Bank Nifty and Nifty price action setup review 27 October

Here is Nifty and Bank Nifty price action setup review for 27 October

Let’s have a look into Bank Nifty setups occurred today.

Bank Nifty 5 minute spot chart

Bank Nifty made 2 big bearish candles after the open. This signifies climatic behaviour. 1st setup is a strong bullish candle at previous day low and a psychological level 24000. So, there is a chance that the market might reverse. This improves the odds of a good scalp and swing trade also.

2nd setup is a two-legged pullback to EMA after a bullish move. This candle’s body is bearish but large tail at the bottom. A hammer candle at EMA. Good for the scalp.

3rd setup is a strong bullish inside candle at EMA and a two-legged pullback. Scalp long.

4th setup is a big bullish engulfing candle. The candle is too big to take a trade. Because the stop loss will be bigger. Better avoid this setup. This is also a failed trend channel line breakout.

5th setup is a hammer candle though the body is bearish. This is also a two-legged pullback in a strong trending market.

These are the setups in Bank Nifty.

Let’s discuss the setups that occurred in Nifty.

Today nifty chart was almost the same as bank nifty

Nifty 5 minute spot chart

1st setup is a Doji candle at yesterdays low. After two big bear candle after opening, there is a chance that the market might reverse. The setup is forming at day low. So, there is a good chance that this is the low of the current day.

2nd setup is a two-legged pullback to EMA. The candle is a hammer candle. Good for the scalp.

3rd setup is also a two-legged pullback to EMA. Bull inside the candle. Good for the scalp.

4th setup is a wedge reversal. But the candle is a big engulfing candle. Risk is high and this setup should be avoided, though it has given some profit.

5th setup is a hammer candle though the colour of the candle is red. This is also a two-legged pullback to EMA.

In a strong trend like this pullback to EMA, setups work best.

If you have a question in mind feel free to comment below.

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