BANKNIFTY:-We can see here how Bollinger band ,Gaps,DMI, RSI & Fibbonaci retracement work as a conformation if it mix with chart patterns.
See late April how Doji made by gap up its upper weak is out of Bollingerband,DMI also taking a crossover there next day it was a negative crossover.See at mid May first green arrow it was a Bullish Harami pattern and it was a out of band but it didn’t go up see second green arrow it was a Harami & DMI also given a positive crossover.See at early June a Doji or a Grave stone was madeit was a sign that reversal is near then stock tried to break the 65 EMA but it didn’t work it was a strong sign of bulls losing their steam taken a soupport at 20MA.See how stock taken a soupport at 65EMA.
In late August stock was taken a resisitence of march Gapdown and also 50% retracement ,see RSI & DMI showing at their high it was a sign reversal.See at late SEP stock was at 50 of its prior rally also made a Tweezer bottom see RSI at his low also crossed little bit Bollinger band .
Now stock made a Hanging man tap at his Bollinger band , RSI & DMI showing Overbought.It was also near its strong Resisitence I WAS FORECSTING A BOUNCE BACK TO NEAR ITS NECKLINE!