Island reversal is a powerful trend reversal formation. But what did you mean by “It signals in a pullback rally thatn Nifty when approaching the cliff” ?.
Please explain at your leisure.
regards,
Sunil
HI sunil
I meant, if this pattern is formed when Nifty is movingup with new highs on a strong trend will have a great negative effect, whereas we are just in a pullback rally and unable to conquer even the earlier high of 5400.
The efficacy of this pattern will be known sooner, as it has formed in a weak trend.
Trust this clarifies your doubt.
C T R
Sir,
I R when formed in an up trend,it is trend reversal most of the times.
In this case,NF is in an up trend as the previous pivot High has been crossed after forming PL.It may be a pull back in a D Trend. Hence,the result should be bearish as proved to day.
Kindly clarify for our benift ,yr explanation of pull back rally which is confusing atleast to me.
But, the identification of the chart by u is excellent as usual.
By the way ,is Reliance infra IR pattern today in cash?
Rel Infra,I R yesterday in cash & not today as mentioned.
It was in up trend & the result was bearish today.
RR sir,personally i had learnt from u lot of technicals in my association with u in the last four years & many people had benifited as u were always willing to share yr knowledge.
Thank you very much.
Dear sir
I explain once again about this Island reversal.
Island reversal is a powerful signal when it is formed in a very strong trend either on upside or at panic bottom. In this particular situation, Nifty has already fallen by over 11% from its intermittant high of 5398 and its trying to pullback from the bottom it had hit at 4786. In the process of this correction from high, Nifty is making lower highs and lower lows. Right now market has only pulled back from the fall, and now you find this Island reversal signal.
We right now recognise this as reversal pattern but the moot question is about its efficacy, since it has formed in a weak trend and should not be deceptive.
I put a note in the chart, had this pattern was formed when Nifty approaching the cliff, then reversal would have been very sharper with a very high probable short trade.
In a pullback rally, these kind of reversal patterns are prone to falter when it appears in a weak trend.
Its similar to H & S pattern forming after a prolonged uptrend. Its a powerful reversal pattern at the top and not after falling substantially from the top. After a substantial fall, if H & S is formed its never recognised as original reversal pattern, rather it is defined as Triangle.
If you require further clarification, please fire your questions to me.
Best regards
C T RAMESH RAJA
Thank you
Sir, your view on weekly inverse H&S IN nifty. chart.?
Mr Rangarajan
Now you would have understood how this signal can fail. Now its trading at 5077 and Island has sunk.
This is what I explained in the chart, that these kind of signals in a weak trend will falter.
C T R
Mr Manan Shah
Can you send me weekly Nifty chart showing inverse H & S ?
My mail id is in contact page of this site.
C T R
thank you RR sir. The deceptiveness is clear now. So also the IR in a pull back rally
Dear RR Sir,
Hats off to you, not for identifying the Island Reversal, but for warning that this may not work as it has occurred not at the top.
Once again it shows that all can read TA, but only few can read it correctly.
Sir,
Island reversal is a powerful trend reversal formation. But what did you mean by “It signals in a pullback rally thatn Nifty when approaching the cliff” ?.
Please explain at your leisure.
regards,
Sunil
HI sunil
I meant, if this pattern is formed when Nifty is movingup with new highs on a strong trend will have a great negative effect, whereas we are just in a pullback rally and unable to conquer even the earlier high of 5400.
The efficacy of this pattern will be known sooner, as it has formed in a weak trend.
Trust this clarifies your doubt.
C T R
Sir,
I R when formed in an up trend,it is trend reversal most of the times.
In this case,NF is in an up trend as the previous pivot High has been crossed after forming PL.It may be a pull back in a D Trend. Hence,the result should be bearish as proved to day.
Kindly clarify for our benift ,yr explanation of pull back rally which is confusing atleast to me.
But, the identification of the chart by u is excellent as usual.
By the way ,is Reliance infra IR pattern today in cash?
Rel Infra,I R yesterday in cash & not today as mentioned.
It was in up trend & the result was bearish today.
RR sir,personally i had learnt from u lot of technicals in my association with u in the last four years & many people had benifited as u were always willing to share yr knowledge.
Thank you very much.
Dear sir
I explain once again about this Island reversal.
Island reversal is a powerful signal when it is formed in a very strong trend either on upside or at panic bottom. In this particular situation, Nifty has already fallen by over 11% from its intermittant high of 5398 and its trying to pullback from the bottom it had hit at 4786. In the process of this correction from high, Nifty is making lower highs and lower lows. Right now market has only pulled back from the fall, and now you find this Island reversal signal.
We right now recognise this as reversal pattern but the moot question is about its efficacy, since it has formed in a weak trend and should not be deceptive.
I put a note in the chart, had this pattern was formed when Nifty approaching the cliff, then reversal would have been very sharper with a very high probable short trade.
In a pullback rally, these kind of reversal patterns are prone to falter when it appears in a weak trend.
Its similar to H & S pattern forming after a prolonged uptrend. Its a powerful reversal pattern at the top and not after falling substantially from the top. After a substantial fall, if H & S is formed its never recognised as original reversal pattern, rather it is defined as Triangle.
If you require further clarification, please fire your questions to me.
Best regards
C T RAMESH RAJA
Thank you
Sir, your view on weekly inverse H&S IN nifty. chart.?
Mr Rangarajan
Now you would have understood how this signal can fail. Now its trading at 5077 and Island has sunk.
This is what I explained in the chart, that these kind of signals in a weak trend will falter.
C T R
Mr Manan Shah
Can you send me weekly Nifty chart showing inverse H & S ?
My mail id is in contact page of this site.
C T R
thank you RR sir. The deceptiveness is clear now. So also the IR in a pull back rally
Dear RR Sir,
Hats off to you, not for identifying the Island Reversal, but for warning that this may not work as it has occurred not at the top.
Once again it shows that all can read TA, but only few can read it correctly.
regards,
Sunil