Trade setups

Best Trade setups for Monday [17-09-2018] Using Price Action

Introduction

My Analysis for identifying  Trade setups  will be done using four hour candlestick chart. My Analysis will not be done  using any indicators  it will be focused  purely on   price action. I will not be providing any targets or trade recommendations, but simply my view for the markets and help you identify strong and weak stocks . I will be using Tradingview.com for my charts

Please Check out our “Disclaimer” Policy Before going forward. You Can check the disclaimer policy over here.

Index Analysis

Nifty 50

Trade Setup For Nifty on Monday [17-09-2018]
Four Hour Chart of Nifty 50.
Now we will analyse the Trade setup.

  • Nifty 50 was in an downtrend  as the Market was making newer lower highs and newer lower  lows from 11,700.
  • The index Made  an all time high of 11,738 and saw some selling from those levels.
  • Bulls  tried to break The all time high again.
  • But as soon as prices came near to 11,700. Bulls did become weak and bears kicked in .
  • The index rallied downwards almost vertically till the levels of 11400.
  • There was some short covering which was seen on those levels.
  • The prices again rallied from 11,400 till 11,600.
  • The prices then dropped and made a new low at 11,250.
  • The market has recovered from the lows of 11,250.

Currently the Trade  setup for nifty 50 is still looking strong. However Bank nifty index is looking weak and few major heavyweights of the index are also weak. Adding to the weakness are weak global Markets. I would like to wait for the next candle to form before i take up any trade in nifty 50. Although the view sill remains Bearish. Let’s see how market spans out in the Next Candle. I would not be surprised if the index forms a Bearish kicker pattern or opens with a gap.

Read more about Bearish Kicker over here.

Bank nifty

Bearish Setup for Bank nifty
Four Hour Chart Of Bank nifty.

Now we will analyse the Trade  setup.

  • Bank Nifty  was in an uptrend as the Market was making newer highs and newer lows from 26,000.
  • Bulls Tried to break the level of  28,400 thrice.
  • The index then starts to make lower highs and lower lows.
  • The Markets start to fall vertically and breaks important support levels of 27,300.

Now let us analyse the candle at Blue arrow mark.

  • The index has recovered  form the lows of 26,600.
  • A candle prior to the Marked Candle.
  • We can see a complete showcase of strength form the bulls.
  • As the Market opens with a Gap or a window.
  • A gap or window represents a zone where no trading has occurred .
  • The spinning top candle after such a outrageous bull candle tells us that the sellers are not dead.
  • They are looking to make a comeback.

Read more about spinning tops over here.

Now the spinning top appears at a position  which could possibly look like a new lower high for the market. Which Makes the Trade Setup Bearish. The heavyweights of the index are also weak . This increases the chances of appearance of Bearish Kicker Candle. Let’s us see how the market spans out.

Strong Stock in Nifty 50

We will Look at Stocks which are in a Bullish Trade setup. These should be the stocks which you should avoid to short even on intra day basis.

Bharti Airtel Ltd

 

Bullish Trade Setup For Bharti Airtel.
Four Hour Chart Of Bharti Airtel Ltd.

Now we will analyse the  Trade setup.

  • Bharti Airtel has been in an uptrend from the levels of 332.00
  • It started make Higher highs and higher  lows form those levels at the bottom.
  • It eventually topped out near 400
  • There was some selling form the sellers at the levels of 400.
  • The Markets made a newer “Higher low” at 364.
  • The Markets stayed in a range for almost two weeks.
  • Bulls Successfully defended the levels of 364.
  • They never made a newer low .
  • Bulls kicked in at the bottom and they tried to break the range at the top.
  • But they couldn’t break it and sellers kicked in.
  • But this time prices did not go all the way till 364.
  • There was some buying at the bottom
  • Markets Break through the range and rally hard.
  • But they were unable to break the previous high of 400.
  • some more selling kicks in and it makes a new higher low when compared to it’s previous low.
  • The markets Rally hard again.

Markets at the Blue Candle is a classical Bullish marubozu candle which signals that the bulls are strong. Any Trade Setup on Short side should be avoided in this stock even on Intra day  Basis.

Read more about Bullish marubozu candles over here.

Weak Stock in Nifty 50

Reliance Industries Ltd

Bearish Trade Setup for Hdfc Bank
Four Hour Chart Of Hdfc Bank.

Now we will analyse the  Trade setup.

  • Hdfc Bank has been in an  downtrend from the levels of 2,200.
  • It has been making Lower highs and Lower lows.
  • The markets have broken their previous long term lows of 1,990.
  • Bears are very strong.
  • There is a formation of Bearish Marubozu.
  • The markets have recovered from the lows of 1,990.
  • But the appearance of a Bearish Marubozu signals weakness ahead

Markets at the Blue Candle is a classical Bearish marubozu candle which signals that the bears are strong. Any Trade Setup on long  side should be avoided in this stock even on Intra day  Basis. Hdfc Bank is a major heavyweight of both the Nifty and Bank nifty indices. Since Hdfc bank is looking weak , A long trade o on the Bank nifty index should also be avoided.

Conclusion

After Going through the charts i would recommend a trade Setup for short side on the bank nifty index. A neutral view for the Nifty50 Index . I will update this post tomorrow for the results.

Please Check out our “Disclaimer” Policy Before going forward. You Can check the disclaimer policy over here.

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