This is chart of #banknifty this expiry.
Do you know, using a simple concept of #PriceAction would have made you 65 lakhs with a capital of 1 lakh.
How?
Read on..
Do you know, using a simple concept of #PriceAction would have made you 65 lakhs with a capital of 1 lakh.
How?
Read on..
This is first part of series of threads on Price Action Concepts.
Today we'll be dealing with..
SUPPORT AND RESISTANCE
Now the definition of these two you must be knowing, I'll cut the chase and deal directly with the best way to draw them .
Today we'll be dealing with..
SUPPORT AND RESISTANCE
Now the definition of these two you must be knowing, I'll cut the chase and deal directly with the best way to draw them .
The point where you draw your S/R line should have these characteristics -
1/ Extreme #Swing High & Swing Lows.
The extremes are the points where maximum orders are sitting, causing the price to move in opposite direction (that's why they are formed as extremes in first place)
1/ Extreme #Swing High & Swing Lows.
The extremes are the points where maximum orders are sitting, causing the price to move in opposite direction (that's why they are formed as extremes in first place)
Banknifty formed these Swing High and Lows.
Look at what happened the next day.
#Banknifty rejected from the High as well as Low extreme.
All you had to do was wait for the price to come to these levels.
Look at what happened the next day.
#Banknifty rejected from the High as well as Low extreme.
All you had to do was wait for the price to come to these levels.
2/ Multiple Rejections
The more times price is rejected from any level, the better S/R that level is.
This shows that there are many unfulfilled LIMIT orders sitting there and they'll get filled when #price reaches that level causing the price to take sharp turn.
The more times price is rejected from any level, the better S/R that level is.
This shows that there are many unfulfilled LIMIT orders sitting there and they'll get filled when #price reaches that level causing the price to take sharp turn.
36200 was rejected two times, Look at what happened when the #Banknifty reached there third time.
A sharp return.
Similarly you can See #Deepakntr rejecting from 2150 multiple times. Even the breakout was unsuccessful.
Only when all the orders were filled, it climbed again.
A sharp return.
Similarly you can See #Deepakntr rejecting from 2150 multiple times. Even the breakout was unsuccessful.
Only when all the orders were filled, it climbed again.
3/ Drastic Move Generated From That Area
The rejection from that are should be able to create a sharp and big move, the bigger the move, stronger is that area.
9300 was a major resistance for #SRF causing sharp & drastic rejections.
The rejection from that are should be able to create a sharp and big move, the bigger the move, stronger is that area.
9300 was a major resistance for #SRF causing sharp & drastic rejections.
When it was taken out with volume, only then SRF was able to reach 10000 levels.
(P.S. Now a days also 10350 is acting as resistance, we'll enter for 10500 & 11000 only when it is taken out.)
(P.S. Now a days also 10350 is acting as resistance, we'll enter for 10500 & 11000 only when it is taken out.)
4/ The Level Should Be Obvious
You need not spend more than 2-3 seconds to find them. More obvious more better.
1600 level was obvious Resistance for Grasim and it rejected many times from there.
( Yesterday also #Grasim closed at 1597, Let's see how it behaves at this level)
You need not spend more than 2-3 seconds to find them. More obvious more better.
1600 level was obvious Resistance for Grasim and it rejected many times from there.
( Yesterday also #Grasim closed at 1597, Let's see how it behaves at this level)
5/ Level Should Act As Both Support & Resistance
Hard to find, but if this criteria is fulfilled, the level becomes very strong and likely to be respected in future.
1000 was acting as Resistance for #GodrejCp, when broken it acted as a good Support.
Hard to find, but if this criteria is fulfilled, the level becomes very strong and likely to be respected in future.
1000 was acting as Resistance for #GodrejCp, when broken it acted as a good Support.
6/ Recently Respected
The more recent the level, the more important it is.
This Thursday, 36580 was acting as major support and #banknifty had returned from there 2 times. When it reached there third time at 3:00 pm, it made a sharp bounce.
The call of 36600 went...
The more recent the level, the more important it is.
This Thursday, 36580 was acting as major support and #banknifty had returned from there 2 times. When it reached there third time at 3:00 pm, it made a sharp bounce.
The call of 36600 went...
from Rs 17 to Rs 85. Effectively making 68 lakhs from 1 lakh.
( Although buying an OTM call at 3 pm in expiry is very very very risky and may end up eating all your capital, so not advised)
( Although buying an OTM call at 3 pm in expiry is very very very risky and may end up eating all your capital, so not advised)
The more of these 6 criteria are filled, more strong is the S/R level.
Also, you should draw S/R at chart of the Time Frame which you use for trading.
Day trading - 5 or 15 Min TF
Swing - 60 Min to 1D TF
Positional - Daily/ Weekly TF
Also, you should draw S/R at chart of the Time Frame which you use for trading.
Day trading - 5 or 15 Min TF
Swing - 60 Min to 1D TF
Positional - Daily/ Weekly TF
Now most important part, Do NOT trade blindly based on these criteria only, Wait for specific Price Action formation to confirm that level will break or hold; Which I'll deal with in next threads, coming soon, stay tuned.
Likes and Retweets are appreciated much.
XOXO
Likes and Retweets are appreciated much.
XOXO
A correction - Please read 17 lakh instead of 1 lakh.
Apologies.
Apologies.
Those of you who have liked and retweeted this thread, I'll be sending you the pdf of this thread in your DM, as a token of appreciation and for further reference in future.
🙂🙏🙂
🙂🙏🙂
This thread banged. Thanks to you all.
Will highly recommend you to go and check my pinned tweet.
The threads there are surely worth your time and will help conquering #Nifty #banknifty and Stocks.
X0X0
Will highly recommend you to go and check my pinned tweet.
The threads there are surely worth your time and will help conquering #Nifty #banknifty and Stocks.
X0X0
This is the Second part for this thread.
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