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 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
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.