BANKNIFTY stuck in a Range in 1 hour timeframe
Observations
BANKNIFTY has been consolidating within a defined range for the past 4 trading sessions in one hour candle chart
Price action has been characterized by lack of strong directional bias
Trading Idea
Breakout Strategy:
Long Entry: A decisive break above the resistance level 49660 with increased volume and confirmation from indicators.
Stop-Loss: Below the recent swing low within the range.
Target: Risk-Reward ratio of 1:2
Short Entry: A decisive break below the support level 48000 with increased volume and confirmation from indicators.
Stop-Loss: Above the recent swing high within the range.
Target: Risk-Reward ratio of 1:2
Considerations:
Volume: Increased volume on the breakout can strengthen the move.
Indicators: Consider using indicators like RSI, MACD, or Bollinger Bands to identify potential divergences or confirmations.
News & Events: Be aware of upcoming budget events that could impact market sentiment.
Disclaimer: This is for informational purposes only and not financial advice. Trading involves risk, and you should always conduct your own research and consult with a qualified financial advisor before making any investment decisions.
BANKNIFTY has been consolidating within a defined range for the past 4 trading sessions in one hour candle chart
- Support level: 48000
- Resistance level: 49660
Price action has been characterized by lack of strong directional bias
Trading Idea
Breakout Strategy:
Long Entry: A decisive break above the resistance level 49660 with increased volume and confirmation from indicators.
Stop-Loss: Below the recent swing low within the range.
Target: Risk-Reward ratio of 1:2
Short Entry: A decisive break below the support level 48000 with increased volume and confirmation from indicators.
Stop-Loss: Above the recent swing high within the range.
Target: Risk-Reward ratio of 1:2
Considerations:
Volume: Increased volume on the breakout can strengthen the move.
Indicators: Consider using indicators like RSI, MACD, or Bollinger Bands to identify potential divergences or confirmations.
News & Events: Be aware of upcoming budget events that could impact market sentiment.
Disclaimer: This is for informational purposes only and not financial advice. Trading involves risk, and you should always conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.