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Harmonic Patterns

NIFTY: Week Ahead, Spot & FUT Levels Weekly(30/07/18) BasisBearish Alt AB = CD (1.13 Ext.) Can Short at "TFZ / HZ #1 => 11342.7 - 11361.5" (Spot) / 11363 - 11377 (Fut) Can Short at "TFZ / HZ #1 => 11342.7 - 11361.5" (Spot) ...levels plotted 7 mentioned in Chart. Some important Data: PCR: 1.38 (Over Bought 1.4 - 1.7) RSI(14): 73.99, RSI(9): 66.75 BB: Closed Above BB IndiaVIX: 12.31 (Prev. - 12.03) +2.39% Interpretation: When increases NIFTY Falls Though in Last Trading Reversed.
NSE:NIFTYEducation
by DSKF16
NIFTY: Contra ViewNext Level to watch 11346 - 11360 (as major Selling Pressure) Advantage Bulls: PCR: 1.38 can Go 1.7 - 1.8 RSI(9): 66.75, Short Term Momentum Lift to 75+ IndiaVIX: 12.31, Yly LOW: 9.2575, One year Ago: 11.17 Monthly Historical DATA. (NEXT "UP") Advantage Bears: PCR: 1.38 Reversed to 1.05 - 0.85 RSI(14): 73.99, (Over Bought) IndiaVIX: 12.31 (Prev. - 12.03) +2.39% Monthly Historical DATA, Major EVEN Years formed "DOJI" .....detailed mentioned in Chart. Education Purpose Only.
NSE:NIFTYEducation
by DSKF16
3
Nifty!! Take Some Rest, Sync In HarmonyHi all, So finally we broke out of ranges. But the problem is that we are not consolidating, which recalls me of a saying "the quick you gain, the quicker you lose". Yes, we are in strong momentum and everybody is in breakout euphoria. But there has to be a point of saturation, which I suppose is near 11033. I don't say that it will be the end of this rally but may be a brief pause or pullback as we have left a few gaps to be filled. We might also retest the breakout level, which is 10800. Once again I say that I could be totally wrong this time as we may end up pushing higher in a mad euphoric bull market (which would be extremely dangerous). What I am notifying here is a caution at that level, b'coz you know at some point of time the traders like me think of booking profit. Trade safe, stay healthy. Make informed decisions. Regards JJ
NSE:NIFTYEducation
by Bravetotrade
4
Nifty: July Could Be DecisiveI believe that this month could decide a clear direction for us. This week it had a breakdown below 10700 support level and an important trendline (of course signs of bearishness). But the Friday's pullback was as strong as the breakdown. To my surprise there was no sustained reaction from 10700 and it managed to close above support. What Next? Scenario 1 : We may be retesting the breakdown area. In that case, we should see some signs of reversal in the 10700-10765 zone. If we resume the downtrend from there we will be heading towards 10520 and 10430 next week. Scenario 2: Breakdown that we had last week fails. The short covering above 10850-10900 zone will give enough energy to break the long term resistance trendline on sustained basis. Sustaining above 10765 would be the first sign for bears to get cautious. So let's see what happens. All the best for next week. Regards
NSE:NIFTYEducation
by Bravetotrade
5
Nifty: Was It Just Short Covering ?Hi, Thanks for your response to my previous post which actually made profit for some traders. Expecting similar response for this post too. So the rally did come, as per expectations, which took the index from 10701 to 10809 in just two trading sessions. However, it came back to the same level of 10711 and faced a hard push to 10837. Was it just short covering which started above 10770 and boosted by the breach of 10810 ? Well! it was one of the factors but the question is how short sellers were compelled to cover their shorts ? And the answer is, It was the buyers at the support 10700-10710 who had a strong belief that this level has held the market twice and it will hold it this time too. At that time I was talking to a colleague sitting next to me that the market could reverse. As I looked on smaller TF, market was breaking out of a falling wedge, the first sign of reversal for me. I was quite optimistic for 10750 at that time but market comfortably sustained above that level. Next halt was at 10830 and it just achieved that. Present Scenario : Last week was a whipsaw. Can we expect a trend this week? I personally do not think so. Presently we are resting at an important downtrend line resistance. Case 1: If we continue to move above 10830 level, we have a second bearish bat pattern sitting at the corner. Coincidentally, the PRZ of both the patterns fall at 10870 (for further clarity see previous post above). Therefore, the level 10870-10900 may again act as strong resistance for the market. Which means, we may see reaction from this zone. It would depend upon the type of the reaction that the further course of action can be anticipated. The more time we stay above the downtrend line, the more would be the chances to breach the PRZ resistance. In such a case, it may soon hit 10930 or may retest previous all time highs. If bearish move is to continue, it has to come back fast into the bearish zone (under the TL). In such a case, after hitting 10870 (or before), a sharp reaction has to push the market towards 10810 and 10766. Where would I go bearish? I might trade opening small short positions near the PRZ. But I will go fully bearish below 10700. Until then I ll enjoy the spikes in some stocks like BajFin, Kotakbank and Lupin etc. Case 2: We do not resume the current up move above the TL (10830) and reverse from there. In this case too I will go bearish below 10700 only. Below 10700 I would hunt for 10600 (Bat target 2). I hope that this analysis will help some traders, who follow technical analysis, to take better decisions. Trade safe, stay healthy. Regards
NSE:NIFTYEducation
by Bravetotrade
17
Nifty: Cypher-Bat-Bearish AttackHi In my previous post on the index, I presented a bearish cypher and three levels on the chart. The first and second levels got hit while the third one has not. It made a low at 10417 right at the 50% retracement level mentioned on the above post. Since then it has been reversing. What do I expect now? What I see on the chart is the formation of another bearish bat pattern right into the downtrend line shown on the chart, which may give me a high risk reward opportunity to short. The bat PRZ (10870) coincides with an ABCD pattern shown in the chart, which has the D point completion at 10855. So I must consider 10855-10870 as a potential reversal zone. #This analysis will remain valid untill we close above 10930. But before that, where the index might take support (in the current micro downtrend) to shoot back up for the PRZ? I have come out a support zone of 10650-10680 which may act as a cushion for the markets. # 10558 should not be violated or else I will have to reassess the scenarios. OK..assume it hit the support, bounce to hit PRZ and reverse..then what would be the targets on the downside. Well !! that's tricky. As of now I can only say that it could either go for traditional bat targets at 38.2% and 61.8% retracement levels ( which I can update later) OR it may go for 61.8% Cypher target at 10325. I hope this analysis would help some traders to make better decisions. Wish you a happy weekend and profitable week ahead. Regards
NSE:NIFTYEducation
by Bravetotrade
14
Nifty: Cypher-BearishHi, Publishing a bit late in this downmove, but we 'll discuss few opportunities on the downside. First of all Nifty managed to close above 10785, did not hit the 11000 target but 10929 instead before the giant Cypher nibbled the bullish move. We might have some downside left in this move but perhaps this is not the place to short. Traditionally the first target for this pattern would be 10555 and the second 10325. But let's see how we may reach there. If markets pull back from here, I would look for selling opportunity in the 10690-10790 zone and hunt for the targets. But If market hits 10555 first, I ll look for selling opportunity in the 10620-10700 zone (one can also utilize 10555 level to scalp a long trade setup), and look for targets. As per books 11172 should be the stoploss but practically that's too high, so the current pivot 10930 can be taken as stoploss point which can be trailed if the trade proceeds in our direction. Hope this analysis would help some traders to take better decisions. Regards
NSE:NIFTYEducation
by Bravetotrade
4
1.4 The Bat PatternThe Bat Pattern Market Strategy The Bat Pattern Market Strategy has been tested across different asset classes (currencies, commodities, stocks and cryptocurrencies). We recommend that you take the time and backtest the harmonic bat patterns strategy before attempting to use this advanced pattern in your trading strategy. How to Trade the Bat Pattern The bat pattern market strategy like any other harmonic pattern is a four-leg reversal pattern that follows specific Fibonacci ratios. A proper Bat pattern needs to fulfill the following three Fibonacci rules: AB= minimum 38.2% and maximum 50% Fibonacci retracement of XA leg; BC= minimum 38.2% and maximum 88.6% Fibonacci retracement of AB leg; CD= 88.6% Fibonacci retracement of XA leg or between 1.618% – 2.618 Fibonacci extension of AB leg Step #1: How to Draw the Bat Pattern I would walk you through this process step by step. All you need to do is to follow this simple guide and see figure above for a better understanding of the process: First, click on the harmonic pattern indicator which can be located on the right-hand side toolbar of the TradingView platform. Identify on the chart the starting point X, which can be any swing high or low point on the chart. Once you’ve located your first swing high/low