Price action displayed by nifty today can be considered as positive consolidation. Positive consolidation is where after consolidation price will give a breakout, not breakdown.
Why do i say it is Positive consolidation?
Price action interpretation says that if after breakout, price consolidates within the length of resistance candle, more importantly in upper wick of the candle if its an inverted hammer, then it means that price is not giving up the seller's territory. If price is not giving up seller's territory, then it signifies buyer's strength, thus potentially the trend will be won by buyers,
This is my interpretation. I am though new to the study of this price action. Tomorrow we will see if it works.
Why do i say it is Positive consolidation?
Price action interpretation says that if after breakout, price consolidates within the length of resistance candle, more importantly in upper wick of the candle if its an inverted hammer, then it means that price is not giving up the seller's territory. If price is not giving up seller's territory, then it signifies buyer's strength, thus potentially the trend will be won by buyers,
This is my interpretation. I am though new to the study of this price action. Tomorrow we will see if it works.
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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.