In technical analysis, majority of the patterns were first observed visually and then the rules made. Observing this interesting phenomenon on BNF over the past one month.
Any strong up day on BNF is immediately followed by a gap down open from the previous closing
So any upmove /upday is almost never having any follow-up buying the next day. Unless this pattern gets broken by 1-3 days of upmove after a strong closing, BNF looks extremely bearish. The logic of BNF seems to be " will kick your ass if you take bullish positions overnight" 😀
Jokes apart, if you want to understand the logical basis of patterns, this book is still the best :
Technical analysis of stock trends by Edwards and Magee

quantgym.biz/post/the-only-…
I had posted this logic earlier too, don't forget we are now within the budget day BNF range. Any meaningful support is at 31k levels on BNF. 33400 is another figure , this breakdown i had tweeted earlier also.
Old resistances becoming supports. A slightly larger time view. Break of today's lows of 32300 can open the floodgates

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More from @SubhadipNandy

8 Apr
The BNF OI puzzle, what I think happened. This is post mortem analysis 😀

COi was going up like crazy since early March, positions were being created in far month ( go thru my previous tweets) Image
OI = net shorts = net longs. So informed traders were taking a huge position expecting a parabolic move ( we did not know whether up or down). As of now, my guess is that the whole position was a long position. Someone had the info of the rate cut
You can see that the positions were cut hugely on 1st April. What happened on 1st April ?

This happened 👇👇 Image
Read 9 tweets
25 Mar
A 1000 traders using the same concept /method/setup will see in 1000 different and ways.
Subject : Today's BNF massive upmove in the middle of the day. So you think it was random and charts did not show that? 😀
This was pointed out by a student of my hand holding group in live markets, and I ignored it at that point of time. Owe gis this lesson
Quantifying Breakout users, attach the 10 period MFI and see it's behaviour for 30 mins before the move.

Once you observe and understand these type of nuances, only then you can go from good to great 👍
Read 5 tweets
25 Mar
Received quite a few questions on VIX, that why isn't VIX spiking up in this volatility and in this downmove ( VIX generally spikes up when index goes down, that's why it's also called the ' Fear Index'
The question is valid. This is what I think is happening :
VIX is calculated on the order book of options, this months and next months so close to expiry. VIX is kinda weighted average of the individual options volatilities
Volatility or IV is basically demand and supply. More demand for options, higher IV and more supply of options, lower IVs
Read 6 tweets
24 Mar
Received quite a large number of enquiries on the main option trading webinar and the live handholding group. Rather than answering individually, explaining the major points here .

First read this : quantgym.biz/workshop
This is a fully recorded workshop with 12+ hours of video. You also get access to all tools used in this workshop. System codes are on tradingview,
they are "invite only " indicators ( meaning you will be able to use the systems for lifetime, but the codes are locked )
You can subscribe if interested and start learning at your own pace. You will need a few weeks to understand and assimilate the concepts as they
are quite exhaustive and vast.
Read 9 tweets
23 Mar
Interesting question. Made me think , so did some basic data analysis
The bottom pane red line is 1 period ATR, the black line is a 200dma of 1atr. As we can see, intraday volatility/range is far above normal
The upper pane is the absolute value of close to next day open, again very high above average Image
Conclusions :
1. Intraday ranges giving huge opportunities
2. Overnight close to open gaps can kill if on opposite side

Hence, majority like us @Bijay_reborn have turned into majorly daytraders 😂
Read 4 tweets
23 Mar
Historic COI on BNF plus an event coming up - how are we placed ?

1. The COI buildup shorts has an average price of 35150
2. The shorters from 12th March ( 36400 levels) are placed at 34600
The reason I gave these two figures above is a lot of traders are expecting short covering. If shorts are sitting merry and making money, why the heck would they cover? Shorts only cover when they are trapped. As of now, LONGS are trapped
For any short covering to happen, 34600 has to be crossed. Till then, shorters are in firm control on BNF. These are long term deep pocket players, a 400-500 or even 1000 point moves on BNF will not shake them
Read 12 tweets

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