rohitkaran

Time to exercise some caution

NSE:NIFTY   Nifty 50 Index
NIFTY has formed a bearish AB=CD at the trendline resistance. Time to be a little cautious.


Comments

AB=CD means?

Please explain in 2 lines as I am a starter.

Thanks.
Reply
rohitkaran Jagadeesh_Gvs
@Jagadeesh_Gvs, Sure. This is a harmonic pattern. In this case there are 3 moves A to B, B to C, and C to D. The length of AB is same as CD and time taken is almost similar. this can indicate some kind of reversal. you can get the probable target by taking fibonacci retracement of CD. The stop loss in such a case would be slightly above point D.

As with all patterns, this is a probabilistic pattern and there are chances it may fail. so please manage risks accordingly.

hope this helps.
Reply
Jagadeesh_Gvs rohitkaran
@rohitkaran, Thanks Rohit for your explanation!
Reply
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