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TreasureTraderZ
Sep 28, 2022 9:30 AM

Nifty 50 - Educational Analysis on why the 7% drop - Confluence 

NSE:NIFTY1D
Nifty 50 IndexNSE

Description

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This is an education post of understanding some possible reasons when a correction happens
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Few Reasons for Nifty's Bearish Outlook (Short term)

1. Negative RSI Divergence - Price goes up and RSI goes down
2. Break of Rising Wedge Pattern
3. Break of previous swing low (17160)
4. Previous peak rejection making the 18100 as a double top
5. MACD divergence and crossover
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Daily


Hourly


On hourly Time frame

6. Broke a major trendline
7. With a Head and shoulders
8. A rounding top

So multiple factors and views indicating - A confluence View
Trend AnalysisChart PatternsTechnical IndicatorsNIFTYnifty50DivergencewedgebreakoutmacdivergencemacdcrossoverTrend Line Break
Comments
johntradingwick
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This publication has been chosen for the Editor's Picks and will be featured on in.tradingview.com/ideas/editors-picks/.

Thank you for your valuable contribution to the Tradingview community and keep up the good work!
TreasureTraderZ
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@johntradingwick, Thank you very much for reviewing and choosing it as Editor's Pick!
Chaser30
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true but late, double top with rsi divergence was visible quite early
and after breakdown at 17350 nifty has corrected a lot.
TreasureTraderZ
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@Chaser30, It was visible, but in my view confirmation came only at Break of previous swing low (17160)
arvind535248
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@PradeepSivam
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