The Index has made a descending pattern at the top.

Descending pattern breakout on upside has a excellent return compared to downside, Failure rate is less on the upside compare to downside, Throwback and pullback are common in the pattern, Volume during the pattern is not so relevant but after breakout it is.

In index we don't get proper volume confirmation we have to understand by the candles. If a gap is seen during the breakout we can assume that the volume is going to be in a favor of the breakout.

After the breakout just have a good look at the RSI if divergence are seen avoid the breakout wait for the throwback/pullback and then enter. If the breakout is on the upside have a good look at the MACD, if MACD is above 4 can expect a good move on the upside, if not enter once the MACD is above 4.

If the Index breaks on the downside make sure the MACD is crossing from above if not its trading below -3

Opportunity ahead

Aug 05 2021

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