INSIDE CANDLE FORMATION 


What is an inside candle?

Let to make the explanation very simple. If the current candle's body and wick is within the range of the previous candle, then it is called as inside candle.

Trading based on Inside candle has a high probability of success though very simple. 

If the upper level is crossed, we need to go long. If the lower level is crossed, we need to go short.

Of course with a STOP LOSS!!

Often trading is simple, We try to make it complicated!


WHAT TODAY?

Today, it is an inside candle formation in both Nifty and Banknifty, though the space is more with Banknifty on the lower side. Thus i prefer BNF.


How I am planning?

If the upper level is crossed , in case of Nifty 17100, then we can expect a momentum of atleast 100 points.

If the lower level is crossed, 16860, then a momentum of another 100 points on the downside can be expected.

If the upper level is crossed in Banknifty i.e 38600, i would expect a run up till 39k

If the lower level is crossed, i.e 38000, then i would expect a drag till 37400.


What if tomorrow is a good bullish close?

If tomorrow, the markets close the day in a strong green candle, it could be considered as W pattern in the daily charts, indicating a further rally on the upside.

If tomorrow, the markets close significantly in the red, then the selling could continue further implying that the Pullback was just a temporary one.

What are your opinion on this analysis? 

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