Here are Bank Nifty and Nifty future and option setups occurred on 21 October 2020
- It is a strong bull candle, no tail on top after a gap up. Gap up trades are momentum trades. You could long here for a scalp and swing also.
- It is the first pullback in a strong trend. But the market is in a loss of momentum now. Without trapped traders, the market can not move. Those late bulls bought at candle 2 hit their stop loss.
- This is the second pullback in a strong trend and this candle took stop loss of weak bulls. Good for the scalp.
- Candle 4 is a small bullish candle and second pullback in a strong trend. The market has already entered into a range after a big move. The market may move sometime in this range. Good scalp trade.
- This is a three push up. Reversal setup. Traders should exit the swing position. This could be only a scalp trade because there has not been a trend line break.
- This candle is a two-legged pullback and first touch to EMA after more than two hours. But overlapped by last 3 candles. This could be a range and should be avoided.
- The candle is a pin candle. Though the body is bearish it could be a long scalp setup because this is a trap set up for early bulls who bought candle 6.
- Candle 7 profit target filled at this swing low. There has been a clear trend line break and this is the test of high. Short setup for at least for two legs.
- First pull back short in a strong bear move.
- Strong bullish hammer candle. Also a small wedge reversal.
- Short setup at the touch of EMA in a strong move. But two legs has not completed from the reversal setup from day low. This trade also not triggered. There has been no short triggered since this candle. If a swing trade had been taken from the reversal from the day low it would have ended in a big profit.
Nifty Trading Setup Review
- Gap up and strong bullish candle. This may be the low of the day. Long for scalp and swing.
- Second pullback after a strong move. Long scalp.
- This is also a second pullback. Two bigger pullbacks to EMA. Long.
- Two legs completed and profit target achieved for the third setup. Doube top at day high. Short for scalp and swing. Also, reverse swing position here.
- It is a small doji and two-legged pullback to EMA. Tight trading range below EMA. Good chance that it breaks downward. Which happened here.
- A first pullback in a down move Short.
- Hammer reversal candle after completion of two legs Long.
- Second entry and a trap set up for a long position. This is also a swing trade at day low.