Point and figure chart analysis...!

[timepass]

You know what, that scenario of 16500-->15900-->16500-->15800 could well be the RBI policy day move

 

[Brill]

PraveenBhai,

Can you post your analysis of Daily P&F chart http://stockcharts.com/freecharts/pnf.php?c=%24BANKNIFTY,PWTADAYRNR[PA][D][F1!2!!!2!20]

Thanks in Advance

 

[praveen98]

PraveenBhai,

Can you post your analysis of Daily P&F chart http://stockcharts.com/freecharts/pnf.php?c=%24BANKNIFTY,PWTADAYRNR[PA][D][F1!2!!!2!20]

Thanks in Advance

Hi Brill,
Yes, of course we can do analysis of daily spot chart,but i prefer Futures chart to spot chart as we trade futures....any way i will do the analysis just for your sake ...i have changed the reversal size to 3 and box size as 50...please visit the following link...

http://stockcharts.com/freecharts/pnf.php?c=$BANKNIFTY,PWUADAYRNR[PA][D][F1!3!50!!2!20]
It is Bank nifty spot chart and it has generated double bottom sell on 5th April and it corrected up to 15500...next box in line with current column is 15450 and the reversal level to X column is 15650....and 15900 level is critical point...If you observe that in the current Supply(O) column there are 15 boxes filled...and half way mark is 15900 ....the trend of the chart is up ...but the view will be negated if it breaches 15400 spot levels...
Now let us see how 200X3 chart is appearing...Please go through the following link
http://stockcharts.com/freecharts/pnf.php?c=$BANKNIFTY,PWUADAYRNR[PA][D][F1!3!200.0!!2!20]
You can clearly see Bank nifty spot is in Down trend ,because it is below the bearish resistance line...Now the trend changes to Up if price reverses from current levels and breaks 16400 levels, because at that level it breaks bearish resistance convincingly...The chart generated double top Buy@ 14800 level and now in supply column...we have to see how the price action will unfold in the coming week ...so one with bearish view can short with 16400 spot as stop loss as per the chart...the chart is not advocating to go long as it is below bearish resistance line...
Best Regards

 

[praveen98]

Hi,
What an action packed post lunch session...Just wanted to share a special pattern " Bearish signal reversal.."...Previously i described " Bullish signal reversal" in post no:101...This signal is the opposite signal to the one described in Post.101....

Usually the pattern consists of 7 columns and bears fail to push down not more than 1 or 2 boxes in each supply column...See the image below..subsequent lows in each column is 2 boxes more than previous supply column 15560/15520/15480 and the 7th column which is a demand(X) column generated buy signal @15600 ...

These patterns are special for their " Element of surprise"...

The chart is 20X3 HL chart TF:1M

Happy Trading:clap: