Dont get misguided with Candlestick pattern

It had been nightmare for BTST traders as Nifty opened gap down and didnt gave any chance for BTST players to exit in profits but positional traders shouldn’t worry much. As i said yesterday that we might get a dip today and best buy would be in the range of 7840-7870 and we have closed exactly at the trigger point on upside. Though looking at Daily chart of Nifty, many of novice technical analyst or traders would say that we have got “Evening star” pattern but IT’S NOT! One of the rule for the pattern is a Long red third candle which in this case is green so a reversal on this pattern cannot be a valid one. Secondly, today again we got low exactly at 200 day SMA which is at 7811. Thirdly, if we calculate fibonacci support level of the rally 7772-7940, it comes exactly  at 7811 where we pinched a low today. So all the factors except indicators are still showing hopes of upside. Though my ultimate target remains 8055 and stop loss at 7740 but a BTST trade can take call with a tgt of 7970 while stop loss could be 7810 on Nifty spot level. Still stay hedged and take decision as per your risk appetite.

Leave a Reply

Your email address will not be published. Required fields are marked *