🛑 Banknifty forming Ascending parallel channel pattern in Day frame chart......
🛑 Usually it forms during uptrend markets
🛑To formation of ascending channel an underlying security / stock must forms an Higher highs and lower lows
🛑As we can see banknifty forming Higher highs and Higher lows
🛑 When we connected those higher highs and Higher lows we get an ascending channel
🛑What is higher high ❓
Well,
When an stock making new high than previous high is called higher high
For example , let's take an X company is trading at 11 Rs on 28th sep and Today X company Trading at 15 Rs this is called X company making Higher high
🛑What is Higher low ❓
Well,
When an stock get huge short and making low that Low price is not less than previous low.
In other words current low of an X company is high when compared to previous low
For example, let's take an X company which is trading at 9 Rs on 27th sep and made an high of 15 Rs yesterday today shorter's entered market they short X company's share now it is trading at 13 Rs
Means 13Rs low is higher than 9Rs low this is called Higher low
🛑What does Ascending parallel channel actually represents ❓
Well, when an stock or an index makes an new high and its short term correction is higher low (means it does not go below the previous low )
In other words when buyers were aggressive take the market upwards making new high and they doesn't let market go below the previous low which means they were in the control and they were not letting sellers to control the market
🛑 Banknifty now may take support from 37250-37200 levels and it may be bounce back from the Trend line support
🛑If banknifty breakdown the Trend line support then we can expect Sideways market for some couple of days
I hope that it will help a lot
If like it do follow for more
Have a nice day 😊
🛑 Usually it forms during uptrend markets
🛑To formation of ascending channel an underlying security / stock must forms an Higher highs and lower lows
🛑As we can see banknifty forming Higher highs and Higher lows
🛑 When we connected those higher highs and Higher lows we get an ascending channel
🛑What is higher high ❓
Well,
When an stock making new high than previous high is called higher high
For example , let's take an X company is trading at 11 Rs on 28th sep and Today X company Trading at 15 Rs this is called X company making Higher high
🛑What is Higher low ❓
Well,
When an stock get huge short and making low that Low price is not less than previous low.
In other words current low of an X company is high when compared to previous low
For example, let's take an X company which is trading at 9 Rs on 27th sep and made an high of 15 Rs yesterday today shorter's entered market they short X company's share now it is trading at 13 Rs
Means 13Rs low is higher than 9Rs low this is called Higher low
🛑What does Ascending parallel channel actually represents ❓
Well, when an stock or an index makes an new high and its short term correction is higher low (means it does not go below the previous low )
In other words when buyers were aggressive take the market upwards making new high and they doesn't let market go below the previous low which means they were in the control and they were not letting sellers to control the market
🛑 Banknifty now may take support from 37250-37200 levels and it may be bounce back from the Trend line support
🛑If banknifty breakdown the Trend line support then we can expect Sideways market for some couple of days
I hope that it will help a lot
If like it do follow for more
Have a nice day 😊