Markets moves towards Liquidity- NIFTY 50 at Liquidity zone
Chart Insights: In 4H Timeframe, Nifty was seen consolidating (10th-12 Sep) and gave a impulsive move on the upside breaking the previous higher high. The consolidation before the impulsive move is termed as Order block and that range (Yellow box) is again a great buying opportunity for bigger institutions.
Fibonacci and Price Action: Correcting upto and more than 50% is considered as discount zone. Best Buying price in Fibonacci retracement is 61.8%. The Pullback from the previous Higher High (25300 level) was upto 61.8% at 24750 level and note it became a Lower High.
Order Block & Liquidity: The consolidation zone before the impulsive move is termed as Order block and below the impulsive candle is area of Liquidity. Market usually corrects upto the imbalance created by the Impulsive move and if there is order block zone present, the buyers are more likely to step in. Hence the Range (Yellow box) is again a great buying opportunity for bigger institutions.
Validation: From the ATH, it has corrected upto 78.6% (heavily discounted) and is inside the range/ previous order block zone.
Watchout: In the Order Block range, if the price action shows bullish pattern in shorter time frame, we can expect steady buying . But if the range is broken in downside, and Nifty closes below 24750 level then it implies the Lower High is also broken, possible conversion into Bearish Character.
Fibonacci and Price Action: Correcting upto and more than 50% is considered as discount zone. Best Buying price in Fibonacci retracement is 61.8%. The Pullback from the previous Higher High (25300 level) was upto 61.8% at 24750 level and note it became a Lower High.
Order Block & Liquidity: The consolidation zone before the impulsive move is termed as Order block and below the impulsive candle is area of Liquidity. Market usually corrects upto the imbalance created by the Impulsive move and if there is order block zone present, the buyers are more likely to step in. Hence the Range (Yellow box) is again a great buying opportunity for bigger institutions.
Validation: From the ATH, it has corrected upto 78.6% (heavily discounted) and is inside the range/ previous order block zone.
Watchout: In the Order Block range, if the price action shows bullish pattern in shorter time frame, we can expect steady buying . But if the range is broken in downside, and Nifty closes below 24750 level then it implies the Lower High is also broken, possible conversion into Bearish Character.
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