Banknifty could go lower from here

9 Jun 2023

On the weekly timeframe chart is developing a double top higher high major trend reversal pattern (according to price action Al'brooks Method)
Kindly refer more about Major trend reversals from original source I'll give out the basics here.

The following conditions are required for a MTR to set up

• 1. Trending market - here the uptrend we see at beginning left hand side of the chart
  
• 2. A significant pullback - We have a pullback of ~ <50% of the up move here. The pullback has been able to put a couple of bars completely below the EMA also know as EMA gap bars that indicate strength of bears.
  
• 3. Trend resumption & Test of old trend's extreme - After the pullback we see a trend resumption that test the old high and is a little higher (thus higher high & a double top with previous high)
  

All patterns must be observed along with the following
Previous context.
Phase of the market cycle (Breakout, channel, trading range).
Strength of buyers and sellers.

9 Jun 2023

Nota

*TBTL -- Ten bars and two legs - thats the MINIMUM move that can be expected from a successful MTR

9 Jun 2023

Nota

Also Major does not imply a market crash or a very huge move, It just implies according to the source a significant change in market cycle from a trend to sideways to down price action that creates a bigger trading range which includes the previous up move / trend .

Thus changing the market cycle from Trending to Two way (Ranges) post which market makes new decisions and market cycle resumes to a new phase after price discovery.