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Query - Measured move based on trading range
I need your inputs with respect to my assessment on 5 min Banknifty (Index in India) chart on concept of MM based on TR. I have pasted chart and my comments below.
Cheers and thanks!
1. Very strong bear BO. 10 mins into closing, we had reversal and strong bull bar. This reversal was primarily due to bears taking profits rather than bulls buying. Please confirm.
2. On following day, we had gap-up which was immediately sold-off as can be seen from 3 strong bear bars. Odds still favored bears and "always in" will be short. Instead bear BO entered into more than 20 bar trading range. The odds thus becoming equal for bears and bulls. Please confirm.
3. The market gapped up on next day which as Al mentions is strength. There was PB around 50% of yesterday's BO. With this gap-up and bull BO in latter part of preceding day, market will be "always in" long with MM based on prior day range. Market closed around MM range. Please confirm if this assessment makes sense based on PA principles.
MM - Shown by green lines.
My apologies for typo in the screen shot. My keyboard is having some issues.