Nifty updates with recent price action
This is an updated idea based on the recent trends in the nifty price action chart.
Earlier we speculated that Nifty might take a route of complex correction but the price action base shift is looking too fast for a correction. If Nifty is not doing correction then what?????
Reversal patterns from top
We have plenty of reversal patterns like
1) head and shoulders
2) symmetric triangle formations.
3) rounding tops
4) rectangles
5) double/triple tops etc.....
Today we are looking at H&S pattern ( remember these pattern are more valid at daily or higher level time frames.) This is one of the more common and, by all odds, the most reliable of the Major Reversal Patterns. Volume is the main factor that indicates this formation and will keep it simple.
Left shoulder high volume, head with volume but less than left shoulder and right shoulder formation with less /flat volume than head formation.
Important points
1) first and foremost, neckline should be broken
2) After the break , price will mostly come for a retest ( since the formation is at higher time frame).
3) if price drops below neckline and exceeds the length of right shoulder, beware that price is not coming for retest and fall continues.
current head formation is close to ~1550 points and a drop of further ~1550 points will take nifty to opening price level of June elections (June 4th 2025).
This is the idea, lets see if this happens, will update more if see any shifts in price action bases.
Cheers,
Happy Trading
Earlier we speculated that Nifty might take a route of complex correction but the price action base shift is looking too fast for a correction. If Nifty is not doing correction then what?????
Reversal patterns from top
We have plenty of reversal patterns like
1) head and shoulders
2) symmetric triangle formations.
3) rounding tops
4) rectangles
5) double/triple tops etc.....
Today we are looking at H&S pattern ( remember these pattern are more valid at daily or higher level time frames.) This is one of the more common and, by all odds, the most reliable of the Major Reversal Patterns. Volume is the main factor that indicates this formation and will keep it simple.
Left shoulder high volume, head with volume but less than left shoulder and right shoulder formation with less /flat volume than head formation.
Important points
1) first and foremost, neckline should be broken
2) After the break , price will mostly come for a retest ( since the formation is at higher time frame).
3) if price drops below neckline and exceeds the length of right shoulder, beware that price is not coming for retest and fall continues.
current head formation is close to ~1550 points and a drop of further ~1550 points will take nifty to opening price level of June elections (June 4th 2025).
This is the idea, lets see if this happens, will update more if see any shifts in price action bases.
Cheers,
Happy Trading
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