NSE:RELIANCE retains a bearish continuation thesis on the 4-hour chart, conditional on a rebound into 1237-1253 and rejection from that zone. The supplied reference price is 1182, so the setup depends on a pullback to the zone before any trade is considered.
The chart shows successive lower highs and lower lows, followed by a sharp decline through prior support. A brief consolidation around 1237-1253 also broke down, making that area a potential resistance zone on a revisit. The supplied bar calculation identifies it as the largest volume-profile shelf, accounting for 3.4% of the profile and supported by chart extremes.
Confirmation would require a test of 1237-1253, a bearish 4-hour close back below the zone, and follow-through below the rejection candle's low. Without that sequence, the setup remains unconfirmed. If confirmed, the first downside objective would be 1141, based on the 161.8% move projection; the second would be 1082, based on the 261.8% move projection.
A move to 1264, beyond the far boundary of the zone, would invalidate this bearish rejection thesis. Any subsequent setup would need a fresh assessment.
Position size would need to reflect the distance from the confirmed entry to 1264 and a predefined loss limit. The supplied reference risk-to-reward ratio to 1141 is 1:3.5; the actual ratio depends on the entry. ATR(14) is 14 per 4-hour candle, while the objectives lie 6.9 ATR and 11.1 ATR from the zone. These are extended projections requiring sustained follow-through, with partial risk reduction at the first objective a possible management approach.
The chart shows successive lower highs and lower lows, followed by a sharp decline through prior support. A brief consolidation around 1237-1253 also broke down, making that area a potential resistance zone on a revisit. The supplied bar calculation identifies it as the largest volume-profile shelf, accounting for 3.4% of the profile and supported by chart extremes.
Confirmation would require a test of 1237-1253, a bearish 4-hour close back below the zone, and follow-through below the rejection candle's low. Without that sequence, the setup remains unconfirmed. If confirmed, the first downside objective would be 1141, based on the 161.8% move projection; the second would be 1082, based on the 261.8% move projection.
A move to 1264, beyond the far boundary of the zone, would invalidate this bearish rejection thesis. Any subsequent setup would need a fresh assessment.
Position size would need to reflect the distance from the confirmed entry to 1264 and a predefined loss limit. The supplied reference risk-to-reward ratio to 1141 is 1:3.5; the actual ratio depends on the entry. ATR(14) is 14 per 4-hour candle, while the objectives lie 6.9 ATR and 11.1 ATR from the zone. These are extended projections requiring sustained follow-through, with partial risk reduction at the first objective a possible management approach.
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NO REDESIGNING
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✅RR 1k3, no deep drawdowns!
Free test drive using my link:
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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.
SIGNAL INDICATOR
NO REDESIGNING
✅Buy&Sell according to 7 strategies
✅Technical analysis according to 30+ parameters
✅WinRate of signals up to 75%
✅RR 1k3, no deep drawdowns!
Free test drive using my link:
👉midas-club.com/go/tla
NO REDESIGNING
✅Buy&Sell according to 7 strategies
✅Technical analysis according to 30+ parameters
✅WinRate of signals up to 75%
✅RR 1k3, no deep drawdowns!
Free test drive using my link:
👉midas-club.com/go/tla
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.