What you see below is the Hourly Chart of NF. Its a line chart. There are times when too many gaps and volatile movements make your usual chart (Candlestick with all those wicks and Bar Charts with their tails) a bit of a mess to look at. It pays (literally) to switch to line charts to get a clear picture of the price action. After all Line chart is purely based on close price and its the Close which is very important !
What I want to illustrate from the above chart is;
1. The price action was a bit confusing with gaps and volatility as shown in the small inset pic (candlesticks). However when moved to line chart it clearly showed a small HNS formation complete with RSI Divergence.
2. The down leg shaded in red is also what one would say formation of LH and LL sequence.
If you ever get confused with your Candles and Bars you can switch to the LINE; which would have given you a clear short signal at 7885 with 20 pointer stop (which was tad above the right shoulder).
Therefore I repeat again if you get confused with a messy chart formation try and switch to line chart to get a clear picture !
Cheers !!!
What I want to illustrate from the above chart is;
1. The price action was a bit confusing with gaps and volatility as shown in the small inset pic (candlesticks). However when moved to line chart it clearly showed a small HNS formation complete with RSI Divergence.
2. The down leg shaded in red is also what one would say formation of LH and LL sequence.
If you ever get confused with your Candles and Bars you can switch to the LINE; which would have given you a clear short signal at 7885 with 20 pointer stop (which was tad above the right shoulder).
Therefore I repeat again if you get confused with a messy chart formation try and switch to line chart to get a clear picture !
Cheers !!!
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