BankNifty-Twist & Turn-Will it die on Euphoria? Island ReversalDisclaimer:
This is not an Investment Advice. Trading leveraged products carries a high degree of risk and you could lose more than your initial deposit.
"Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell." -John Templeton
What Is an Island Reversal?
An island reversal is a price pattern indicating grouping of days on either side by gaps in the price action.
This price pattern occurs when two different gaps isolate a cluster of trading days.
Pattern usually indicates reversal in trend - which can be short term or long term.
Check the charts
7th Sep 2022 Gap down opening as shown in circle shape & 8th Sep 2022 - Possible Gap up opening in next trading session
Check the Snapshot / Image - Island Reversal Pattern
Try to relate with the current chart of BankNifty. Check yourself where are you in the chart & what could you expect if something similar has to repeat.
Thanks for reading
