Nifty does a weekly deadlock..

Spindle (Weekly) candlestick: A short and small candle body, this pattern is called "spindles", which means dealing with square wrestling contention.
The opening price and the closing price are of only slight movement to the final price which is also the highest and lowest prices.
The buyer or seller is not dominant over the other (to each other), resulting in a deadlock. If the spindle follows a large white candle or a prolonged rally, it means that there is lack of pressure on the buyer, & the market is likely to immediately reverse.

Nifty makes an inside day..

Inside days have a 'lower high' and a 'higher low' than the previous day.
These are also generally narrow range bars. In other words, the range of the bar from the high to the low of the bar is relatively narrower (approximately 50% of the range of at least the immediately preceding bar is recommended) than the most recent bar.
The smaller the inside day is the lower your risk will be.
The goal of the bulls and bears are to always push prices higher (if you're a bull) or lower (if you're a bear) than the previous day's high or low. When that does not happen, then their power struggle ends in frustration for both sides.
Inside days happen when there is a fight between the bulls and the bears. In fact, the strength of the bears and bulls are about equal and neither side gains any ground in pushing the stock higher or lower that's why it ends up as a day that has less of a range of movement than the prior day.
So neither side could push the price in the direction they wanted. It creates little movement in either direction. That creates short-term frustration.
Usually this power struggle lasts no more than one day. It is EXTREMELY rare to have a NIB followed by another NIB! In fact the odds are extremely low that you would have an inside day followed by another inside day. If you ever see one you might even want to add to your position because the price move could be outstanding!
Trading inside days is like trading a shook-up bottle of pop, soda or whatever you like to call sweet carbonated drinks in a bottle.
When you shake the bottle and you twist off the cap, it will explode! Those who wanted to push the prices higher or lower will try again the next day and usually one side will overpower the other and win. It's like a tug-of-rope...eventually one side dominates.
For example, if the bulls outnumber the bears then on the following day prices will go higher. And, conversely, if the bears outnumber the bulls then on the following day then prices will go lower. That's how we profit. We simply take the side of the group that has the most power to push prices in their direction! - DaysTrading Coach.
"An inside day is often used to signal indecision because neither the bulls nor the bears are able to send the price beyond the range of the previous day. If an inside day is found at the end of a prolonged downtrend and is located near a level of support, it can be used to signal a bullish shift in trend. Conversely, an inside day found near the end of a prolonged uptrend may suggest that the rally is getting exhausted and is likely to reverse." -Investopedia

Nifty remains down in month while making a "Pin Bar"/ Hammer pattern in day T/F.

Nifty makes a bearish "Evening star" pattern in the weekly T/F.

Nifty shoots a star.

The Shooting Star formation is considered less bearish, but nevertheless bearish when the open and low are roughly the same. The bears were able to counteract the bulls, but were not able to bring the price back to the price at the open.
The long upper shadow of the Shooting Star implies that the market tested to find where resistance and supply was located. When the market found the area of resistance, the highs of the day, bears began to push prices lower, ending the day near the opening price. Thus, the bullish advance upward was rejected by the bears.
The pattern requires confirmation from the next candlestick closing below half-way on the body of the first.

Nifty exhibits ST reversal "Harami" pattern at the top.

Nifty does the follow up to morning star with a closes above 20sma.

Nifty shows up a "morning star" amidst bad news.

Definition of 'Morning Star'

A bullish candlestick pattern that consists of three candles that have demonstrated the following characteristics:

1. The first bar is a large red candlestick located within a defined downtrend.
2. The second bar is a small-bodied candle (either red or white) that closes below the first red bar.
3. The last bar is a large white candle that opens above the middle candle and closes near the center of the first bar's body.

As shown by the chart, this pattern is used by traders as an early indication that the downtrend is about to reverse.





Read more: http://www.investopedia.com/terms/m/morningstar.asp#ixzz1vmee1sjU

Investopedia explains 'Morning Star'

A morning star pattern can be useful in determining trend changes, particularly when used in conjunction with other technical indicators. Many traders also use price oscillators such as the MACD and RSI to confirm the reversal.

Read more: http://www.investopedia.com/terms/m/morningstar.asp#ixzz1vmeyuZ00

Nifty's indecision reaches its peak near the bottom with a "long legged doji"..

Definition of 'Long-Legged Doji'

A type of candlestick formation where the opening and closing prices are nearly equal despite a lot of price movement throughout the trading day. This candlestick is often used to signal indecision about the future direction of the underlying asset.

Investopedia explains 'Long-Legged Doji'

Long-legged doji candles are deemed to be the most significant when they occur during a strong uptrend or downtrend. The long-legged doji suggests that the forces of supply and demand are nearing equilibrium and that a shift in the direction of the trend may be coming.
Read more: http://www.investopedia.com/terms/l/long-legged-doji.asp#ixzz1qJJ71QWI

Nifty reaches the channel bottom to seek the support of 20sma.

