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Reversal

Page history last edited by NimblrTA 2 years, 2 months ago

Reversal confirmation means

1) 2 BH>50%CH are formed

 

 

 

Importance of Two Consecutive BH>50%CH Strength Star Candles for reversal or breakouts. So no weakness observed

 

 

 

 

Reversal confirmation with 2BH>50%CH candle on D and BH>50%CH > prev W high on W

 

 

Bottom Formation

Use Reversal conditions with CCI>100 to get Bottom Confirmation + Momentum

 

Bottom 1280 Confirmation was completed with BO1 + BO2 on 10Nov17. Moment that was done ... Stock has spurted from 1536 to 1850

 

Bottom formed on Daily Chart !

Awaited bottom confirmation

 

Saregama CMP 764.95, Need a BH>50%CH Candle with a High and Close above 790 on Daily Chart for a rise to 915

 

 

BIOCON Case

Biocon CMP 659.95 Any Close above 678 with a Breakout (i.e. BH>50%CH) Candle, rise to 761 1mth SL 589 26May18 22:54

 

BIOCON Reality

Biocon CMP 649.00 ... has not managed to close above 678 and there has been no Breakout too ! In addition there occurs two consecutive BH>50%CH down side strength candles which is a confirmation of Top ATH 683.00 for a few weeks till momentum picks up again. 1Jun18 23;55

 

LUXIND Weekly Top Confirmation

Summary:

Time for exit
2 red strength candles confirms the top 2094
Momentum drops below 100
Next could land towards 1550
CCI (D) reaches sell mode

 

Correction:

LUX Industries ... SL below the top Indecision Non-breakout Candle would have been perfect exit. It's the reason why at the end of the month one shd check CCI 34 Mthly < 100 and watch the switch of strength candle direction.

 

Re-Analysis in Depth

Zooming to Daily charts, this is what you mean. Please correct me in my understanding. Co-relating D/W charts

Daily Charts

Daily chart ... the same Ambulance sign look-alike candle with ATH 2094 and Low 2067.95 less approx. 2% = 2026 (SL) on daily time frame.

 

Weekly Charts

Weekly chart ....the very top small tiny Ambulance sign look-alike candle - market sold heavily when crossed below the low 2035.

 

Qn: How would we interpret 2 red strength candles on D charts only (BIOCON) and W charts (LUXIIND). Does it mean for LUXIND the damage is major and is now spread from D to W timeframe confirming the weekly top while BIOCON has damage on D charts as of now?

 

Ans: True, exactly as you hv interpreted unless in the same time period in which the fall occurs the prices climb back to where they were.

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