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Morning Star

TOP/BOTTOM REVERSAL CANDLE PATTERNSHi Its been a while since my last post. In this post I have represented selective candlestick reversal patterns. In a candlestick, "body" represents the distance between candle OPEN and CLOSING price. Whereas "wicks" represent the entire range of the candle from TOP to the BOTTOM. In most of these patterns only bodies are important. There are no conditions for wicks unless specifically mentioned like in abandoned baby star and (first two candles of) shooting star pattern. In an abandoned baby star pattern the wicks of the second day should not overlap with the wicks of first and third day. But there can be wick overlapping in morning and evening stars where the condition is for bodies only. Similarly in shooting star, the second day should not overlap with the first day (not even wicks) whereas the third day may have some overlapping. One should always try these patterns with some sort of confirmation in the form of volume or overbought/oversold scenarios etc. While taking a trade based on these patterns one should follow money management and trade management principles. I hope this post will update your knowledge in one way or the other. Do not forget to like and comment (for any doubts) to encourage writing on trading view. Regards JJSingh
NSE:NIFTYEducation
by Bravetotrade
41
WHY NIFTY GOING UP? AGAIN A GAP DOWN ON MON (15 Oct)POSSIBLE?THIS IS THE THIRD PART OF THE ANALYSIS ON NIFTY 2.32% FALL. IF YOU NOT READ THE PREVIOUS ONE 2 POSTS, PLEASE READ THE SAME FOR BETTER UNDERSTANDING. I HAVE ALSO SHARED ITS LINK BELOW. Last time we estimated a big downfall in the month of October and believed that IT Sector might stay in pressure as the results of Tata Elxsi disappointed and Number of TCS may also disappoint. Although, There was no downfall today. the top companies of IT Sector behaved in the manner as expected. TCS, Mindtree, NIIT and HCL Tech ended on the negative note and other companies fell initially but recovered and ended with minor gains. However one major thing to see is all the major global markets including Nikkei, Dow Jones, other Index were in Dark Red and even SGX NIfty was in -200 (although I do not believe SGX Nifty is directly related to Nifty but being part of the global market, even it depicts the sentiment of the market). Our Nifty did not showed any Red Colour. FII Data suggest that they have net purchased 7.9K Index Futures and 10.2K stock Futures. Important Event. 1. Consumer inflation stood at 3.77 per cent as against 3.69 per cent in the previous month. This rise in inflation was driven by higher prices of food and fuel along with weakness in the rupee. The retail inflation figure was lower than economists' estimates of 4% and was within the comfort zone of RBI. (Good for Market). 2. Good result of Nifty 50 Company - HUL. 3. Lined up result of Nifty 50 Company in coming week- Infy, Reliance, HeroMotoCorp, HDFC Bank Candles Formation The last 3 day candles have created a Bullish reversal pattern in the form of Morning Star. Interpretation With a rise of Today, FII has also added Longs in Shares and Indexes. We can expect a small pullback rally over here. HUL has result has been great, which will have a positive impact on the market after poor numbers from TCS. In The coming week result of top Nifty 50 companies are there, which will shape the market. In the process to up,There has been 2 Gaps created in the past downfall and crossed 2 Fibo support (Mentioned Below) which will stop the market from going up. Resistance 1 - Gap 1 - 10520-10550 Resistance 2 - Fibo Resistance 38.2 - 10650 Resistance 3 - Gap 2 - 10750-10850 Resistance 4 - Fibo Resistance 0.5 - 10860 The Above 4 levels are going to act as major resistance. Even after being optimistic, I do not feel market will be able to cross Resistance 3. Please note Pullback are short term and short lived. Thus, I personally do not prefer trading the pullbacks. However these pullbacks gives good level to again short the market. Please also note : FII even after covering have 89K Shorts. The fall can be deffer-ed but is certain to come until FII decide to cut their shorts in losses. (which never happen :P) The last time Nifty/Bank Nifty rose 300/800 points, it witnessed a bigger Gap Down the next day. I do not expect the same on Monday. Market might open Flat. These are just my thoughts, and my view to the things going around. I hope it Helps. All counter views welcomed if they intend a fruitful discussion. And If Warren Buffet says he still learns, who are we to say or believe that we know all. Lets learn together and Earn together. Thanks.
NSE:NIFTYEducation
by prathamaggarwal
10