Nifty Gann Square of 9 Targets with Megaphone pattern!Feb 03, 2021
Nifty has reversed sharply post the Budget. But see Gann levels that worked so extremely well in providing support and resistance to prices.
See the below chart that shows classic price action area along with an Expanding pattern. The low created just before the Budget day was near to the Gann support of 13748 levels.
Nifty Gann square of 9 & Megaphone pattern -
The above chart shows how precisely Nifty has been moving within the price action areas as marked by Gann square of 9. Prices have been finding support and resistance between the levels marked on the chart. The earlier high that Nifty made was near 14753 and the Gann level marked was at 14702 in our monthly research. Remember these levels give the area or the zone of reversals and can never be exact pinpoint. Post reversal prices broke 14221 and then sharply moved towards the lower Gann level near 13748 marked on the chart.
The recent rise has now taken out 14702 on upside decisively and as per price action levels derived using Gann method the next zone to look at is near 15190. We are not suggesting prices will go there but if at all it moves there we know the probable area of reversal or a pause. This way one can combine simply Gann methods along with the price pattern structure.
Megaphone pattern – We can see a contracting and an Expanding pattern from the lows that is in Neo wave a running Diametric pattern. This will be discussed in much detail in upcoming “Monthly research” and “The Financial wave short term update”
The above research shows how we can combine simple methods and derive the broader context of the market and this when combined with signalling system can give a classic entry and exit strategy.
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