Island Gap reversal is one of my favorite trade setups. Which we talked about it numerous times in our blog with live examples. Following are some of the trade setups and tutorials.
Nifty futures on Daily timeframe formed excess on election results day. Excess is the end of one auction and the beginning of another auction. However last Friday there is a failure to follow thro post the Excess and ended as an inside bar and still, the focus on the excess setup remains invalidated.
The big week filled with events is about to start and its good time to have a check up what happened so far in this week and what is the current state of the market and what is the context going on.
Nifty Futures opened gap down on Thursday trading session. The trading activity went on more emotional. During the second half of the session more weaker hand sellers participating in the trade.
Every-time I see the profile charts I see traders fighting for what they want. I see fear & greedy emotions in them. I see the competition floor where traders engage themselves
How long this sideways price action in Nifty Futures is likely to continue? I guess the same thing might be running through your mind as well.
April Expiry is near and so lot of expectation from the trading community. India VIX jumped to 24 levels however markets are still moving a very narrow range for this expiry. Nothing much really happened since the start of April Expiry. So far the entire expiry traded in 250 point range i.e less than 2.5%
On Thursday Nifty Futures opened with the extreme sentiment (gap up). However, Nifty Futures failed to keep the buyer’s enthusiasm up and turned towards the previous days low and completely reversed all its gains in the early morning trading.
Nifty futures so far in April series moving a very narrow range and 10 day ATR is around 110 levels and volatility is on the falling side.
Bank Nifty futures on 5min timeframe turned to short mode on quick flip system with immediate supports coming around 30,003 levels. Price maintaining below 30,003 could bring possible downtrend towards 29800 and 29450 levels.
Nifty Futures Friday Sentiment ended extremely on a 5min timeframe which is not a good sentiment for a follow thro rally. Quick flip supports for Monday coming around 11734. Price started accepting below 11734 brings more of downwards correction towards 11640 levels and lower.
Nifty Futures quick flip system ended positively with an extreme sentiment which brings the odds of possible short term correction. Nifty Futures went one way in the second half of the trading session rallying almost 180 points from the noon low.