Skip to main content

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

Post a Comment

Popular posts from this blog

Wizard of Dalal Street: Govind Parikh's investment mantra

Wizard of Dalal Street: Govind Parikh's investment mantra Govind Parikh of Govind Parikh Securities says selling right is more important than correct buying. He says it is necessary to keep a lot of cash. "We keep an average 10 percent cash in our portfolio," he says I like to buy things in a bad market. Additionally, don't look current cash flow, concentrate on future cash flows — that is what  I look at," says Govind Parikh of Govind Parikh Securities. He advises investors to buy good quality stocks when the market crashes. While sharing his investment philosophy with ace investor Ramesh Damani, on the Wizards of Dalal Street, Parikh says management integrity is very important when deciding which stock to bet on. He tells investors not to buy stocks impulsively. According to him, selling right is more important than correct buying. He says it is necessary to keep a lot of cash. "We keep an average 10 percent cash in our portfolio," he says. He al...
2 comments
Read more

Market Crash -Nifty below 9000

Yesterday, the Indian benchmark was opened on a gap up note at 9,285.40 levels, witnessed some selling pressure that drifted it to a low near the psychological support of 9,000 levels. However, a pullback was witnessed and index made a high of 9,403 levels but index started erasing gains in last hour of the trading session and closed below the psychological support of 9,000 levels for the very first time since March, 2016. Most of the indices were closed on a negative note out of which media stocks eased 5.95%. Market breadth was negative as 621 stocks were advanced while 1,206 stocks were closed in the red.  Maximum Call open interest (OI) of 15.35 lakh contracts was seen at the 10000 strike price followed by a 10500-strike price which 13 Lakhs. Highest call writing was seen at the strike price of 9500, at which 4.61 lakh contracts traded. Call option suggests 9500 will be next hurdle. Maximum Put open interest of 10 -lakh contract was seen at the 8100-Strike price followed by ...
Post a Comment
Read more
  NASDAQ's Crack Will Rattle Global Equities During the week, the confidence of the bulls got shattered when tech-focused US companies crashed rattling the entire financial markets. Nasdaq's crash does not look like a normal correction but seems like a bigger downward spiral unfolding after valuations sky-rocketed. Given that US elections are only 52 days away, it seems unlikely that US markets will make fresh highs again and there is every likelihood that selling pressure may continue even in broader markets. Crude oil too has given up most of its gains and prices are below USD 40 per barrel on expectations of lower demand going ahead which suggests that global recovery might take longer than earlier anticipated. In contrast surprisingly, gold's move is not hinting at any major crash in the financial markets, given that gold prices consolidated and remained steady even when Nasdaq plummeted. One of the important ways to analyze the psyche of an investor is by measuring mut...
Post a Comment
Read more