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Fallingthreemethods

Falling Three Method - NiftyIn this pattern bulls begin to take control but cannot entirely overwhelm the bears. First, it causes a pause in the price’s downward progression, as indicated by the three short green candles. Then bulls, however, go out of fuel and are overtaken by the bears. The long red candle at the end of the pattern completes the pattern by closing below the level of the first long candle. How to trade it? Wait for the candle to get close & Short at the low of the five candles. Considering, Overall Price Structure, this pattern is at an important juncture. There is strong support at the 17500-17600 range considering the price pattern and Open interest data. Once it goes below that it will rise the calls at 17500 & 17600 levels Then the next support will be at the 16800 to 17000 range.
NSE:NIFTY1!
by OK_Rane
2
Banknifty The Falling 3 Method Will the Down Trend Continue?What Is the Falling Three Methods Pattern? The "falling three methods" is a bearish, five candle continuation pattern that signals an interruption, but not a reversal, of a current downtrend. The pattern is characterized by two long candlesticks in the direction of the trend—in this case, down—at the beginning and end, with three shorter counter-trend candlesticks in the middle. KEY TAKEAWAYS The "falling three methods" is a bearish, five-candle continuation pattern that signals an interruption, but not a reversal, of the current downtrend. A falling three methods pattern is characterized by two long candlesticks in the direction of the trend, one at the beginning and end, with three shorter counter-trend candlesticks in the middle. The falling three methods pattern shows traders that the bulls still don't have sufficient conviction to reverse the trend. It can be used by active traders as a signal to initiate short positions.
NSE:BANKNIFTYShort
by kiranrshinde