Reliance bull call spread
Buy 1*2100CE at 43 & sell 1*2200CE at 13
Net debit = 13 = Max loss
SL if Reliance fut breaks 2078
Technical charts on which this view is based , self explanatory
Nifty option strategy suggested :
Call ratio spread
Buy 1*16350CE ( 12 Aug expiry ) at 65 , sell 2* 16500CE ( 12th Aug expiry) at 26
Net debit = 13. Max profit at 16500
Unlimited risk > 16650
( disclaimer : we are already in this strategy)
Sorry, typo. Net debit = 30
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Ok, so completed the 4th day of live handholding today. We are doing positional as well as day-trading. Lots of old students repeating the handholding to practice. My methods are also getting sharper :)
Whenever some one asks me what returns they can expect after doing the course, my answer is " returns are a function of risk ". When pushed further, my standard answer is " around 3%", I never ever commit above this 😀
This is the actual performance of my day-trading calls. All trades explained with logic so that traders can now repeat the trades on their own.
Capital = 10 lacs. Returns given for 3 scenarios :
1% per trade risk, 0.5% per trade risk and 0.25% per trade risk
Received quite a few questions on how to use these levels, so here are some basic rules
1. 85% of the days, the markets will remain within these levels 2. When there is a breakout/breakdown of any one side, expect a fast large move that day
3. Bullish above the Balance, bearish below it 4. If we are bearish, one can sell CALLs above the upper level and vice versa 5. If bearish, look for sells from your other indicators to buy options and vice versa 6. Expect strong resistance/support at the upper/lower levels
When I started learning technical analysis, took me six months before I could draw trendlines correctly so that I could trust and trade on them.
RSI ?Divergences ? another six months😃
The way I use MFI ? 2 years 😃
Any TA tool like metastock, amibroker or tradingview has hundreds of indicators. Try mastering one at a time, you will master max 2-4 in the next few years
Let's say there is a very good swordsman. He has a very good sharp sword, perfectly balanced.
He gives you that sword, will you be able to fight as good as the swordsman ?
Technical analysis says two things : 1. Momentum precedes price 2. Volumes precedes price
So, if an indicator includes momentum and volume analysis, it will be a leading indicator to some extent. This is the crux why I am so much confident on MFI
The indicator can be used for swing as well as day-trading. I use a period of 10 as I have seen that being our responsive to our markets here
I had this theory that if #Bitcoin went below $30k , this time it probably won't go up again. Let's see
1. I had earlier posted a distribution analysis for bitcoin 2. Traders have been primed by the price action of the past few months where it goes below $30k on weekends and then bounces back. This dip should see heavy accumulation from retail and thus a perfect distribution point
If this is not distribution, I don't know what is. If I were trading this, would have shorted below $29k with a stop at $31k and then progressively trailed stops