Banknifty Trading View – (8.7.2023) – Best of trend following

BankNifty trading view refers to the analysis and observation of the Bank Nifty index, which represents the performance of the banking sector in India. By studying the bank nifty trading view, individuals can make informed decisions about their trading strategies and take advantage of potential opportunities in the market. Understanding the dynamics of bank nifty trading view is essential for anyone interested in navigating the world of Indian banking stocks. Lets understand the current Banknifty market structure on chart.

Let us check price action on different time frames like weekly , daily and hourly and see how we can make predictions of the future price moves in the banknifty share prices. Trend following traders may practice this multi time frame analysis approach to making their trading decisions. Trend change always takes place in a lower time frame , that we will see in this analysis.

1. Market Structure – Banknifty Trading View-Weekly TF ( Investors)

Banknifty trading view

In above weekly chart of bank nifty, we can see the trend is up. If we connect consecutive highs and lows , we can see formation of a rising wedge on an uptrend. At the top of the chart it is seen that a doji is formed which shows a bearish tone. At all time high phase , on weekly chart , it is seen that buyers are loosing their command and sellers have stepped in .

But since this is the higher timeframe ( weekly) , traders should watch for confirmation for their view. We are doing analysis on weekly TF , and we can see that on this TF , the current trend is up. Because market is forming higher highs and higher lows formation. So , for investors , should wait for the confirmation for the priceaction around this trendline. Lets see structure on one lower TF – Daily.

2. Market Structure – Banknifty Trading View-Daily TF ( Swing Traders)

Banknifty daily TF

We can see in above daily chart of banknifty , Trend is up. Current declines on prices may be a pullback towards the previous swing high support. Swing traders should watch for any bullish candle stick patterns ( pinbar , bullish engulf etc) or bullish priceaction pattern ( double bottom , piercing line etc.) on lower timeframe to take long entry. Prices reversed from the trendline on weekly TF. When we are doing analysis on daily timeframe chart , for entry , step down to lower timeframe to take entry. So On daily timeframe we can see trend is up and prices showing small declines . To stay with the trend swing traders should look for bullish patterns on lower timeframes like 4 hour or 1 hour.

3. Market Structure – Banknifty Trading View-Hourly TF ( Swing Traders / Day traders)

Above image shows hourly chart on bank nifty spot . Prices declining from trendline on weekly chart .( see weekly chart above) .Prices formed a new low after 1-2-3 formation or after making lower high . We see a small pullback from 44890 levels also. So 44890 is the new low on hourly TF. If that low is breaks swing traders/ day traders should take short entry . Stoploss can be placed at nearest swing high ( 45100 ) or recent lower high ( 45400). Target can be placed at previous swing high on daily chart ( 44400).

4 Conclusion

checking the Bank Nifty Trading View , we can see on weekly and daily chart it is bullish and should check opportunities to take long entries. Investers should track these higher timeframe charts. Swing traders and day traders should see lower timeframe charts on hourly . Which shows some weakness and should take short entries as per the said entry , stoploss and target levels.

3 thoughts on “Banknifty Trading View – (8.7.2023) – Best of trend following

  1. Ashish Naik

    In any Price Action study there are two main components, One is Price behaviour or Pattern formation , The other one is Volume at important levels. Throw some light on Volume Profile too…
    Overall very much informative, Multi Time Frame analysis helps significantly iimprove probability.

    Reply
  2. Pingback: Best Indicator For Swing Trading - 1 - tradingstocksprofitresearch

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