Technical Analysis using Al Brooks method

[sridhga]

 

[sridhga]

The above is Nifty hourly chart.
On 21st January after an up move bars 1 to 5 have formed an upward looking wedge.
Bar 6 has decisively broken the wedge to start a down swing.
The down swing channeled down to bar 14 on 25th Jan.
Bar 15 made an attempt to move back to ema. This is also when trend line was broken for the first time during the down swing.

 

[travi]

All the best for starting the thread

 

[sridhga]

 

[sridhga]

However that attempt to reverse by the bulls on the 25th failed.
20th bar on the same day resumed the down trend.
Another attempt to break the trendline was made by the bulls on 28th Jan and the 33rd bar did cross the trend line.
29th Jan opened with a gap up on 36th bar. This was the major attempt by the bulls to take the index back to the EMA.
Bars 29 to 40 changed the minor trend to sideways, while bulls attempted their push towards EMA.
This holds significance since this is the 2nd time the bulls tried in the current down trend to resist the bears.
Bars 36 and 41 have been the strongest attempts by the bulls to test the bear strength.
However, bars 41 and 42 indicate the failure of bulls once again.
This suggests that now downtrend may resume with much more momentum.
It is now clear that the bears are still in control and the second failure of the bulls gives bears much more confidence into pushing it down further.

PS: Next working day is the budget day. That is when chaos sets in and when chaos takes over no system is respected.

 

[Romeo1998]

very nice reading of price action good luck

 

[rajesh.singh]

However that attempt to reverse by the bulls on the 25th failed.
20th bar on the same day resumed the down trend.
Another attempt to break the trendline was made by the bulls on 28th Jan and the 33rd bar did cross the trend line.
29th Jan opened with a gap up on 36th bar. This was the major attempt by the bulls to take the index back to the EMA.
Bars 29 to 40 changed the minor trend to sideways, while bulls attempted their push towards EMA.
This holds significance since this is the 2nd time the bulls tried in the current down trend to resist the bears.
Bars 36 and 41 have been the strongest attempts by the bulls to test the bear strength.
However, bars 41 and 42 indicate the failure of bulls once again.
This suggests that now downtrend may resume with much more momentum.
It is now clear that the bears are still in control and the second failure of the bulls gives bears much more confidence into pushing it down further.

PS: Next working day is the budget day. That is when chaos sets in and when chaos takes over no system is respected.

This Downmove is in larger 3rd Leg, and kind of parabolic or climactic, so unless very strong BO, below the TCL low, we can expect Min. 10 bar 2 Leg Pullback , if bulls shows some strength. Budget could be spoilsport for either side.

 

[sridhga]

Whenever there is a strong trending bar, the traders' important question is whether to fade that bar or to go along with it.

 

[sridhga]

 

[sridhga]

Above is 15 min charts for 28th and 29th Jan showing a trading range. Breakout of this range on the upside failed. Now we need to see the latest breakout on the downside.