We can See in NIFTY Hidden diversion has formed between 31 March to 13 April when this kind of scenario happens we have observed most of the time the next day of the market performs like wise :-
1. market opens at the same levels of the last close or some points up from the last close and do not break the previous Low and stay above the hidden diversion support line all day and takes support near or at the same line without breaking the previous low.
2. Market opens At or above the previous close and break the previous low and reverse sharply in the first session but by the time of closing it closes above the support line
3.if Market opens gap down or below the low of the previous sessions than the hidden diversion line will react as a resistance line and RSI and Price will be in synchronise manner means RSI and price both will be down
NOW lets Dig Deep In the Chart :-
As mention on the the chart referring (P1) here is also hidden diversion took place in the past Dt. between 21st to 25th March can react as a support line if market slips further more in coming sessions and there is a previous gap Zone area which still needs to be fill by the market
as a reference of Dt. 28th and 29th which is making a Axis point by intersecting the support line.
As we can see hidden diversion is already happening if price fall on that support line on that time price's lower point will be higher than the previous hidden diversion as mentioned on (P1).
because closing price will be higher and Current RSI would have been drop more than the previous RSI lower point when that hidden diversion took place
than the same condition will happen which we have mentioned in the "HIDDEN DIVERSION SCENARIO"
(P2) How the next Bearish diversion will happen if market goes up from here and reach to the upside Gap Zone (17921.55 to 17901.00) which mentioned on the chart or break the recent high of Dt. 4th April 18114.65 on that date RSI Value is 68.33 if current RSI Value is less than that but price is higher. then market will again fall because its going to eat the stop loses of the sellers.
REMEMBER IF PRICE AND RSI BOTH ARE IN SYNCHRONISE MANNER THAN MARKET CAN GO FURTHER UPSIDE THAN WE WILL HAVE TO CHECK AGAIN FROM NOW FROM WHICH POINT IT IS NOT IN RYTHEM IN THIS SITUATION IF ANYONE IN SELLING POSITION SHOULD WIND UP HIS SELLING POSITION OTHERWISE CAN FACE A HEAVY LOSS BECAUSE MARKET SET THE TARGET FOR THE NEXT PEAK HIGH OR GO TO PREVIOUS HIGH THAN THE RECENT ONE.
(P3) Same thing we will Observe on the (P3) point we will have to check will it there be a Bullish Hidden Diversion forming OR Price and RSI Both in RYTHEM
NOTE :- This is Not a Buying and Selling Recommendation this is purely for Educational purpose to understand how diversion takes place in the market....keep up learning
1. market opens at the same levels of the last close or some points up from the last close and do not break the previous Low and stay above the hidden diversion support line all day and takes support near or at the same line without breaking the previous low.
2. Market opens At or above the previous close and break the previous low and reverse sharply in the first session but by the time of closing it closes above the support line
3.if Market opens gap down or below the low of the previous sessions than the hidden diversion line will react as a resistance line and RSI and Price will be in synchronise manner means RSI and price both will be down
NOW lets Dig Deep In the Chart :-
As mention on the the chart referring (P1) here is also hidden diversion took place in the past Dt. between 21st to 25th March can react as a support line if market slips further more in coming sessions and there is a previous gap Zone area which still needs to be fill by the market
as a reference of Dt. 28th and 29th which is making a Axis point by intersecting the support line.
As we can see hidden diversion is already happening if price fall on that support line on that time price's lower point will be higher than the previous hidden diversion as mentioned on (P1).
because closing price will be higher and Current RSI would have been drop more than the previous RSI lower point when that hidden diversion took place
than the same condition will happen which we have mentioned in the "HIDDEN DIVERSION SCENARIO"
(P2) How the next Bearish diversion will happen if market goes up from here and reach to the upside Gap Zone (17921.55 to 17901.00) which mentioned on the chart or break the recent high of Dt. 4th April 18114.65 on that date RSI Value is 68.33 if current RSI Value is less than that but price is higher. then market will again fall because its going to eat the stop loses of the sellers.
REMEMBER IF PRICE AND RSI BOTH ARE IN SYNCHRONISE MANNER THAN MARKET CAN GO FURTHER UPSIDE THAN WE WILL HAVE TO CHECK AGAIN FROM NOW FROM WHICH POINT IT IS NOT IN RYTHEM IN THIS SITUATION IF ANYONE IN SELLING POSITION SHOULD WIND UP HIS SELLING POSITION OTHERWISE CAN FACE A HEAVY LOSS BECAUSE MARKET SET THE TARGET FOR THE NEXT PEAK HIGH OR GO TO PREVIOUS HIGH THAN THE RECENT ONE.
(P3) Same thing we will Observe on the (P3) point we will have to check will it there be a Bullish Hidden Diversion forming OR Price and RSI Both in RYTHEM
NOTE :- This is Not a Buying and Selling Recommendation this is purely for Educational purpose to understand how diversion takes place in the market....keep up learning