Failure of Bullish Pattern

 

Nifty 9/12/2022 

In this post, we learn about the failure of multiple bullish patterns in one single chart at one perfect spot.


1- Price is making Higher high and at 20 EMA it makes an engulfing Pattern. It is also an Outside reversal setup. All Parameters are fulfilled for a bullish trade such as the formation of engulfing bar at support, the previous day's high, the bar is closed above the prior bar high and it is 5 - 25 % larger than the average bar.
Interpretation - Bullish




1.1 - If we change the time frame to 15 Min, we can see a hammer candle or wick reversal setup at the resistance level of past many candles and the probability is to act as support now. (Look at the first candle in the circle, it is also supporting the second candle and telling us the market is going to be bullish from this point)
Interpretation - Bullish

2 - 20 and 200 EMA crossover and first support at 20 EMA with engulfing Pattern. 
Interpretation - Bullish


3 - Closing of engulfing Bar is above the previous day's high and rejection coming from a near high of CPR with positive RTP.
Interpretation - Bullish

Conclusion - After multiple confirmations of the Price action trading pattern, this trade SL is still hit, which is low of engulfing bar. T
Learning - Always follows Positioning sizing and there is no holy grail.


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