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\/08\/Nifty-50-Trading-Range-Price-Action-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n\n- General Discussion<\/strong>
- There is almost no room for the bears to sell profitably as the market is trading close to the bottom of the tight\u00a0bull channel.<\/li><\/ul><\/li>\n\n\n\n
- The tight bull channel’s bottom trend channel line, as well as the first (high-1) or second (high-2) entries, are potential entry points for bulls.<\/li><\/ul>\n
\n- Bears should not be entering until market forms a fourth consecutive big bear bar closing near its low.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- Nifty 50 is trading near the big round number which increases the probability of market going sideways.<\/li><\/ul>
- Market has clearly started forming trading range price action like; tails above and below bars, overlapping bodies of the bars.<\/li><\/ul>
- The tight bull channel is very strong, so probability of a reversal on the first reversal attempt is less likely.<\/li><\/ul>\n
\n- Probability of a 2nd<\/sup> leg up before a reversal is more likely.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- Market formed two consecutive inside bar patterns, this is a sign of trading range price action.<\/li><\/ul>\n
\n- As market is trading near the big round number, traders can expect trading range price action for next few weeks on the weekly chart.<\/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\/08\/Nifty-50-Head-and-Shoulder-1-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n\n- General Discussion<\/strong>
- Nifty 50 is trading inside the bear channel, and currently is trading close to the neck of head and shoulders pattern.<\/li><\/ul>
- Both bulls and bears should wait before initializing a fresh position.<\/li><\/ul>
- If market is not able to give a bear breakout of the head and shoulders, but instead forms strong bull bars, then bulls can buy.<\/li><\/ul>\n
\n- Bears can sell the market if it gives a strong bear breakout of the head and shoulders pattern with a follow-through bar.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- In the last 10 to 15 bars bulls have not been able form a strong bull bar, so a strong bear breakout of the neckline might attract bears to sell for a trend reversal.<\/li><\/ul>
- If bears are not able to give a successful breakout or bulls are able to give a bull breakout of the bear channel then chances of a big trading range (equivalent to the height of the bear channel) are higher.<\/li><\/ul>\n
\n- With respect to previous reversal attempts (which were small and weak), this time bears were able to give a reasonably big reversal attempt (head and shoulders) which has the potential to reverse the market.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- A head and shoulders pattern is a breakout mode pattern which has around 50% chances of successful breakout.<\/li><\/ul>
- As the bull trend is strong, the bears who are selling the bear breakout of the head and shoulders pattern should maintain a high risk reward ratio for a positive traders equation.<\/li><\/ul>\n
<\/a><\/figure>\n\n\n\n\n
- \n
- General Discussion<\/strong>
- There is almost no room for the bears to sell profitably as the market is trading close to the bottom of the tight\u00a0bull channel.<\/li><\/ul><\/li>\n\n\n\n
- The tight bull channel’s bottom trend channel line, as well as the first (high-1) or second (high-2) entries, are potential entry points for bulls.<\/li><\/ul>\n
- \n
- Bears should not be entering until market forms a fourth consecutive big bear bar closing near its low.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into the price action<\/strong>
- Nifty 50 is trading near the big round number which increases the probability of market going sideways.<\/li><\/ul>
- Market has clearly started forming trading range price action like; tails above and below bars, overlapping bodies of the bars.<\/li><\/ul>
- The tight bull channel is very strong, so probability of a reversal on the first reversal attempt is less likely.<\/li><\/ul>\n
- \n
- Probability of a 2nd<\/sup> leg up before a reversal is more likely.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- Market formed two consecutive inside bar patterns, this is a sign of trading range price action.<\/li><\/ul>\n
- \n
- As market is trading near the big round number, traders can expect trading range price action for next few weeks on the weekly chart.<\/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>
- Nifty 50 is trading inside the bear channel, and currently is trading close to the neck of head and shoulders pattern.<\/li><\/ul>
- Both bulls and bears should wait before initializing a fresh position.<\/li><\/ul>
- If market is not able to give a bear breakout of the head and shoulders, but instead forms strong bull bars, then bulls can buy.<\/li><\/ul>\n
- \n
- Bears can sell the market if it gives a strong bear breakout of the head and shoulders pattern with a follow-through bar.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Deeper into price action<\/strong>
- In the last 10 to 15 bars bulls have not been able form a strong bull bar, so a strong bear breakout of the neckline might attract bears to sell for a trend reversal.<\/li><\/ul>
- If bears are not able to give a successful breakout or bulls are able to give a bull breakout of the bear channel then chances of a big trading range (equivalent to the height of the bear channel) are higher.<\/li><\/ul>\n
- \n
- With respect to previous reversal attempts (which were small and weak), this time bears were able to give a reasonably big reversal attempt (head and shoulders) which has the potential to reverse the market.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Patterns<\/strong>
- A head and shoulders pattern is a breakout mode pattern which has around 50% chances of successful breakout.<\/li><\/ul>
- As the bull trend is strong, the bears who are selling the bear breakout of the head and shoulders pattern should maintain a high risk reward ratio for a positive traders equation.<\/li><\/ul>\n
- A head and shoulders pattern is a breakout mode pattern which has around 50% chances of successful breakout.<\/li><\/ul>
- If bears are not able to give a successful breakout or bulls are able to give a bull breakout of the bear channel then chances of a big trading range (equivalent to the height of the bear channel) are higher.<\/li><\/ul>\n
- In the last 10 to 15 bars bulls have not been able form a strong bull bar, so a strong bear breakout of the neckline might attract bears to sell for a trend reversal.<\/li><\/ul>
- If market is not able to give a bear breakout of the head and shoulders, but instead forms strong bull bars, then bulls can buy.<\/li><\/ul>\n
- Both bulls and bears should wait before initializing a fresh position.<\/li><\/ul>
- Nifty 50 is trading inside the bear channel, and currently is trading close to the neck of head and shoulders pattern.<\/li><\/ul>
- General Discussion<\/strong>
- As market is trading near the big round number, traders can expect trading range price action for next few weeks on the weekly chart.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
- Patterns<\/strong>
- Probability of a 2nd<\/sup> leg up before a reversal is more likely.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- The tight bull channel is very strong, so probability of a reversal on the first reversal attempt is less likely.<\/li><\/ul>\n
- Market has clearly started forming trading range price action like; tails above and below bars, overlapping bodies of the bars.<\/li><\/ul>
- Nifty 50 is trading near the big round number which increases the probability of market going sideways.<\/li><\/ul>
- The tight bull channel’s bottom trend channel line, as well as the first (high-1) or second (high-2) entries, are potential entry points for bulls.<\/li><\/ul>\n