"NIFTY FAKE BREAKDOWN" REAL EXAMPLE

 WHAT IS FAKE BREAK DOWN IN OPTION BUYING


WHERE IT OCCURS AND HOW IT OCCURS


Support and Resistance Levels: 

Fluctuations around key support or resistance levels that initially indicate a breakdown but may not sustain.


Market Manipulation: 

Instances where market actors may attempt to deceive traders by creating false breakdown patterns.


Whipsaw Movement:

 Rapid price movements that falsely suggest a trend reversal, often leading to sudden reversals.


Liquidity Issues: 

Temporary lack of liquidity causing price movements that might resemble a breakdown but later revert.


Market Sentiment: 

Sudden shifts in market sentiment causing apparent breakdowns that don't continue.


Option Expiry:

 False breakdowns close to option expiry dates used to manipulate options prices.


Technical Indicators:

 Misleading signals from technical indicators like RSI, MACD, or Moving Averages, indicating a breakdown that fails to materialize.


News or Events: 

Immediate market reactions to news or events that later prove to be exaggerated or temporary.


False Breakout: 

Similar to a breakdown, a false breakout is when the price briefly moves beyond a support or resistance level before reversing.


Volatility Spikes: 

Sharp but temporary spikes in volatility causing false breakdown signals.


SEE THE NIFTY SPOT CHART OF 30TH NOVEMBER 

HERE IN THIS CHART YOU WILL SEE NIFTY BROKE 19000 LEVEL AND PUT BUYERS ENTERED WITH FORCE AND MARKET REVERSED, SO ALL PUT BUYING RETAIL TRADERS GOT TRAPPED.



TO CONFIRM THESE YOU CAN SEE CALL AND PUT OPTION STRIKE PRICE CHART

PUT OPTION STRIKE PRICE 19000 CHART


IN THIS CHART 1ST 5 MIN CANDLE HIGH LOW IS 

190 AND 218  . NOW THIS HIGH GOT BROKE WITH VOLUME AND ALSO VWAP GOT BROKE, BUT IT WENT TILL 243 AND THEN CAME DOWN. WITH VOLUME GROWING, LOT OF RETAIL TRADERS MUST HAVE ENTERED. AND THEN GOT TRAPPED. 



NOW SEE CALL OPTION CHART .

HERE MARKET SUPPORT LINE GOT CROSSED WITH BIG GREEN CANDLE ALSO VWAP GOT CROSSED, BUT VOLUME WAS MISSING. VOLUME WAS THERE BUT LESS VOLUME AND MARKET REACHED TILL 306 AND THEN 316.



SO IN THIS TRADE YOU CAN SEE, THAT DONT JUST JUMP IN ANY TRADE, WAIT FOR PROPER SETUP TO FORM, THIS WILL HELP.


PLEASE NOTE, BEFORE READING AND SEEING THIS STRATEGY, MAKE SURE THIS IS JUST FOR EDUCATION PURPOSE. I AM NOT SEBI REGISTERED. IT’S NOT CALL OR PUT BUYING ADVISE. 

I AM JUST SHARING MY VIEW. IF YOU LIKE IT. YOU CAN FOLLOW. PLEASE BACK TEST AND DO YOUR OWN RESEARCH, BEFORE ENTERING REAL TRADE. OPTION IS VERY RISKY, SO DON’T FOLLOW ANYONE, BLINDLY. DO FULL PRACTICE AND KEEP PROPER STOPLOSS AS PER YOUR RISK.

Comments

Post a Comment

Popular posts from this blog

NIFTY OPTION BUYING FOR 12TH OCTOBER

Image
SAFE STRATEGY FOR NIFTY OPTION BUYERS NIFTY SPOT CHART FOR 12TH OCTOBER 2023. CALL BUYING STRIKE PRICE 19850 AND PUT BUYING STRIKE PRICE 19800   see the chart below for 19850 buying is 165 and high is 174. so approx 10 points.  in this case, let the premium cross 174 with good volume, or else dont enter the trade.in the volume chart there is no volume at all. now in put chart for 19800 you can see 123 is low, so you can buy at 123 if there is volume for buying, here stop loss is 113. so if you enter here, you target can be  139, it reached till 152. but there was no volume so we exit fast, in option buying dont buy if there is not much scope of big target, or else if you enter the trade, exit fast, if volume is missing. PLEASE NOTE, BEFORE READING AND SEEING THIS STRATEGY, MAKE SURE THIS IS JUST FOR EDUCATION PURPOSE. I AM NOT SEBI REGISTERED. IT’S NOT CALL OR PUT BUYING ADVISE.  I AM JUST SHARING MY VIEW. IF YOU LIKE IT. YOU CAN FOLLOW. PLEASE BACK TEST AND DO YOUR ...
Read more

warren buffet option trading strategy

 Warren Buffett, the legendary investor and chairman of Berkshire Hathaway, is known for his value investing approach and generally avoiding complex financial instruments like options. Buffett has often advised individual investors to focus on long-term, fundamental investing rather than trying to speculate with options or other derivatives. His investment philosophy is built on the following principles: Invest in What You Understand: Buffett recommends investing in businesses and industries you understand. He often emphasizes the importance of investing in companies with durable competitive advantages, also known as economic moats. Buy and Hold: Buffett is a proponent of long-term investing. He suggests holding onto quality stocks for the long haul, rather than trying to time the market or engage in frequent trading. Margin of Safety: He advocates buying stocks when they are undervalued, with a margin of safety. This means buying stocks at a price significantly lower than their in...
Read more

Best "Nifty option strategies" For buying "Intraday Nifty options"

Image
 "Nifty option strategies" As you all know, we are here to discuss about nifty option buying. we focus on buying option and not selling. option selling is considered is safe trade buy its very costly and required big capital to trade.  but for option buying, the capital required is very less, and if you practice hard then there are good chances to succeed in nifty option buying too. Its said 9 out of 10 buyers loose money. so its risky, but to be in then winning trade, you can follow some good strategy.  What is  "Best Nifty options to buy".  As per my view i will say, go for far options while buying, dont go for very near expiry. near expiry will be less costly, but very risky if trade goes against you.  Is it good to get "Nifty option trading tips" Getting tips from someone is not bad, but following that tip blindly is very risky, i suggest you to first learn and understand options. then do some practice with paper grades, then once you are confident, go...
Read more