Thread by @csankalp

Shared this setup not just here but with my @HavanaOreen students as well at 11.45 am for #banknifty. This was the zone where most conventional studies could have been neutral to the max but not bearish for sure. But there lies the difference of having a view and trading the

https://twitter.com/csankalp/status/1658355549996474369

view. To understand the context lets see what happened on 15th.I had shared a level in bnf spot which had unfinished business.Yesterday this level absorbed the whole day’s demand and didn’t let price close above it and notice how HiPro turned bearish by closing despite being

above the conventional norms of looking at RSI above 55. Now lets see today’s chart.Since opening there were 2 failed attempts to approach the zone whereas HRSI remained bearish.Since opening the index components were showing strength but not the right intent. Whenever this

Happens it’s Gravity that wins in the end. There was a 3x supply cloud on top - thats the reason I did not take a single long trade today. A student even sent me a DM that I am too biased today. My reply was simple , either turn the captain bullish or let the other components

Push BNF above 44141 but until that happens i will keep looking for short trades. Now speaking of the captain, which was also one of the SFTs today . Had a similar bearish structure with 4x supply loud on top

I hope by now if you are still reading you wont be keeping a bullish approach for the day.the execution vehicle 44200 pe failed in the first attempt to breach the execution zone. I always reiterate that I need some part of the candle’s body above a marked resistance zone

A wick is just a means of the market to lure the weak hands where as a body ensures commitment of follow through
During the 2nd attempt the breach was decisive but the candle closed above my comfort zone of taking the trade at 352 level.

Its even better if you ask me

1. This just became a high probability setup
2. Instead of the usual 30 point stop loss I now have the
luxury of keeping the stop loss at just 15 points ( the last supply zone - BPOC pivot marked in orange .

Now since the move happened post 3 so there wasn’t much time left for it to reward. Yet I took it and it rewarded 1:3 while being in complete control of the trade. Now I am a system oriented rule based option buyer so my way of looking at markets and general direction might be

Different than yours. But every trader before risking even a single rupee should have a sense of direction, understand the context and should be willing to embrace the stop loss if at all the setup fails. Hope you learnt something through this thread , for tomorrow

as well the view remains same unless the components show intent. Thanx for reading TC