Friday, 1 June 2018

Nifty Future 01062018

Today's post in two parts.  First part for morning session and another for post noon session. 

1. Morning session:

It opened within previous day's range and attempted to go higher, but could not break PDC after couple of attempts.  This gave a nice BOF of PDC setup to short.  Another setup was BPB of BRN but it failed.  Why did it fail?  Have a look at second half of the day chart below.

2.  Second half of the day:

Once BPB of BRN failed, I suspected channel formation or a barbed wire pattern.  As you can see in the chart above, prices not only formed a barbed wire around BRN but also formed a channel.  Once this channel appeared clear, one could have traded as marked at the extremes of channel.  Both these trades at channel extremes had a potential to make 25 + 25 points.

I tweeted about this channel formation.  Here is that tweet.


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