As there is a debate going on after a big fall and the trend change of Nifty, I would like to share my understanding about the same.
In the picture, even if there is a formation of Lower Lows Lower Highs, the price should be considered in an uptrend as the point "3" is still intact. The LL HL formation above point 3 can be considered as profit booking stage. So the zone created between the points 2 and 3 may act as Demand Zone.
As long as the point 3 is intact, for me, the trend is intact,
happy trading friends,
regards,
mvp