point you simply have to follow the market swing wave movements. You need to have 4 points or 4 swings high/low points that bind together and form the harmonic bat pattern strategy. Every swing leg must be validated and abide by the Bat pattern Forex Fibonacci ratios presented above. Step #2: How to Trade the Bat Pattern: But at the completion of wave D which should satisfy the CD= 88.6% Fibonacci retracement of XA leg The 88.6% Fibonacci ratio gives you a better risk: reward ratio which is the reason why the bat pattern market strategy is such a popular trading strategy. The ultimate entry point is the 88.6% Fibonacci retracement which is a very precise market turning point. We recommend entering as soon as we touch the 88.6% figure because often times and based on our backtesting results we have found out that the harmonic bat pattern strategy doesn’t go much beyond this level. Step #3: Place the Protective Stop Loss below Wave X Normally you want to place your protective stop loss below the point X of a harmonic bat pattern. That’s the logical place to hide your stop loss because any break below will automatically invalidate the Bat pattern. Step #4: How to Trade the Bat Pattern – Take TP1 at Wave C and TP2 at Wave A There can be many ways to manage your trades, but the optimal target for this pattern should be to implement a multiple take profit strategy. For the Harmonic Bat pattern strategy, we’re going to take the first partial profit once we hit wave-C level and the remaining half once we break above wave-A
NSE:NIFTYEducation
by Fibonacci_Club
1.3 Crab Chart PatternThe harmonic Crab is an extreme harmonic pattern which means price action will typically be volatile and be extreme as it enters the Potential Reversal Zone (PRZ). Step #1 How to Draw Crab Chart Pattern To learn how to draw the Crab pattern simply follow step by step guide – see figure in chart for a better understanding of the process: First, click on the harmonic pattern indicator which can be located on the right-hand side toolbar of the TradingView platform. Identify on the chart the starting point X, which can be any swing high or low point on the chart. Once you’ve located your first swing high/low point you simply have to follow the market swing wave movements. You need to have 4 points or 4 swings high/low points that bind together and form the harmonic crab pattern strategy. Every swing leg must be validated and abide by the Crab pattern forex Fibonacci ratios presented above. Step #2: How to Trade Crab Chart Pattern: SELL at Point D which should satisfy the requirement CD = 2.24 – 3.618 of AB leg. Step #3: Place the Protective Stop Loss above the 3.618 Fibonacci extensions. Step #4: Bearish Crab Pattern Target: Multiple Take Profit Strategy: TP1 = 0.618 CD Fibonacci retracement; TP2 = below A
NSE:NIFTYEducation
by Fibonacci_Club
1.2 Butterfly HarmonicHow to Trade Butterfly Harmonic he butterfly market strategy like any other harmonic pattern is a four-leg reversal pattern that follows specific Fibonacci ratios. A proper harmonic Butterfly needs to fulfill the following three Fibonacci rules: AB= an ideal target of 0.786 or 78.6% of XA leg; BC= minimum 38.2% and maximum 88.6% Fibonacci retracement of AB leg; CD= Poses a target between 1.618% – 2.618 Fibonacci extension of AB leg between 1.272– 1.618 of XA leg. The B point of the Butterfly harmonic pattern is important because it’s determining other Fibonacci measurements within the pattern to define the trade opportunities. So, the ideal target for the B point must possess precise 78.6% retracement of the XA swing. Other rules that redefine the structure further include the BC projection that must be at least 1.618 measurements. And, finally, the C point must be within the range of 0.382-0.886 retracement. Step #1 How to Draw Butterfly Pattern To learn how to draw butterfly chart pattern simply follow step by step guide – see figure in chart for a better understanding of the process: First, click on the harmonic pattern indicator which can be located on the right-hand side toolbar of the TradingView platform. Identify on the chart the starting point X, which can be any swing high or low point on the chart. Once you’ve located your first swing high/low point you simply have to follow the market swing wave movements. You need to have 4 points or 4 swings high/low points that bind together and form the harmonic bat pattern strategy. Every swing leg must be validated and abide by the bat pattern forex Fibonacci ratios presented above. Step #2: SELL at Point D which should satisfy the requirement CD = 1.618 – 2.1618 of AB leg. Step #3: Place the Protective Stop Loss at 1.618 of XA Step #4: Multiple take profit strategy: TP1 = Point A; TP2 = Trailing SL below last swing high.
