The “Bat pattern” incorporates the 0.886XA retracement, as the defining element in the Potential Reversal.
The B point retracement a 0.50 of the XA leg. The Bat utilizes a minimum 1.618BC projection which is already done.
In addition, Bat pattern is extended a 1.618 AB=CD calculation. It is an incredibly accurate pattern and requires a smaller stop loss than most patterns.
The following parameters are measured:
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Have you remember NIFTY BANK analysis? CLICK HERE to see
I had mentioned that it suppose to break the upper band of the channel causing taking a table, and it has perfectly followed my analysis.
On the 5th, I’m expecting Throw-Over for this parallel channeling. By utilizing the 2-wave and 4-wave to determine the wave 5th connected parallel channel but herein, I suppose to break the upper band of the channel causing taking a table of U.S. election by the Biden expecting.
In essence, after the completion of the 5th wave, we are going to correct A, B, C. For the correction, The “Control Price” can attract the price.
=> Why did the price make higher & higher technical reasons?
RSI-relative strength index
“Inventor-j.welles wilder,jr, invented in 1978”
What is Relative Strength Index (RSI)?
Relative Strength Index (RSI) is a momentum oscillator, Measuring the velocity and magnitude of direction of price movements. Momentum is the rate of the rise or fall price in RSI. It is used in computer momentum. The relative strength index was developed by j. Wellles Wilder and published in a 1978 book.
Bearish divergence occurs when price makes a new high but the RSI makes a lower high, thus failing to confirm. Bullish divergence occurs when price makes a new low but RSI makes a higher low.
How to calculate RSI?
The smoothed moving averages should be appropriately initialized with a simple moving average.
How does RSI help in trading?
The price oscillates between 0 and 100, traditionally the RSI is considered overbought when above 70 and over sold when below 30.
When indicators start going above 70, then it’s called the market overbought and it signals for the sell.
When indicators start going below 30 , then it’s called the market oversold and it’s a signal for buy.
(1)RSI Bullish-indicators survive in the range of 50-100.
(2)RSI bearish-indicators survive in the range of 0-50.
(3)RSI sideways-when indicators survive around 50,minor momentum
Indicators pattern-double top and bottom double:
Whenever an indicator creates a double top in the range of 70-100,then is the signal of strong reversal.
Whenever an indicator creates a double bottom in the range of 0-30,then is the signal of a strong reversal.
Advised to traders and investors: be careful to take long.
This pullback can push price 9066 up to easily.
At a,b and c of 50% retrecement zone from where price started to move downward.
Value area with 3 control lines has plotted of parallel channel.
Nifty is follwing weekly channel since long 2005 year
Target achieved Fib Retracement:
