Hope people marked the zones and made use of them yesterday for #banknifty now anything that can be learnt from yesterday ? N I specifically mentioned " If you are an Options Buyer "
1. A buyer only makes money when there is a range expansion - what is the simplest way to
1. A buyer only makes money when there is a range expansion - what is the simplest way to
understand if there is a range expansion - Look at +/- DI if they are trading closeby and are below 25 you might make a few bucks by scalping(40-60 points in Spot) but it wont facilitate a range expansion (300+ points )
2. When price is between @HavanaOreen Bullish and Bearish
2. When price is between @HavanaOreen Bullish and Bearish
Breakout Zones the ADX generally is closely knit so we only expect scalping moves in the zone. People usually take years to master scalping as not everyone has fast execution and analytical skills and these dead zones contribute to the time where maximum people exhaust both their
Mental and financial capitals. Look at how BNF 43500 ce behaved - it kept trading in a range of 69 points for almost 2 hours yesterday so if you were lucky you could have made some bucks by scalping and if you were unlucky you would have given away stop losses multiple times.
Now I am taking of stop losses from the POV of a normal retail trader who respects risk ( 30 points to the max on an Index Option) not of a social media super trader with SL of 100+ points in Options ( Supreme Pun Intended)
3. Anything that is above price will act as resistance
3. Anything that is above price will act as resistance
Look at how @HavanaOreen BPOC acted as a strong resistance for almost 1.5 hours. You dont go long in a resistance zone you either start trailing the SL or wait for 2 possibilities
a) Take a reversal SCALP when the setup permits
b) Take a trade once the reversal is
a) Take a reversal SCALP when the setup permits
b) Take a trade once the reversal is
cleared with authority. Now what authority means here that I wont be able to explain as I take close to 40 hours to explain this to my students through charts and examples. And it was not just any random resistance it was @HavanaOreen BPOC whose relevance has been checked for
and backtested not just by me but 100s of my students and system users.
Now at 12.45 This resistance zone is cleared on MTF and we are good to go but there still lies a problem - +DI is still not strong. But this Leap of faith can be taken as the gap has started widening
Now at 12.45 This resistance zone is cleared on MTF and we are good to go but there still lies a problem - +DI is still not strong. But this Leap of faith can be taken as the gap has started widening
If you have come this far I am assuming you know price action and you knew that post 10.15 yesterday the longs would be rewarding if not then you should come back to this thread when you have learnt it.
Now coming to our execution vehicle - the 43500 CE notice the change in
Now coming to our execution vehicle - the 43500 CE notice the change in
price and in Cumulative Delta . Reminding again at this juncture that to buy this call here - the decision is coming from the study and analysis in the underlying that is Banknifty SPOT and not just this Options Chart. Many people offlate since my shift to GC have started
analysis primarily on the options - which is wrong.
Now before planning to take a trade lets just check
Trend - Bullish ✅
Immediate Resistance (BPOC) Breached ? ✅
Option - Call and ATM / ITM ✅
Delta Positive ? ✅
DI supportive ? 🚫
Success Probability of the Setup - High
Now before planning to take a trade lets just check
Trend - Bullish ✅
Immediate Resistance (BPOC) Breached ? ✅
Option - Call and ATM / ITM ✅
Delta Positive ? ✅
DI supportive ? 🚫
Success Probability of the Setup - High
With just a few hurdles this looks like a good setup to bet on. I did take a trade in this but from mobile as I was away. Just received an alert from TradingView that BPOC level has been breached. Took Exposure with reduced quantity and the usual 30 point SL for a 1:3 RR
and during the trade once and if at all it starts rewarding , the idea is always to trail the SL above cost so it becomes a risk free setup. How did the trade perform ? Achieved the target and went 80 rs more over and above the target that I had set. Most people at this juncture
dont celebrate the clean 120 points they made by buying the option but keep sulking for the 80 extra points left on the table. If you have any supernatural premonitions no one stopped you - you could have taken that leap of faith -if you did not - stick to your original approach
to keep the risk defined. I usually keep a staggered exits for the options that I buy but here If we look at the components plus the strength in DI as well , I started trailing the last trench and kept a trailing SL for it. Plus the screener was showing the right intent from the
components. Since I had reduced qty - I made only 28-29 K from this trade
Now the reason for this thread - Not every Option Buyer is loss making , if you know trend analysis and if you know when not to buy you already are 80% ahead of the common wealth.
Now the reason for this thread - Not every Option Buyer is loss making , if you know trend analysis and if you know when not to buy you already are 80% ahead of the common wealth.
But the randomness quotient and the affordability of buying option fills the space with a lot of indiscipline fueled by half baked knowledge and information. Its just like being part of a fatal accident in the most expensive and safe car - If you are a bad driver you will end up
banging both a cheap and an expensive car. Its the skill of the driver and not the car that ensures safety
I hope you learnt from this thread and if you are interested you can watch my daily trade recaps on
youtube.com
Thanx for reading , have a wonderful weekend
I hope you learnt from this thread and if you are interested you can watch my daily trade recaps on
youtube.com
Thanx for reading , have a wonderful weekend
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