Nifty week's candle- Dark Cloud Cover: Refer the TA file- 1. JustNifty TA(27th Feb)

Nifty, thogh makes a reversal pattern, ends firm.

Bearish Harami
The bearish harami is made up of two candlesticks. The first has a large body and the second a small body that is totally encompassed by the first. There are four possible combinations: Blue/Blue, Blue/Red, Red/Blue and Red/Red. Whether a bullish reversal or bearish reversal pattern, all harami look the same. Their bullish or bearish nature depends on the preceding trend. Harami are considered potential bearish reversals after an advance and potential bullish reversals after a decline. No matter what the color of the first candlestick, the smaller the body of the second candlestick is, the more likely the reversal. If the small candlestick is a doji, the chances of a reversal increase.
I'll update the 5-min chart posted in Pre-Market for a likely follow up. It shows 2 possibilities.

Nifty in a state of equilibrium with a double doji..

Double Doji
The double doji formation is neither a bullish or bearish formation, but represents a condition in which the open and close for the first session are the same, followed by a second session in which the open and close are again the same.
The Doji hints us that the market is in a state of balance of powers: the buyers strength has run out but so is the sellers'. So this is a state of temporary calmness before a major move. This pattern is usually found when both sellers and buyers are exercising the same pressure.
Double doji refers to the equilibrium state in which buyers and sellers are. Thus, typically it can be interpreted as a sure signal that a trend reversal will occur.
Mark the boundaries of theses "double doji" for a confirmed breakout or breakdown.

Nifty, indecisive till 3.00PM, decided to continue its trend.

Rising Three Methods Bullish Pattern: Continuation Trend: Bullish Reliability: High How to Identify it The first day is a long white day The second, third, and fourth days have small real bodies and follow a brief downtrend pattern, but stay within the range of the first day The fifth day is a long white day that closes above the close of the first day What it Means In an uptrend, a long white day occurs, following by three days of small real bodies that fall into a short downtrend. On the fifth day, the bulls come in strong to close at a new high. This small downtrend, in between two long white days, is consistent with investors taking a break. The upward trend should continue. --------------------------------------------------------------------------------------------- Mat Hold Bullish Pattern: Continuation Trend: Bullish Reliability: High How to Identify it The first day is a long white day The second day gaps up and is a black day The second, third, and fourth days have small real bodies and follow a brief downtrend pattern, but stay within the range of the first day The fifth day is a long white day that closes above the close of the first day What it Means The Mat Hold pattern is similar to the Rising Three Methods pattern. In an uptrend, a long white day occurs, following by three days of small real bodies that fall into a short downtrend. On the fifth day, the bulls come in strong to close at a new high. It appears that attempts to reverse the trend occurred, but failed. The upward trend should continue.

Nifty indecisive with an Inside day..

'Inside Day'
A candlestick formation that occurs when the entire daily price range for a given security falls within the price range of the previous day. Inside day often refers to all versions of the harami pattern and can be very useful for spotting changes in the direction of a trend.

Investopedia explains 'Inside Day'
An inside day is often used to signal indecision because neither the bulls nor the bears are able to send the price beyond the range of the previous day. If an inside day is found at the end of a prolonged downtrend and is located near a level of support, it can be used to signal a bullish shift in trend. Conversely, an inside day found near the end of a prolonged uptrend may suggest that the rally is getting exhausted and is likely to reverse.
Using HEma & LEma for Trading from Tech.Table(TT):
In the TT, there are four guidelines given for using HEma & LEma in trading:-
When prices move above Low Ema & Closes: Buy on dips to High ema+
When prices move above High Ema & Closes: Buy & Hold as upward momentum picks up.
When Prices move below High Ema & Closes: Sell on rises to Close Ema/ Low Ema-
When Prices move below Low Ema & Closes: Sell & Hold as downward momentum picks up.

Trend indicator in TT is 5DEma. One could opt for JNSAR too.

While the market is comfortably above 5DEma/JNSAR, the close below HEma suggests weakening of upward momentum which means short term traders would move into sell on rises...investors have taken a pause as well as do part booking.
Subsequently, if market survives the LEma, it would attempt to move higher. In a strongly trending market, such as the current one, market is coming only upto 5DEma so far. And after a two days of sideways move, it has closed above DHEma & poised to take another move higher. In normal conditions, the close below HEma generally takes the market towards LEma-20pts.
Markets have occasionally closed above HEma but has gapped down next day. Most TA studies suggest overbought conditions but the corrections have been of “intraday” nature so far.

