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Oversold /Overbought

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 In oversold- on any time frame. Sentiment are weak. Fear. Market in doldrums. mindset. Feeling of unlikely to recover - deeper deeper levels- pessimistic mindset develops In Oversold drag continues down. Later develop positive divergence and still some drag down till reversal is not witnessed by lower top cross over Oversold on hourly oversold happens frequently. Oversold Daily may be once in 2-3 months Oversold and Oversold Exit becomes opportunity. In Oversold good to get ETF or index based stock. In Oversold Exit good for trading pullback or new trend in that time frame Overbought is euphoria and over optimism. Generally, lead to fall towards oversold. 

SENSEX

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BNF Channel View

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NF BY_MAY'27

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 https://in.tradingview.com/chart/NIFTY1!/3WxwBOKy-NIFTY-Potential/3WxwBOKy If it is A-B-C or 1-2-3-4-5 from March 20 low, NF cold be heading towards 35K by May'27 with volatility and intermediate structure of troughs and peaks 26K by OCT'24 Possible 35K between OCT'25-MAY'27 Intermediate structure can change on its progress to higher levels. Therefore, daily and weekly Oversold on RSI whenever happens could be opportunity.

Near term to Short Term Negative Divergences

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  NIFTY MICRO CAP 250. at critical point Currently 18900 is critical by the end of the week it has been tested fall and close today or by end of the week can extend the correction to 16814 cmp-19097 Daily chart RSI nearing oversold Dynamic Trend and Lagging Trend currently down therefore support is under pressure. hourly chart of NIFTY MICROCAP 250 in oversold NIFTY MICROCAP 250 morning high crossed on closing time then could be pullback resuming for micro-cap. under performance seen in micro-cap. small cap market RS dropped sharply. if the recovery has to happen then now in 1-2 days for scap  NIFTY TOTAL MARKET INDEX pattern on hourly not encouraging could be bearish breakdown. recovery from low seen in NIFTY TOTAL MARKET INDEX. RISING WEDGE A BEARISH PATTERN only pullback surely objective is to book profits apart from intra-day trading of up and down or 1-2 day trading of up and down Negative Divergence also well in place for NIFTY TOTAL MARKET INDEX

Averages Sync with Breakout

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  Averages Sync for UP trend on daily chart. Attempt for breakout from the wider sideways range denoted by the purple lines. Volatility will be a function of lower time frame in comparison to the chart time frame which we are watching. since breakout does not happen in vertical line most of the time. Therefore, when we look at the lower time frame chart it will be associated with oversold and overbought to understand the volatility if higher trend breakout is visible then look for a point from where it can fail the support and trading higher bottom Our rules of open will always help to be in track with market and in line with market

Candles, RSI, MACD

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  Inverted Hammer Dark Cloud Cover RSI Overbought RSI below its Average MACD Below it Average What can save it from here on is immediate breakout and close above the peak. As long as peak is not crossed expect correction. Correction can be in terms of time and price. Time Correction will exhibit by Volatility along with development of Range. The range at times can get into compression mode. Correction in terms of Price is associated with retracement to the last corresponding rise test the Fib-retracement levels of the rise.