🔍 Pattern Identified: Inverse Head & Shoulders (IHS)
We can see a classic IHS formation on the Nifty 50 Index (4H timeframe), which is a bullish reversal pattern.
📝 Key Observations:
✅ Prior Downtrend: A prolonged bearish move before the pattern formation.
✅ Left Shoulder: Initial low followed by a bounce.
✅ Head: A lower low, forming the bottom of the pattern.
✅ Right Shoulder: A higher low, signaling reduced bearish pressure.
✅ Neckline Resistance: Breakout above 23,500 could confirm the pattern.
📊 Potential Trading Plan (For Learning Purposes Only! Not Financial Advice)
🔹 Entry: Above neckline breakout (~23,500)
🔹 Target: Measured move projection (~24,500-24,700)
🔹 Stop-Loss: Below right shoulder (~22,750)
🔹 Risk-Reward: Should be favorable (minimum 1:2)
⚠️ Important Considerations:
🔹 Volume Confirmation: A breakout should have strong volume to be valid.
🔹 Retest Possibility: Price may retest neckline before moving higher.
🔹 Market Conditions: Always check global cues and sentiments before executing trades.
📢 Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. I am not a SEBI-registered analyst. Always do your own research and consult a qualified financial professional before making investment decisions. Trade responsibly! ✅
We can see a classic IHS formation on the Nifty 50 Index (4H timeframe), which is a bullish reversal pattern.
📝 Key Observations:
✅ Prior Downtrend: A prolonged bearish move before the pattern formation.
✅ Left Shoulder: Initial low followed by a bounce.
✅ Head: A lower low, forming the bottom of the pattern.
✅ Right Shoulder: A higher low, signaling reduced bearish pressure.
✅ Neckline Resistance: Breakout above 23,500 could confirm the pattern.
📊 Potential Trading Plan (For Learning Purposes Only! Not Financial Advice)
🔹 Entry: Above neckline breakout (~23,500)
🔹 Target: Measured move projection (~24,500-24,700)
🔹 Stop-Loss: Below right shoulder (~22,750)
🔹 Risk-Reward: Should be favorable (minimum 1:2)
⚠️ Important Considerations:
🔹 Volume Confirmation: A breakout should have strong volume to be valid.
🔹 Retest Possibility: Price may retest neckline before moving higher.
🔹 Market Conditions: Always check global cues and sentiments before executing trades.
📢 Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. I am not a SEBI-registered analyst. Always do your own research and consult a qualified financial professional before making investment decisions. Trade responsibly! ✅
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.