While the market is comfortably below 5DEma/JNSAR, the close above LEma suggests weakening of downward momentum which means short term traders would move into buy into dips...investors return to re-enter into their fallen favourites.
Subsequently, if market is unable to close above HEma, it would attempt to move lower again and the downward momentum returns once it closes below LEma.
Knowing the market strength/ weakness with the help of prices’ positioning in the Tech.table of different Time frame, one could choose good trade set ups and initiate trades at appropriate levels. The levels are arrived at using Pivot table and Tech.table and other considerations such as Fibonacci table, Elliott wave study, etc.

While reading the TT during uptrend, it is very important to know that as long as the Week TA is in upmode(green), the down (red) that appears in day TA will not give sharp falls except at the point of major reversal. Similarly as long as the Day TA is in upmode(green), the down (red) that appears in Hour TA will not give sharp falls except at the point of major reversal. And during downtrend, read the same appropriately by respecting the higher T/F TA.

TT-Tech.table; T/F- Time frame; TA-Technicals.

Nifty continues to display many reversal patterns in the day T/F.

I am raised as a Hindu and when people talk to me about religion, I show them my religion's potential, its rich heritage. My closest friends are from Islam, Christianity, Sikhism, Jainism & Buddhism. I respect their religions and they respect mine. No religion has shown God in person. No one has seen God and proved it to the world. It is one's belief...faith that holds their life together...keeps them centered in joy & sorrows...in trials and tribulations.

I feel God in everything I do and I strongly believe in all the Gods of Hindu religion. To some, they may be Just Stones but to me & to many, they are real and I never felt the urge to prove it to anyone. So what if someone questions the presence of my God.

In this House, JNSAR is God. Many follow it like it is their own religion. Any problems?

Why do you come to the market? For entertainment..? or to make money..?

Haven't you seen Businessmen touching their work place, praying before starting their business. It is the one that gives them their bread & butter. One who worships his work makes it his God, his religion.

Even if you beg, cry & complain, market will not give you a dime. But if you follow JNSAR (a good guide to follow the market), it will make you richer.

Just as I revere being a Hindu, I know my Islam friends, Christian friends, Sikh friends, Jain friends and Buddhism friends are a revered lot. I respect each one of them for what they are and accept them whole heartedly. And I never considered to convert them to my religion.

Follow whatever you believe in..-5Sma, J10SAR, Trendline, Macd, EW, 5-20sma combo..Be truthful, sincere to it. Let your words not belittle anyone/ any system... What is the big hullabulla about JNSAR not giving target/ Stoploss, etc.. and hence it is not a trading system. Fine. I'll have the money rather than that perfect system. I don't want to know the target as long as the money keeps flowing in. I don't want a stop loss as long as I'm in a trade that gives me money.

JNSAR is GOD here. It may be just another number for you. Not to us. Any problems. Should I apologise for making it a GOD. OR should you apologise for hurting everyone's sentiments.

Bearish belt hold is a trend-reversal candlestick pattern indicating the beginning of a new downtrend after a significant uptrend (Day Time frame only). It is a single candlestick pattern formed of a long red bearish candlestick, which is an opening marubozo (have no upper shadow). Bearish belt hold candlestick occurs frequently and is considered less reliable and thus confirmation of trend change is necessary.

The requirements of bearish belt hold candlestick are:

• The candlestick should form after a significant uptrend.
• The price should open above a significant gap and the opening price should be the highest price of the day.
• The day should be noticeable with high bearish activity and the price should close at or near the lowest price of the day.

Bearish belt hold candlestick appears when bulls fail to keep the upward trend (often above a significant resistance). Many traders begin to sell-off their positions and this mark the beginning of a new downtrend.

The confirmation of trend-reversal can be a bearish candlestick, a lower gap opening or a lower close on the next trading day. Traders are also used to use other tools and indicators confirm price trends and to enter and exit trades. 1. JustNifty TA(08th Feb)

Nifty, uptrending, forms a common doji with rising "VIX"...

Doji candlestick formations carry important market informations on their own and with preceding and following candlesticks. Doji candlesticks are characterized by very small body; formed as a result of very close (virtually equal) opening and closing prices.

When taken singly doji are neutral candlestick patterns, but with adjoining candlesticks they indicate market reversal and bullish or bearish trends.

Common Doji: The candlesticks look like a plus sign, cross or inverted cross. When they occur after a significant uptrend or downtrend, they indicate trend reversal/ exhaustion.

1. JustrNifty TA(03rd Feb)

Nifty follows "down" the "Hanging man" that formed at a critical point (200sma)

Formation of patterns at critical junctures should add to your convictions and make you confident to take those minimum steps such as "booking out" , if not the aggressive trades.

