NIFTY FORMING A GARTLEY PATTERN

Posted along side  is a chart of Nifty as it unfolds. It seems that it is making a Gartley pattern. So far symmetry is good. Should it take support at 5530-5560 area and then reverses then Nifty can do 6525-6550.

Gartley is a complex price pattern based on Fibonacci numbers/ratios. It is used to determine buy and sell signals by measuring price retracements of a stock's up and down movement in stock price.

X - 5349
A - 6339
B - 5690
C - 6181
D - ??? ( 5532, 5557, 5560)

X-A = 990
A-B = 649
B-C = 491
C-D = ??? ( 649, 624 )

A-B = .618 OF XA
B-C = .786 OF A-B (almost)

C-D min has to be 1.272% of B-C (624) and max it can be 2.618 of B-C (1285) which can take it to 4895 but that will negate the gartley pattern in totality,  also C-D cannot be more than .786 of X-A and less than .618 of X-A,  hence I presume Nifty to stop some where 5530-5560 range for this pattern.

Today Nifty closed at 5696.50. Posted for academic purposes only. 

Happy Trading !

RainMaker