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rohitkaran
Nov 11, 2020 6:06 AM

Time to exercise some caution 

Nifty 50 IndexNSE

Description

NIFTY has formed a bearish AB=CD at the trendline resistance. Time to be a little cautious.


Comments
Jagadeesh_Gvs
AB=CD means?

Please explain in 2 lines as I am a starter.

Thanks.
rohitkaran
@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.
Jagadeesh_Gvs
@rohitkaran, Thanks Rohit for your explanation!
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