Thread by @niki_poojary

Why we sold only CE's today ?

A small 🧵

Collaborated with @AdityaTodmal

• BNF reversed from 32155 (low made on Mar'8)

• One side rally to butcher the CE writers

• Gap up opening by ~1300 points

• From Mar'8 low till today open ~2800 point rally

• 2800 point rally in just 1.5days

• Trend on the larger TF still bearish

• Due to election results we decided no to carry any overnight positions

• Selling PE on the back of 2800 point rally would have been disastrous due to unfavorable R/R

• So we were very clear to short only CE's

• But then need to follow the trend

• We decided to short CE at the break of first 5min candle

• By 9.45 it started to reverse

• Spotted M pattern at the resistance and started shorting CE's thereafter i.e. post 12.12 hours

• Also BNF resisted at the weekly Channel BD re-test zone

• Patterns Made in BNF:

1. W pattern near lows, made on March 8,
(near 32115 lows, which is also the 1st demand zone in weekly)

https://twitter.com/niki_poojary/status/1501102184767066114?s=20&t=yGpMV2_IqKLrJwyHZedpWA

2. Flag pattern post the BO of W pattern

https://twitter.com/niki_poojary/status/1501453034479824899?s=20&t=yGpMV2_IqKLrJwyHZedpWA

3. M pattern near the upper levels on March 10

• Hope this helped to understand the logic for shorting only CE's in today's expiry

• If you found this useful, please do RT first tweet

See past 🧵 here:

@AdityaTodmal
&
@niki_poojary