Everything is explained on chart .. the start of the possible harmonic happens at the end of the C leg to find that you need to identify and keep an eye on the B leg
Train your eyes to identify the Structure. Latter comes the logic and understanding.
The underlying chart gives us the data but it is important to look into the options chart for the trade.
We normally wait for the breakouts to happen in the underlying chart but they happen way ahead in the options chart. By the time we take a trade in the options, it would have been late in options pricing.
Below is the bank nifty options chart
You can see...
It seems Bank nifty is in Uptrend I have done a study on harmonic patterns.
As of now it is at the mid of CD leg so following things may happen...
1) If it sustain above 29412 then it may give a TGT 29550 , TGT 29825 , TGT 30170 , Final TGT 30625
2) Now if it start reversal from this level i.e. 29790 and breaks 28550 then we will get a TGT 27990
3) If It start...
It has reversed from a Bearish Harmonic Alt Shark which could see a retracement till 318/310/300. The view would negate above 332.
Harmonic Trading Patterns are derived from Fibonacci ratios which create various patterns indicating reversal/retracement of trend in the time frame spotted.
It might be forming a THREE VALLEYS & A RIVER in hourly time frame. It has two bearish Harmonic Trading Patterns at 11875 (Deep Crab) and at 11975 (Alt Shark). "If" a REVERSAL were to occur from that zone then the downside expected levels could be 11750 / 11550 / 11400. The negation point would be at 12020
DJIA which turned from a Bullish Harmonic AB=CD is now approaching the PRZ (28600-28800) of a Bearish Harmonic AB=CD. Like in the bullish instance which coincided with Ichimoku support, here too the expected resistance tallies with an Ichimoku weekly resistance and a falling trend line. View would negate above 28900
It has reversed from a Bearish Harmonic Deep Crab which also coincides with a Weekly Ichimoku resistance. It could retest 540/515 if it fails to sustain above 580
It has activated a C Clamp which suggest a retracement till 1860 is probable, which is also a resistance in weekly/monthly time frame. The level also tallies with a retracement of the monthly bullish harmonic pattern as well as with a probable bearish pattern near it in lower time frame. Two studies suggesting indentical resistance ahead!
It has made a Bullish Harmonic Alt Shark in Weekly time frame. Sustaining above 16700 on closing basis could lead to the probability of a reversal/bounce till 19500/21500. View would negate below 15700
It is showing signs of reversal from its PRZ zone of 2 bullish harmonic patterns - Deep Crab and AB=CD. It could retest 260-265 provided it does not go below 243
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