NSE:NIFTYEducation
by Fibonacci_Club
1
Chapter 1 - Harmonic trading pattern We can distinguish six basic harmonic patterns: 1.1 Gartley 1.2 Butterfly 1.3 Crab 1.4 Bat 1.5 Shark 1.6 Cypher How to Trade the Gartley Chart Pattern The Gartley market strategy like any other harmonic pattern is a four-leg reversal pattern that follows specific Fibonacci ratios. A proper Gartley chart pattern needs to fulfill the following three Fibonacci rules: AB= retrace to 0.618 Fibonacci Retracement of XA leg; BC= minimum 38.2% and maximum 78.6% Fibonacci retracement of AB leg; CD= Poses a target between 1.27 – 1.618 Fibonacci extension of AB leg or an ideal target of 0.786 of XA leg. The Gartley harmonic shares some similarities with the Butterfly Harmonic Pattern. Step #1 How to Draw Gartley Pattern To learn how to draw gartley pattern simply follow step by step guide – see figure below for a better understanding of the process: First, click on the harmonic pattern indicator which can be located on the right-hand side toolbar of the TradingView platform. Identify on the chart the starting point X, which can be any swing high or low point on the chart. Once you’ve located your first swing high/low point you simply have to follow the market swing wave movements. You need to have 4 points or 4 swings high/low points that bind together and form the harmonic pattern strategy. Every swing leg must be validated and abide by the Gartley Fibonacci ratios presented above. Step #2: How to Trade Gartley Chart Pattern: BUY at Point D which should satisfy the requirement CD = 1.272 – 1.618 of AB leg. Step #3: Place the Protective Stop Loss below wave X Step #4: Take profit equals the same price distance of the XA swing leg as projected from the D point
NSE:NIFTYEducation
by Fibonacci_Club
15
HCL INFO-A CASE OF WYCKOFF ACCUMULATION IN POTENTIAL MULTIBAGGER NSE:HCL_INSYS THE SCALE IS NOT LOCKED, ZOOM ACCORDINGLY WHEN NECESSARY In the daily chart.. A potential bullish cypher is due completion... this is a point of good long entry planned.. The other long entries are planned in phase c and d as mentioned.. the Markup target is a conservative one, and will be updated once the base formation i done.. here is the provisional target from the point and figure charts.. Details about wyckoff schematics can be found in the following link containing "Anatomy of a Trading Range " by Jim Forte ...https://static1.squarespace.com/static/54fed56be4b0b8a1d3d33918/t/55808ff8e4b0bcfabac9ae03/1434488824889/Anatomy+of+a+Trading+Range.pdf Also a reference to a blog by my favourite wyckoffian, Bruce Fraser stockcharts.com stockcharts.com Disclaimer... Interested , not invested...will think of taking position if satisfied with the fundamentals which is currently under search Not an investing/trading recommendation
NSE:HCL_INSYSEducation
by capsule91
2