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NIFTY TECHNICALLY


Dear Friends,

My view today In SGX Nifty Daily Charts "Three Black Crow" Bearish Reversal Pattern formed. Very Powerful and disaster bearish reversal pattern. At the time of Lehman Brothers Fall and down circuits in India same pattern formed in Nifty.

This is very rare pattern and forms rarely, from 2010 only 9 times this pattern formed in SGX Nifty and out of 9 times 6 times confirmed and given 120% plus profitable signal.

BEARISH THREE BLACK CROWS

Definition : This pattern indicates a strong reversal in the market. It is characterized by three normal or long candlesticks decrementing downwards. The opening of each day is slightly higher than previous close and prices progressively close at lower levels. This staircase like behavior signals the reversal of the trend.

Recognition Criteria :
1. The market is characterized by a prevailing uptrend.
2. Three consecutive normal or long black candlesticks are observed.
3. Each candlestick opens within the body of the previous day.
4. Candlesticks progressively close at new lows, below the preceding day.

Pattern Requirements and Flexibility : The Three Black Crows consists of three consecutive normal or long black candlesticks. The last two candlesticks must open within the range of the preceding candlestick and close lower.

Trader’s Behavior : The pattern appears in a context where the market has stayed at a high price for too long. The market is still going up and it is now approaching a top or has already reached the top. Then we see a decisive downward attempt represented by the first black candlestick. Erosion of prices continues in the next two days characterized by lower closes. Bulls are now forced to take profits.
Sell/Stop Loss is triggered.

The confirmation level is defined as the last close. Prices should cross below this level for confirmation.

The stop loss level is defined as the last high. Following the bearish signal, if prices go up instead of going down, and close or make two consecutive daily highs above the stop loss level, while no bullish pattern is detected, then the stop loss is triggered.

NIFTY

Comments

  1. Abhikhos2723 May 2013 at 19:06

    The Nifty goes down by 130 Points do we say something no the Screen and the Numbers do all the Talking

    ReplyDelete

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