Wednesday Trading strategy for the traders.

There is something important to check out there in the nifty chart pattern, i know most of you have recognized yesterday's closing pattern and the clean RED signal after a bullish trend . As i had also said in my previous post regarding the market major support levels so it holds good at this time and still i am going to update new support levels which are formed in the uptrends. 

                                 But let me show you the important chart pattern which is formed rarely and if formed wont be accurate to take decision- HANGING MAN & HANGING MAN REVERSAL lets take a look at the basic formation and the pattern looks like and what signal it reflects.

HAMMER 

If Hammers is formed in either uptrend or in down trend its clear with the BEARISH signal.

When Hammer is formed after certain previous consecutive bullish candels its clear and sure of BEARISH signal in the markets (pattern is showed below)-

HANGING MAN REVERSAL

Now let us see in the EOD Nifty Charts.

 Trading Strategy on the bearish signal-

• If the market opens in the negative and stays below the level of S 1 = 7620 (support level) and stays there for more than 20 mins and breaks that its the conformation for the sustaining bearish mode.
• the next important support level is S 2 = 7580 there lies strong support if it is penetrated with huge volumes the no more conformation its clear for the time to SHORT in the market and mint money.
• finally this support level S 3 = 7495 its a bounce back ribbon here markets can change the face by taking the reversal and its confirmed only with the previous day market closing chart pattern. 

Happy Trading...!!!