Nifty 50–1H Chart Analysis Using Volume Profile & Gann High Low

104
1. Key Observations (Volume & Gann Focused)

a) Volume Profile Insights

POC (Recent Session): 23,338.85 – strong volume concentration suggesting a key decision level.

POC (Previous Structure): 22,478.95 – deep value zone indicating prior accumulation and demand interest.

Value Area High (VAH): Approx. 23,700 – marked rejection zone; price failed to sustain above.

Value Area Low (VAL): Near 22,800 – critical demand support zone based on historical value range.

b) Gann High-Low Signals

Gann Pivot High: 23,800 zone – aligns with current range high; failed breakout attempt signals potential reversal.

Gann Pivot Low: Around 22,400 – multiple tests show significant buyer defense, acting as strong base.

c) Liquidity Zones

Liquidity Trap Above 23,700–23,800: Fake breakout potential, possible stop-run for late buyers.

Liquidity Pool Below 22,800–22,400: Where institutions likely absorbed selling pressure during consolidation.

d) Volume-Based Swing Highs/Lows

Volume Swing High: 23,700–23,800 – top volume spike and seller reaction.

Volume Swing Low: 22,478.95 – high volume area supporting prior reversal, now key demand level.

2. Support & Resistance Levels

Support Levels (Volume-Based)

23,338.85 (Recent POC – watch for retest)

22,800 (VAL – volume support & midpoint consolidation)

22,478.95 (POC from prior zone – major demand)

Resistance Levels (Gann-Based)

23,700–23,800 (Range high + Gann pivot)

23,600 (upper channel boundary – supply zone)

3. Chart Patterns & Market Structure

a) Overall Trend Direction

Bullish to Neutral – recent sharp rally has entered a distribution phase near highs, with weakening momentum.

Potential transition into range-bound behavior or pullback toward lower POC zones.

b) Notable Structural Patterns

Rising Wedge/Channel Breakdown: Price beginning to pull back from upper channel.

Fakeout Above Range High: Failure to sustain above 23,800 confirms bearish intent.

Symmetrical Channel Forming: Indicates possible corrective move ahead.

4. Trade Setup & Risk Management

a) Bullish Setup

Entry Zone: 23,200–23,300 (POC retest + prior demand)

Target 1 (T1): 23,600 (upper consolidation zone)

Target 2 (T2): 23,800 (range high retest)

Stop Loss (SL): 23,050 (below channel midline)

Risk-Reward: ~1:2.5

Position Size: Risk 1–2% of capital

b) Bearish Setup

Entry Zone: 23,600–23,700 (supply zone + failed breakout)

Target 1 (T1): 22,800 (VAL and lower boundary)

Stop Loss (SL): 23,850 (above fakeout high)

Risk-Reward: ~1:2

Position Size: Risk 1–2% of capital

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.