18 Aug 2015

NIFTY OPENED GAP UP WITHIN THE PREVIOUS DAY RANGE. THERE WERE THREE LEVELS WHICH ARE OF INTREST JUST AFTER OPENING.

1. PDC

2. PREVIOUS DAY SWING HIGH NEAR TO OPENING

3. PDH

NIFTY MOVEDUP AND MADE A RANGE HIGH @ 8528. THE LEVEL WAS IMMEDIATLY REJECTED BY A BEARISH CANDLE. GENERATED A IRH- DYNAMIC DECISION POINT

NIFTY AGAIN CAME TO TEST THE LEVEL OF IRH AND THE LEVEL WAS REJECTED BY MAKING THE INVERTED HAMMER. ALSO IF WE DO THE VOLUME ANALYSIS THEN AT FIRST REJECTION THE VOLUMES WERE QUITE HIGH AND IF WE SEE VOLUME AT BULLISH LEG JUST BEFORE THE SECOND TEST, THE VOLUMES WERE DIMISHING AND LOW VOLUME WERE SEEN. WHICH INDICATES THE WEAKNESS OF THE BULLISH SIDE. MADE A BOF IN 1st TST OF IRH. SHORT OPPORUNITY AS SHOWN IN FIGURE.

AFTER 1st BOF OF RN-8450, PRICES BOUNCED BACK AND AGAIN CAME BACK TO TEST THE RN-8450. BOF OCCURS AT 1st TEST OF RN-8450. ALTHOUGH IT WAS A LOW PROBABILITY TRADE AS CURRENT BIAS WAS BEARISH. ENTRY SIGNAL OCCURS AT BOF OF RN AT 1st TST.