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

1. 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