Nifty Future opened at the previous day close and continued the previous days price action. But close to the Big Round Number of 5600 Nifty Future rejected this price sharply and moved above the previous day swing high of 5620. Nifty Future failed to move up till any decision point and spent the rest of the day trying to take out the days open. Nifty Future started moving in a downward channel but after the failure to take out the days low. Nifty Future price drifted into a sideways channel. There were a number of strong trend bars but it lacked follow through in both directions. A trading range day with plenty of breakout failures. All trade opportunities today was on breakout failures.
I have posted my observations on the significant bars
Bar 1: The first bar of the day was the continuation of the previous day price action and the open was at the previous day close. This bar was a strong Bear Trend Bar
Bar 2: This is a strong Bull trend twin Reversal signal bar that closes above the days open and the previous days close. This bar has reversed the bearish sentiment. The next bar is a weak doji inside bar with high below the 21EMA signifying lack of follow through.
Bar 3: This is strong Bull trend bar that has a clean breakout above the 21EMA. After yesterdays down move first gap bar above 21EMA.
Bar 4: Strong Bear trend Bar that reverses the close of the last 4 bars and breaks out below the 21EMA. The next bar though a doji bar is not an inside bar. Price breaks the downward trend line created by the Bar 3 swing high.
Bar 5: This is an entry bar for a long trade as it pulls away from the 21EMA, upward trend line and the downward trend line. Add long position here with stop loss below the 21EMA. The next bar is a strong bull trend bar that breaks out above the Initial range high.
Bar 6: This is a strong bear trend reversal bar but it is not able to reverse price below the Initial Range High. The next bar is an inside doji bar. Bring stop loss one tick below the Initial Range high.
Bar 7: The bar prior to this bar is the second attempt to scale a new high and the low touches the upward trend line. Bring stop loss one tick below this bar's low. The current bar results in the stop loss getting blown. This strong bear trend bar breakout below the Initial Range high and stops at the 21EMA. The next bar after this is a weak doji bar but it has a low that is lower than the current bar. Two bar after the current bar is a strong Bear trend bar that breaks out below the 21EMA. But the bar after this bar is a doji and there is no follow through
Bar 8: Strong Bull trend Reversal Bar at the Previous Day Close and as this bar is a part of the steep downward slope. It could be a bear flag. Not correct to add long position.
Bar 9: This is a strong Bull trend Bar attempt to break out of the 21EMA. This is the first pullback to the 21EMA after the down move. Add short position above the 21EMA with stop loss just below the Initial Range High and target the days low. The next bar resumes the down move.
Bar 10: A weak BOF and the next bar is a weak doji signifying lack of reversal strength. Hold short position
Bar 11: This is a stronger break out attempt and right time to tighten stop and bring it two ticks above the Previous Day Close. This is single bar reversal and the second BOF. The second entry is generally stronger and the stop loss is blown.
Bar 12: Strong Bull trend Bar that could be an entry bar for a long trade but the confluence of the downward trend line and the Initial Range high would have to be broken for a strong upmove. Also price was in a trading range for a short time period to have a big move.
Bar 13: This is a single bar reversal signal of the downward trend line and Initial range high. First signal to add short position
Bar 14: This is a strong follow through bar for the down move. This is a 2-leg pullback and the top of the bar forms a swing high. Add short position at the pullback to the downward trend line at the next bar. The stop loss is at the Initial range high and target is the successful break of the Previous Days Close.
Bar 15: This bar is a strong Bear trend bar which breaks the Previous Day Close and stops before the days low. Close the short trade and re enter only if price breaks the days low conclusively.
Bar 16: A weak single bar reversal of the downward trend line and the next bar is a inside doji bar. Price is increasingly behaving like a downward channel tight trading range with plenty of upside and down side breakout failures and long trend bars that fail frequently
Bar 17: A strong bear trend reversal bar that reversed the move above the downward trend line and forms a part of three bar reversal pattern.
Bar 18: This bar was a strong bear trend bar but before close it reverses its down move
Bar 19: This bar started as a strong bull trend bar till the downward trend line but closed at the low forming a failure of a failed breakout.
Bar 20: This Bar starts the attempt to break the downward trend line but not able to close above the downward trend line.
Bar 21: This bar starts as a very large Bear trend bar with high volume but bounces off sharply from the days low and Big round number and closes above the downward trend line.
Bar 22: This bar reverses the break above the down ward trend line but price has moved from the downward channel to a sideways trading range.
Bar 23: A strong reversal bear trend bar but as there are overlapping bars it is part of a trading range.
Bar 24: Bull trend Bar that moves price close to the days open.
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