Nifty 50 IndexLong
Hormonics Reversal PRZ Zone on Up side 23316-23265 Targer 24020
The Harmonic Reversal Potential Reversal Zone (PRZ) on the upside between 23316-23265 indicates a specific area where the price is expected to react or reverse based on harmonic trading principles. Here's how to interpret and potentially trade this zone:
1. What Does This PRZ Mean?
The zone 23316-23265 is calculated using Fibonacci retracements and extensions from a harmonic pattern.
It suggests a tight range where the price may reverse direction on the upside.
2. Why Is It a Reversal Zone?
This zone represents the completion point (D) of a harmonic pattern (e.g., Gartley, Bat, Crab, Butterfly).
Convergence of Fibonacci levels within this range increases the likelihood of reversal or strong price reaction.
3. How to Trade the PRZ?
(a) Wait for Confirmation:
Do not enter trades immediately. Look for price action confirmation:
Reversal candlestick patterns (e.g., Shooting Star, Bearish Engulfing).
Indicators showing divergence (e.g., RSI, MACD).
Trendline breaks or volume spikes.
(b) Risk Management:
Stop Loss: Place a stop loss slightly above 23316 (if expecting a reversal downwards).
Entry: Enter trades when price action confirms rejection from the PRZ.
Take Profit: Use Fibonacci levels or key support zones below 23265.
(c) Scenario Analysis:
If Price Breaks the PRZ on the Upside:
Treat it as invalidation of the harmonic pattern.
Look for potential continuation above 23316.
If Price Reacts Within the Zone:
Observe for strong rejections or consolidations before entering a short trade.
4. Visual Representation
The PRZ between 23316 and 23265 forms the critical price range where:
The harmonic pattern completes.
Fibonacci levels overlap, creating a high-probability reaction zone.
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