Monday, June 22, 2015

How i traded failed Bearish Bat



Nifty had Bearish Bat on its its daily chart, it took resistance primarily at .886 retracement of xa leg, but exceeded this resistance via long bullish candle which closed at its high, and also negated bearish bat pattern .

Thus then this bearish bat , turned into bearish crab pattern , which could take nifty to 1.618 retracement of xa leg.

However Nifty exceeded 1.618 projection of xa leg of bearish crab, which indicates, the prevailing trend is quite strong. and can further take nifty to 2.0 , 2.24, projection of XA leg, such moves are usually sharp and could also call for sharp reversals, thus should be traded with strict stop losses.



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