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BANKNIFTY DOWN TREND ANALYSISSince Friday, the market has been trending downwards. Today, we seemed to have taken a pause and made an inside candle on the daily chart . Some key points from today's trade were, Bank Nifty closed below the key support of 35,000. There was large PUT open interest @ 35,000 which seemed to reduce drastically towards the end of the day. The market retraced upwards but was unable to re-test the 50% retracement level @ 35,550, keeping the downtrend intact. Considering that the market breaks the swing low @ 34,450 and moves lower, there is a very high probability that we could move considerably lower towards 32,800. This is presenting an excellent risk reward situation to take trades on the short side. If the market opens with a gap up, the down move may not come tomorrow as there will strong support @ 35,000 which maybe difficult to break. Hence, the best case situation for short trades will be that the market either opens flat and continues moving lower, or it gaps down below 34,400 and moves lower without a near by support in sight. These are my personal views and I reserve the right to be wrong. Like and follow, if you found this helpful. :)
NSE:BANKNIFTYShort
by ArcherDAVIS
Inverted Hammer in Monthly Chart** The shooting star candlesticks pattern, also known as the Pinbar (or bearish pinbar/inverted Hammer) by some, is one of the most popular candlestick patterns among price action traders. It was the first candlestick signal that I relied on, and one that I still use today, although I trade it much differently than most other price action traders. # What is a Shooting Star Candlestick Pattern? *The shooting star consists of a long upper wick (shadow) that is, at least, twice the size of the real body. It should have a relatively small lower wick or none at all. Its real body can be bearish or bullish (see in the chart) and is usually relatively small in comparison to previous candlesticks. *The shooting star candlestick pattern, like all the other candlestick entry signals, must be traded within the context of the market. In other words, a true shooting star candlestick signal can only come after an uptrend in price (see the chart). Note: Never trade a candlestick formation that looks like a shooting star from consolidating price action or a tight ranging market. A shooting star candlestick pattern is a strong reversal signal, and unlike most other price action signals, this one does not need another candle for confirmation, according to the standard trading technique. However, the proprietary filters that I personally use to qualify a good shooting star are quite different, so let’s go over those now. #What Makes a Good Shooting Star (Pinbar/Inverted Hammer) Pattern? ** Some of the filters that I use to qualify a good shooting star make taking the entry completely different than the standard method. In my experience, these filters have drastically improved my strike rate with the shooting star candlestick pattern. # Confirmation Close The first filter that I want to talk about is the confirmation close. This is probably the most important filter that I use on the shooting star, and it’s also the filter that changes the way you must take your entry with this pattern. Basically, as a sign that the uptrend is actually ending, after the shooting star signal, you want to see a bearish candlestick that closes below the real body of the previous candlestick and You can add in your strategy for more accuracy. ** Historically in Nifty 50 when in monthly chart Pinbar/shooting star/inverted hammer appears at top that sign of bearish trend .(see in the chart) Kindly Let me know if you have any questions. Thank You
NSE:NIFTYEducation
by PrasantaP
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