Studing Consolidation Phase

NSE:NIFTY   Nifty 50 Index
This is hourly timeframe.
This is how I analyze the consolidation only technically.

From fibo. recent top to bottom, Nifty is taking resistance 0.38 fibonacci level.

Let's pointout the short trend and understand each.
1] Nifty started consolidating 6th May 2022.
It started falling, gone sideways for sometime and gave bounce back.

2] And it tested the 16400 zone. As it was a straight one side move, it was obvious it will give a retracement.

3] But it was again a one side move, this time downward, and tested the recent bottom.
Here, we witnessed a sharp upmove from bottom to top and again to bottom.

4] Again from 20th May, a sharp upmove towards resistance.

5] Tested and fallback this week.

6] Bounce backed again and now near resistance zone.

In all of these short term trends, we can see thick bullish and bearish candles in phase 1 and 5.
Though bulls failed in these phase.

Almost each phase has 1) bullish and bearish belt hold
2) bullish and bearish marubozu
Except phase 2,6 no bearish candlestick of this type.

These opposite candlestick patterns occurance multiple times tells us that market is now choppy, highly volatile.

Outcome of analysis:
In current market situation, bulls and bear are almost equally powerful.
Choopy moves indicates the aggression and dominating will.

This how I analyze a consolidation.
Breaks it down in trend zones and study each, and keep in back of the mind each one's outcome,
and try to anticipate, every possibility. And how much is the chance of taking it place by looking at
bull and bears behaviour.

Note : This is my own analysis and is for information purpose only.


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