Bullish Navarro
Prosenjit Ghosh
SEBI Registered Research Analyst | Price Action Trader | Mentor | Trainer | Algorithmic Trader | Quant | Winner of Zerodha 60 days & Fyers 30 days Challenges.
#NIFTY50 in the hourly chart has created a Bullish Navarro Harmonics Pattern, ideally the price should go up in between the range of 24755.85 to 24624.70.
The Game which can be played here:
As the Support is falling inside the range of the Bullish Navarro, there is a chance that the support might get engulfed and then the price might go up.
Whenever this happens on the chart the breakout traders, who plan to take short trades on the breakout of a Support gets trapped.
Not only that if the Bullish Navarro Pattern fires then that will also take out the Resistance, this will again interest the Breakout Traders to take long positions but at the same time price will also complete a Corrective ABC Pattern and that can take the price down again and create a Lower Low on the hourly chart as expressed by the arrows drawn by me.
I certainly feel in the near future both Long and Short trades will get stopped out in Nifty. So, we should all remain extremely careful while trading. Nifty will remain choppy in the coming weeks.
Note: This is not a Trading idea, this is only for educational purpose. This should not be construed as a Trade. This is just to show how Nifty can behave in the future based on Price Action Concepts. Price may or may not behave the way as I have plotted in this chart.