The Index has made an Ascending Pattern on a 15 min time frame. Speciality of the triangle pattern is that the formation doesn't matter where it's forming, unlike candlestick. There is always a supportive analysis if the formation is at the top or bottom.

In this case the formation is at Top, majority of the time patterns forming at Top or Bottom are Correction Patterns. Here we can expect some correction in the index. Ascending Triangle breakout downside has a good return compared to upside.

Failure rate and pullback are common. A shortfall was seen in the pattern and breakout was seen on the downside, can expect the move to continue, any pullback can be an opportunity for selling the index.

MACD : MACD has formed a symmetric pattern and breakout from the pattern is seen, crossover is also seen just above 0 and now its trading below 0. Macd is respecting the price move and is indicating strong sell.

RSI : RSI has formed a diamond pattern, usually this pattern is seen on the charts and avoided on indicators but after some backtesting it has been observed that it  works good on indicators as well, Pullback/throwback are common.

Sell

Aug 03 2021

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