Time to Sell or Hold Your Horses?
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In the latest edition of the weekly newsletter dated December 30, 2023, significant attention was drawn to the emergence of multiple Bearish Harmonic patterns within the price reversal zones of 21,700 and 22,135 for Nifty. As predicted, the index peaked at 22,124 before undergoing a reversal, aligning precisely with the outlined harmonic patterns.
A closer look at Nifty's daily chart reveals the presence of the Bear Sash candlestick pattern at its recent high. For those unfamiliar with this pattern, a comprehensive explanation can be found in the accompanying video linked here.
Adding to the cautionary signals, the possibility of a Bearish Island formation is looming, contingent on today's closing performance. A Bearish Island pattern occurs when an isolated price gap up is followed by a gap down formed at the same levels, typically indicating a shift in market sentiment, which forms between two sessions.
What is your trading plan?
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Excellent write up , i knew about island reversal, sir but you have explained the intricacies of the pattern in a simple and understandable manner, please keep on posting more such articles good for beginners like us
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Thanks for reading.
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B bbrijesh referenced this topic
