round number 19000 is also getting close to a target for a measured move.<\/li><\/ul>\n
- Given that you now understand how to trade reversals, what do you think about Bar 1 (shown on the chart) and its potential to reverse the current strong bull trend?<\/li><\/ul>\n
- The reason for this is that the follow-through bars (bars after B) were powerful bear bars that closed close to their lows, and these alone were sufficient to bring about a reversal.<\/li><\/ul><\/li><\/ul>
- Take a look at Point B (on the chart), where a reversal was still caused even though the reversal bar was not particularly strong.<\/li><\/ul>
- If the follow-through bars are strong enough, a reversal can still occur even if the reversal itself is not strong.<\/li><\/ul>
- How strong the follow-through bars of the reversal attempt are?
- And as you can see the immediate bar after A was strong enough to convince the bulls to buy and caused a reversal.<\/li><\/ul><\/li><\/ul>
- This tells us that we need strong bull bars with big bodies to reverse the market.<\/li><\/ul>
- Note that in the bear trend (on the left of A) the bear bars are closing near their lows and the bear bars are having big bodies.<\/li><\/ul>
- The bars to the left of A are clearly in a strong bear trend.<\/li><\/ul>
- Let’s use point A on the chart as an example to illustrate this.<\/li><\/ul>
- How can you compare the strength of the trend and the reversal, then?<\/li><\/ul>
- How strong the reversal is?
- Strength of the trend is directly proportional to the strength of reversal it needs to reverse market.<\/li><\/ul><\/li><\/ul>
- The strength of the trend decides how much strong a reversal attempt needs be to reverse the trend.<\/li><\/ul>
- Prior to trading a reversal, it is essential to assess the trend’s strength.<\/li><\/ul>
- How strong the trend is?
- How strong the follow-through bars of the reversal attempt are?<\/li><\/ul><\/li><\/ul>
- How strong the reversal attempt is?<\/li><\/ul>
- How strong the trend is?<\/li><\/ul>
- Whenever you want to trade a reversal you have to analyse a few things:
- Bulls shouldn’t open a new long position, even if the market is trading inside a tight bull channel. This is so because the market is currently trading close to its all-time high and potential trading range (resistance).<\/li><\/ul>\n
- Because the market is currently trading inside of a strong, tight bull channel, bears shouldn’t sell just yet. Bears should hold off on selling the market until a few solid bear bars that can confirm the trading range top.<\/li><\/ul>