Hello traders,
Hope you are doing well. Today we are going to share an educational idea for Bank Nifty for educational purposes.
Investors/traders are advised to prevent themselves to invest/trade based on this idea as option trading possess high-risk that may set your savings on fire in no time...
So let's start, as we can see that in last few trading sessions we are not getting any bullish momentum and Bank Nifty keep on forming lower high in hourly timeframe. If we move to Daily time frame we have seen the tradeline break down and is set to breakdown the head and shoulders in downside but the good thing is Bank Nifty is on it's strong zone where it took the retesting many times in daily timeframe so this zone is very crucial zone given in chart..
When we look at the weekly chart we have witnessed two equal peak and retested the support twice already and currently is on the strong support. If we gets any red candle closed below this zone then situation may be alarming and we could see another great fall and bear may capture the market.
Let's see what is double top and how it works..
A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset's price falls below a support level equal to the low between the two prior highs.
KEY TAKEAWAYS
A double top is a bearish technical reversal pattern.
It is not always easy to spot because there needs to be a confirmation with a break below support.
While a double top is a bearish signal, a double bottom is a bullish signal.
Top tops usually have an upswing, initial peak, trough, second peak, and neckline.
Investors can short trade after the break or place small trades, as double tops may have limited profit potential.
Let's hope this weekly candle doesn't closed below the given zone otherwise we may witness long term downtrend which may be continue for weeks and months..
In the meantime safe trading
Hope you are doing well. Today we are going to share an educational idea for Bank Nifty for educational purposes.
Investors/traders are advised to prevent themselves to invest/trade based on this idea as option trading possess high-risk that may set your savings on fire in no time...
So let's start, as we can see that in last few trading sessions we are not getting any bullish momentum and Bank Nifty keep on forming lower high in hourly timeframe. If we move to Daily time frame we have seen the tradeline break down and is set to breakdown the head and shoulders in downside but the good thing is Bank Nifty is on it's strong zone where it took the retesting many times in daily timeframe so this zone is very crucial zone given in chart..
When we look at the weekly chart we have witnessed two equal peak and retested the support twice already and currently is on the strong support. If we gets any red candle closed below this zone then situation may be alarming and we could see another great fall and bear may capture the market.
Let's see what is double top and how it works..
A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset's price falls below a support level equal to the low between the two prior highs.
KEY TAKEAWAYS
A double top is a bearish technical reversal pattern.
It is not always easy to spot because there needs to be a confirmation with a break below support.
While a double top is a bearish signal, a double bottom is a bullish signal.
Top tops usually have an upswing, initial peak, trough, second peak, and neckline.
Investors can short trade after the break or place small trades, as double tops may have limited profit potential.
Let's hope this weekly candle doesn't closed below the given zone otherwise we may witness long term downtrend which may be continue for weeks and months..
In the meantime safe trading