On a daily candle of Nifty, it looks like a Hanging man. However a follow up confirmation is necessary to confirm this. If this is confirmed then we have made a short term top and the next leg of bearishness in Nifty will emerge. If it is confirmed then we we may observe more violent moves ahead.
Hanging man will get invalidated when the price moves past the high of the hanging man candle. In such a case this may imply that it was a runaway gap.
Confirmation :
- The next bar opens under hanging man's real body. The more the price gap between the hanging man's real body and the next bar open price, the more probability that hanging man will form the high.
- Close price of the next bar's black candle is under the hanging man's close price
More details about Hanging man can be viewed from here.
daily nifty analysis post kyon nahi karte?
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