Trading points
Trading psychology -
1- If market is opened gap up at no resistance level + initial bias is buying then take a trade
based on halt analysis
2- If market is opened gap up at resistance level plus initial bias is selling then wait for support
creation
3- If market is opened gap down and support level plus initial bias is buying then take trade for
buying
4- If market is opened gap down and it is not opened at support then check the price action
5- If market is closed at major support level and if next day nifty opens gap up then there is a
high probability that it will continue its bullish trend so you can watch 3 minutes setup and
take up buy trade
6- If yesterday was bullish trending day yesterday then it is very high probability that it will
continue its buying trend today as well so that you can plan buying opportunity based on
halt analysis
7- If market is at high levels and there is no resistance and if initial bias is bullish then market
will take long pause for lot of time to reverse. It also should show divergence between nifty
price and put option
8- If there are continuous 2-3 days off bearish days then one day will be short covering day
where
9- If there are 2-3 continuous bullish days then there will be profit booking where we can take
short trade this is very difficult to identify but a divergence of nifty price and put option can
be checked
10- When banknifty or nifty has trendline formation after opening the market which has not
broken today’s high and it is near to today’s low then a trendline break can be a bearish
trade for us e.g. Nifty 5th Jan 2023
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How to trade
1- Keep split windows on the system where left window will have 30 min candles and right
side window will have three minutes candle
2- Draw major option chain lines on nifty and bank nifty charts
3- Draw 30 mins support and resistance lines
4- Open strike price call and put options
5- Open sensible charts for nifty and bank nifty and plot open interest graph to monitor
6- Take the trade at support based on candle formation we can refer candle formation PDF
to take trade double bottom candle formation can be observed for medium level support
and single candle formation can be observed for major support level
7- Take trade only at 30 minute support and resistance if market is in between support and
resistance then patiently watch where is the support getting created and then take trade
based on halt analysis
8- We can take trade at support based on single bullish as well but please check whether
call candle is in premium. E.g. if size of nifty bullish candle is 10 points and call bullish
candle is also 10 then trade can be taken
9- if initial bias is bearish then mark that level as resistance and then in trading day, if
market comes to that level then observe how market is behaving
10- if there is a gap up then mark previous day close price as support line
11- if you want to take bearish trade on top then check if trendline is forming or not.
check if bearish triangle is getting formed or not. you can take trade when trendline is
broken. This triangle will have 3 tops
12- If market is bearish then you need to watch if call is premium or discount if nifty is
showing bullishness at support if call is not showing the bullishness as compared to
nifty’s bullishness at support that means nifty may not take the support so you will have
to wait to form a proper support
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