Technical Analysis Of Bank Nifty Using Chart Patterns

One of the most important aspect of learning intraday trading or swing trading, is to be able to do technical analysis of any instrument, that would include understanding candlestick patterns. Candlestick helps in understanding the market participant’s behavior. What is most fascinating, that how looking at candlestick patterns one can identify what sentiments are prevailing in the market. In our sentiment engine, this is what we have leveraged. As a part of sentiments decoder algorithms we detect these patterns algorithmically and then surface insight based on chart patterns and technical analysis.

The most common patterns that we have decoded using our algorithms are mentioned below. Just to make this learning more practically let’s also take real case by doing Bank Nifty Analysis where we would try to read Bank Nifty Chart Patterns and understand them well. Below for explanation purpose we have concentrated on Bank Nifty only, however conceptually the technical analysis would stay same.

Technical Analysis: Bank Nifty Chart Patterns

Doji Pattern

In a Doji pattern typically open is near to close and it has wicks on both side. Typically these wick could be of same or similar length. What it means market is indecisive. If it appears after a trend that means there is a good possibility of reversal or may continue the trend.

Bank Nifty Technical Analysis using Candlestick patterns
Bank Nifty Chart Pattern – Engulfing


This pattern as name suggest is indicating bullishness or bearishness. Now, in this candlestick pattern a big candle body would engulf previous candle completely. If green candle engulfs previous red candle then Bullish move possibility, and if red candle engulfs previous green candle then Bearish move possibility.

Hammer & Shooting Star

In this pattern typically there is a small real body and long wick. If Hammer found after potential bullish pattern then possibility of reversal. Similarly if shooting star is found after falling market then possibility of bullish reversal.

Bank Nifty Chart Pattern – Bank Nifty Technical Analysis
Bank Nifty Chart Pattern – Bank Nifty Technical Analysis – Evening Star Candlestick Pattern

Morning & Evening Star

This is a typical three candlesticks pattern that indicates bullish trend reversal. In a bullish reversal Its construction is of a long green candle, then an indecision Doji candle of any color and then big red candle. Reverse is true for Morning star having a big red candle in a falling trend, then a Doji and then Big green candle in reverse direction.

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