SanJeet K. Profile picture
Jul 8, 2020 10 tweets 3 min read
#AuctionTheory #wychoff
Best theory of market to understand! Image
As said in auction theory. Try to understand whenever price too high or low, mostly big players will not going to buy or sell bcoz of big risk. Thats why whenever price too low smart people not going to sell at low lets price come to their price. Same like uptrend.
Read few times
Every buyer is a seller and every seller is a buyer. Buyer strong so market moving up and seller strong so mkt moving down is totally different perspective from my side.
After every time u buy, actually u become seller either by target or stop. Strong player accumulate position.
And seat tight for selling at only higher price. For hitting higher price such order filled by weak or late buyers & profit booking start; become resistance zone bcoz of strong seller sitting there. Same like mkt stop falling when some strong buyers coming and its become support.
There is nothing like aggresive buyer / seller yet. Thats why #AuctionTheory come into picture. Why high price rejected bcoz smart players know why buy costly or high price n supply coming down with price and when price low then strong player come and protect that level.
Now in Market not only one smart player, there r also so many smart player who wait for liquidity and good price and trapping different smart players. Now price at high strong player coming in and its become resistance, but other strong player think enough liquidity at high and
Price should move further up as per them they buy & trapped other smart players. If player strong at high then u will see price never reject quickly and stay there 4 a while and break high again n again and even with more big volume where weak hand keep selling
In thinking of price too high it will come down now & price keep moving until they dont think price enough to liquidate position.
Thats why oversold can be highly oversold.
2cent: If u r trend follower always try to buy high sell higher & intraday player then buy low sell high.
Test of demand or supply trade example when mkt stay in range after that one shakeout which is basically as per diagram test of supply n demand.

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More from @sanjufunda

Dec 29, 2021
👉 Decision Points:
In Intra Price Action; after opening and ORB next important point is DECISION POINTS, also slowly corelated to each other topics.
Let me sumup first imp key level.
ORB high/low, DH/DL, WH/WL, MH/ML, PDH/PDL, Inside Swing High/Low, Fractal, BRN, POC/HVN etc.

Not necessary to use each n every thing always but with context it's become important.
Normally these decision points play important role of technical to understand trend will continue if break n hold, false break and reverse or very imp level break then momentum can happen.
Read 12 tweets
Dec 20, 2021
↪️ Opening Range Breakout (ORB):
As clear with name range breakout view after some formation in open or previously as well.
What exactly ORB mean; in formation all type of players entered in market with some view either bullish/bearish/sideways.
Normally ended with few players win and few loss. So in other word some kind of consolidation happen initially which anyone can relate big volume at initial candle.
There are various different orb setup as well timeframe, all useful but different scenarios.
From 1min to 1day orb possible context. When there is emergency in market then even 1min/3min/5min orb really useful to make decisions. 15/30/60 is most standard orb look out by various ppl but more corelation imp like opening within range or gap or after opening breaking range.
Read 16 tweets
Dec 14, 2021
Leverage Thread 🧵
Leverage can make or break people.
Specially when we talk about derivative product which already leverage. If not aware about effect and side-effects then definitely.
Inspired by Wayne (Famous Portfolio and strategic builder).
As we know derivative product approx 6x leverage which means for 6L we normally pay 1L for taking it delivery in account. What if we take without leverage, less leverage risk exposure or even 10x leverage. Any system robustness checked by its drawdown properties.
When we can no leverage or 2x (small aggressive) most probable chance of survival in market higher, when we go by 5x-10x exposure which can easily kill in few drawdown phase, even completely.
Warren Buffett also emphasized so many times about leverage and risk.
Read 13 tweets
Dec 13, 2021
Calendar don't work like normal straddle or vega negative. Calendar means shorting high iv and long low iv set-up if trading atm or little offset classic calendar.
There is some difference always wat we look in theory and practical. Hope this link will be helpful.
Even today example, once fall create difference, then again fall make almost 5 pts iv difference as well delta mgmt avg. Eod gained quick 1% on margin within 2 hrs.
Read 6 tweets
Oct 6, 2021
#derivatives #nse
Data analysis not an easy task as it's look like.
Today I am talking about specially long or short buildup only. Everyone knows including book says when price going up with oi up is long buildup.
But in reality only few mins or one day buildup not enough to summarise it also confirmation required after any kind of buildup.
Let's explore more...
Any big players in intra or swing trader can't enter in mkt at once it's slow process.
And took almost good time for swing trader sometimes 3-7 days even more. For intraday it's in range of 30-60 mins.
Never judge direction so soon, until after buildup range not break or if some technical combination much better (optional).
Read 6 tweets
Sep 20, 2021
Today again IV in upward direction. 😬

Mindvoice: I want expiry day soon.
straddle premium continue up now. live chain and data changes can be checkout here:
Global looks so bad today.
Read 4 tweets

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