What you see below is the NIFTY Daily Chart and a few observations;
1. Yes there is an Inverse HNS (blue dotted lines with shaded band as neckline) which is visible and indeed kind of given a break out. Minimum target to the upside from the breakout point is 500 odd points and maximum some 1000 odd points. This can take Nifty to some crazy levels. Now a caveat here...inverse HNS patterns have better chances of working out when formed near the lows or basing out moves and this one is kind of forming at the top.
2. I have also taken a liberty of drawing (red dotted lines) a small HNS that might form...please remember I am using the word MIGHT!!! So this shaded band is very significant for both the bullish and the bearish players.
3. What is important here and what matters most is that inspite of the last 5 days in red we are still in HH and HL sequence and that is the best way to define or follow the trend.
4. Yes its alright for traders to speculate and try and forecast but it is also equally important for them to change their views or bias as soon as the circumstances change and in this case it is THE PRICE ACTION! Speculation or forecasting works best with good risk management, which not only protects you from the risk of ruin but also lets you live another day.
1. Yes there is an Inverse HNS (blue dotted lines with shaded band as neckline) which is visible and indeed kind of given a break out. Minimum target to the upside from the breakout point is 500 odd points and maximum some 1000 odd points. This can take Nifty to some crazy levels. Now a caveat here...inverse HNS patterns have better chances of working out when formed near the lows or basing out moves and this one is kind of forming at the top.
2. I have also taken a liberty of drawing (red dotted lines) a small HNS that might form...please remember I am using the word MIGHT!!! So this shaded band is very significant for both the bullish and the bearish players.
3. What is important here and what matters most is that inspite of the last 5 days in red we are still in HH and HL sequence and that is the best way to define or follow the trend.
4. Yes its alright for traders to speculate and try and forecast but it is also equally important for them to change their views or bias as soon as the circumstances change and in this case it is THE PRICE ACTION! Speculation or forecasting works best with good risk management, which not only protects you from the risk of ruin but also lets you live another day.
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