1. JustNifty TA(31st Jan)

2. BankNifty TA(31st Jan)

Nifty ends the week with a "Hanging man" which requires a follow up confirmation.

Nifty has formed a Hanging man pattern in Day chart.
The Hanging Man pattern is characterized by a small Real Body near the top of the price range. The Real Body can be Red or Blue, although a red candlestick is preferable. A red candlestick is slightly more bearish since it shows that the close could not get back up to the opening price level. The Hanging Man has a long lower shadow that should be at least twice the length of the Real Body. The upper shadow should be very small or non-existant.
A Hanging Man can be confirmed by a bearish gap between the Real Body of the Hanging Man and the open on the next session. In other words, the investor should look for the next session opening lower than the Real Body of the Hanging Man. The greater the gap, the stronger the signal.
A Hanging Man may be a stronger signal if the subsequent session shows a red Real Body with a close lower than the close of the Hanging Man.
A Hanging Man may be a stronger signal if it is followed by another, well-formed Hanging Man in the next session.
The longer the Lower Shadow of the Hanging Man the greater the significance of the pattern.
The smaller the Real Body and the Upper Shadow the more significant the pattern.
If the uptrend is strong and there are major bullish indicators before the Hanging Man, then perhaps the bullish momentum is overwhelming and the Hanging Man won't work. In such cases it is wise to wait for bearish confirmation before acting.

1. JustNifty TA(30th Jan)

At the bottom(4532), a Hammer was followed by a red candle(down) to shake off pattern followers before the reversal took place. However, the second Hammer @ 4588 played true.

Nifty finds support @ daily channel

This is the second attempt to find a bottom with a "Bullish hammer" which is not a reliable one unless followed with a Bull candle. The last one failed few days ago. "Tera kya hoga..?"
Today's big recovery is from the "Daily channel support"...so far good.
The monthly channel has a support at 5725-5750 with weekly 26-ema @ 5726. Once again, the recent highs -that of today's and yesterday's become resistances. A good upward reversal should close above previous day's high. And the same goes for downward too.
It is relevant to know all these as they come quite handy incase of a sharp reversal again with 2 trading days left for the settlement. Bulls are continuously whipped..medicated..only to be whipped again.. That is settlement blues.
Though it is difficult to predict consistently how the intra moves will unfold, there are simple trading systems(ORB, Low ema, trendlines) which guides you for entries..targets and if you have the discipline, you will gather wealth slowly.
Prepare yourself well for the trading day. If your overnight's positions are against the trend, hedge them till a reversal gets confirmed. Having no position is also a "Position".

Nifty does a "Bullish Hammer pattern" & needs a follow up.

Though Nifty has made a "reversal pattern" which requires a "Follow up confirmation, one should be prepared to trade 5925/5950 - 6100/6135 zone & reverse to Shorts since weekly set up continues to be weak.

Bearish scenario: Top is in; 1st wave done and a 23.6% to 38% retracement to be followed by a very big drop.

Bullish scenario: A temporary bottom is in, if not another one at 5750-5850 and market reverse to make another high.

.....................................................................

The Bullish Hammer Pattern is a significant candlestick that occurs at the bottom of a trend or during a downtrend and it is called a hammer since it is hammering out a bottom. The Bullish Hammer Pattern is a single candlestick pattern and it has a strong similarity to the Bullish Dragonfly Doji Pattern. In the case of Bullish Dragonfly Doji Pattern, the opening and closing prices are identical whereas the Bullish Hammer Pattern has a small real body at the upper end of the trading range.

Recognition Criteria:

1. The market is characterized by a prevailing downtrend.
2. Then we see a small real body at the upper end of the trading range. Color of this body is not important.
3. We would like to see the lower shadow at least twice as long as the real body.
4. There is no (or almost no) upper shadow.

Explanation:

The overall direction of the market is bearish, characterized by a downtrend. Then the market opens with a sharp sell off implying the continuation of the downtrend. However, prices suddenly turn upwards, the sell-off is quickly abated and bullish sentiment continues during the day with a closing price at or near to its high for the day which causes the long lower shadow. Apparently the market fails to continue in the selling side. This observation reduces the previous bearish sentiment causing the short traders to feel increasingly uneasier with their bearish positions.

Important Factors:

If the hammer is characterized by a close above the open thus causing a white body, the situation looks even better for the bulls.

The Bullish Dragonfly Doji pattern is generally considered more bullish than the Bullish Hammer Pattern and a higher reliability is ascribed to this Doji than the Bullish Hammer Pattern.

The reliability of Bullish Hammer Pattern is low. It requires confirmation of the implied trend reversal by a white candlestick, a large gap up or a higher close on the next trading day.

http://www.candlesticker.com/Cs18.asp