Thread by @PAVLeader

#BANKNIFTY Future bar by bar commentary for today's move for learning purpose.

1/n

After a powerful reversal with massive volume & wide range bar yesterday #BNF closed above EMA21 & has made higher higher on 15M candles & didnt break the low of any previous candle.

2/n

This shows the strength in the move & shows the strong momentum upside. After so many days of downfall, bears were shorting on every rise & this was a perfect "Bear Trap" setup (yesterday it broke the day low only to reverse).

3/n

At yesterday close selling profit booking was witnessed but today's open didn't break the low of that candle as well. It shows we still have some steam left for upside.

Points below are aligned with the numbers marked on the chart for easy understanding -

4/n

1. Opening bar, testing yesterday's low but reversed and gave a strong close towards the high. Shows strength

5/n

2. Next bar couldn't gave a follow through for the strength seen in 1st bar. Closed in the middle. Shows indecision. Next 3 bars also were weak with narrow range. Shows lack of selling. If bar 2 had sellers then next 3 bars should show fall.

6/n

3. This bar showed some strength. Positive close, more volume than last 3 bars but next bar shows immediate selling. It means on every rise, selling was witnessed. Weakness in the background. While next bar was positive bar but it had a upper wick which shows some selling

7/n
pressure. Time to be cautious in longs as we are also approaching previous highs/supply zone.
4. Bar size narrow with upper wick & higher volume than last 7-8 bars. Means definite selling. If this volume was buy volume then we shouldn't see the upper wick.

8/n

5. This bar didn't break the high of bar 4 and closed lower. Shows further weakness.
6. Broke the low of 4 & 5 and closed in the middle. Weak bar & got some support at the lower end. Bulls tried to defend the lows. Next bar inside bar shows indecision.

9/n

7. Strong fall breaking low of previous 2 bars with good volume. Got lower wick which shows bulls are trying to find support on every fall.
8. Another weak bar with higher volume, close in the middle. Took support at EMA21 & didnt close below it.

10/n
Lets see if this is a successful pullback. Next bar is inside bar with narrow spread and low volume. High of IB is important now.
9. Bulls made another attempt to go higher & break recent highs. Wide range bar with relatively smaller volume (lower than EMA21 support bar).

11/n
Efforts doesn't match results. Upper wick shows some selling came near the highs. Time to watch the highs of this bar.
10. Massive rejection, bears got active & bulls got weaker. Wide range bar closing below EMA21.

12/12
This possibly disheartened the bulls to the core & they gave up. GAME OVER & now price should fall down at its own weight. Hope this helps learning the price action closely.

Keep learning, keep growing friends 👍👍👍

#LearnWithPAL