We can analyse Nifty price action in the light of Trader Vic's 2B Pattern. Trader Vic describes this excellent technique as follows”: “When the upward price trend, if the price on the market touched the previous price peak, but could not cross it the first time, and immediately fell below the previous price peak, this suggests that the trend has been on the market about to make a turn“. The opposite is generally true for the downward price trend which I have marked as example 1.
Potential trade based upon the setup is marked for the traders for trading or the learning.
Disclaimer : All ideas are my personnel view. Please take financial consultancy for trading decision.
just crossing or closing and trading above is the crieterion? am asking it coz it did cross the prev peak but fell
praveen.bhatiya
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@Parasuram, Your question is not clear to me. Is it from the example 1 or from the potential Trade?
shaktis
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@Parasuram, i got ur question ,yes it crosses the previous peak in first attempt .. so is this failure of this rule i think.
praveen.bhatiya
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@shaktis, @Parasuram, When market is in an upward price trend and creates a new maximum, after which there is a rollback on the market. After rolling back on the market, the price is trying to break this new highs and closed above it. This bar is called “break-out bar but price could nut sustain and falls. The trade is below the low of this "Break-out Bar". I hope it explains.
shaktis
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@Praveen.bhatiya, in case of trend continuation how much wait/bar is necessary for trend confirmation or need to see high Open interest.
praveen.bhatiya
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@shaktis, Only 2-3 bars. I don't mix 2 many things as it creates confusion to me but if you could interperet the information and it helps, why not.