Nifty 50–1H Chart Analysis Using Volume Profile & Gann High Low1. 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
