How to find out Big moves while trading #BankNifty options .
A thread that will change the way you trade options
The option masterclass
#OptionsTrading #options #BankNiftyOptions
A thread that will change the way you trade options
The option masterclass
#OptionsTrading #options #BankNiftyOptions
1/10 The Logic
Logic is to trade the break out failure of support and resistance.
Big moves in the market comes only when there are trapped traders in the market.
Traders are trapped when they have position opposite to market direction,
A reversal gives explosive moves
Logic is to trade the break out failure of support and resistance.
Big moves in the market comes only when there are trapped traders in the market.
Traders are trapped when they have position opposite to market direction,
A reversal gives explosive moves
2/10 Pre-requisite for this strategy
For buying— Always trade ATM strike prices.
For selling- Always trade OTM strike prices.
Never risk more than 2% in a single trade
Lets move to the strategy part now…….
For buying— Always trade ATM strike prices.
For selling- Always trade OTM strike prices.
Never risk more than 2% in a single trade
Lets move to the strategy part now…….
3/10 Breakout failure of PDH and PDL
PDH - Previous Day High
PDL - Previous Day Low
PDH and PDL acts as a strong support and resistance for Index.
Backtest it and you will find out why.
PDH - Previous Day High
PDL - Previous Day Low
PDH and PDL acts as a strong support and resistance for Index.
Backtest it and you will find out why.
4/10 **Breakout failure of Fibonacci Level**
Fibonacci Levels are key support and resistance level
This works in trending market and works very nicely.
Only use 50 and 60% levels for best results
Fibonacci Levels are key support and resistance level
This works in trending market and works very nicely.
Only use 50 and 60% levels for best results
5/10 Breakout Failure of previous swing high or Low
Swingh high and Lows are also very important levels.
They are most obvious levels, so everyone have eyes on them. Hence it works very nicely
Most of the reversal occurs from these levels only
Swingh high and Lows are also very important levels.
They are most obvious levels, so everyone have eyes on them. Hence it works very nicely
Most of the reversal occurs from these levels only
6/10 **Breakout failure of recent low forming a Double Bottom**
You can look for RSI divergence in this kind of cases, but a reversal candlesticks pattern will also do the job.
You can look for RSI divergence in this kind of cases, but a reversal candlesticks pattern will also do the job.
7/10 **Breakout failure of Major Pivot High/Low**
MPH and MPL are powerful support and resistance level.
MPH and MPL are powerful support and resistance level.
8/10 **Breakout Failure of Initial 15 min Range**
Initial Range or first 15/30 min range also acts as a support and resistance.
Watch out for some reversal pattern at the range extreme.
Chart example
Initial Range or first 15/30 min range also acts as a support and resistance.
Watch out for some reversal pattern at the range extreme.
Chart example
9/10 **. Breakout Failure of Range extremes.**
Market when forms a range, most of the time it gives false BO of the range extremes. And that is the ideal time to enter.
Chart Example
Market when forms a range, most of the time it gives false BO of the range extremes. And that is the ideal time to enter.
Chart Example
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