Advice on Pivot by Raghav 28/09/2021
Nifty chart with key support and resistance within the pivot area.. watch the top resistance for the last three days where the market is going down including today's opening and then bottom buying area.. we have a wide buying area and if this is taken out by sellers (going below previous day low).. then the market can try 17750/17720.. otherwise .. it will spend time here and pull back upside after breaking the resistance.
short only 17860 below which is the lower CPR.. upper CPR which was yesterday double top resistance is broken and consider the current red candle as a test of upper CPR. if the market again breaks upper CPR.. you should be on the long side.. .. short form 17860 is also risky considering how prices moved up near yesterdays low.. so safe short only below yesterdays low as it demonstrates selling pressure and strength wiping earlier buying pressure and strength.
Need Not tell Both BNF and Nifty are in yesterdays price range.. what does this mean ?? the market participants are undecided or yet to decide which side to take the market.. one of the simplest and effective ways to gauge if the market has the strength to break the range and give direction is capturing higher highs and higher lows or lower highs and lower lows on 5 min time frame within the current days time period and see if the direction holds with 20MA or EMA.
Engulfing Candle formation in nifty .. the overall context of this Engulfing candle can be read by earlier buying area as this pattern is formed here indicating buying pressure at today's low (this can also be identified by the long wicks from the bottom on 5 min TF) Sellers will gain strength by taking out this Engulfing candle low at 17833.75.. where the market can go down to test today's low or previous day low and one can use this opportunity to the scalp. if the market fails to take out this engulfing candle then it will slowly pull upwards but there is no trade upside unless the high of the day is taken out and sustained.
When shorting in an uptrend. .it always has to be quick near levels.. market hit the previous buying area... and after waiting for 12 min dilly-dallying. I had 10 points out of which 6 points went in a pullback..near buying zone.. however, the market, after I exited again, gave those 6 points back. such is the risk of going against the established trends.
Scalping large order near S1 pivot with the reversal pin bar.
Low break out at S1 and S4 camarilla pivot.. 17777 as long as the price is below S4 camarilla it is considered to break out.
the best risk to reward was this area.. where I did enter and since then scalped more than 30 points however .. better than scalping was entering and holding your option until the price hits your stop loss. as it gave nearly 70 points .. which would have given me 14k with 200 quantity but I ended up scalping with higher lot size and doing counter trade.... which one has more risk?
If at all market takes to support this will be the level to watch 17675 the current days low, if this breaks then the market will hit 17650 and might attempt gap fill at 17609.
what I did is small profit as I got busy with work when fall had started and also note that I had lost 14.8k profit which I had made in the morning with the first reversal pin bar near S1 pivot .. but still made 20k... that is a trend. winning and losing is part of the business but how you react when losing matters in this profession.
based on proper trading.. one had more than 1 lakh with 1000 quantity after S1 break out the second time.. and one had 50k with 1000 quantity on CE side both ATM options .. all in all, 170 plus points on 17900 PE options and 85 points on 17650 CE option .. total 255 points of money. how much one could take in this is left to your imagination.
how pivots work on all time frames. the fall went till R1 daily pivot and took support with the trendline.
See this one. I did inform that if engulfing candle is taken out.. the market will test low .. also note that I knew today can be a trendy day with narrow CPR and there were signals of the market going down from the opening.. the engulfing candle break out downside should have been the stop loss and I did enter with that stop loss but failed to carry it .. due to fear or maybe I was happy with my earlier profits etc.. but had I carried it .. it hit 300... I could have gone from pivots to pivots.. but that's how psychology works.
If we are thinking about full-time trading.. all we need to capture in Nifty is 25/50 points in a range day and above 50 points in a trendy day. I'm deploying 20 lots for 10/15 points and I'm consistently making it .. however this will not help me to become a full-time trader15:41 so I'm working on deploying only 200/300 lots and target the same 25/50 points.. which amounts to 10k daily profit.. of course, we can lose on some days but that is okay .. once we practice capturing 25/50 points consistently then we can deploy more lots and go for the big kill.
Mastering pivots take time. if you truly stick to it you can make max money with price action ..it helps you make max money.. once you master pivots then you can use camarilla and pivots together to read the market blueprint. you will feel it is like magic.
By falling down and recovering market has given even narrow pivots for tomorrow.. this indicates market indecision as these narrow pivots are formed after a sharp fall and recovery.. either tomorrow will be premium eating sideway day or another trendy day if the market decides the direction.