Nifty larger sentiment was down, this was just a pull back in larger down sentiment. Nifty was moving in up channel, buyers expecting a reversal to 17800. Follow buyers sellers action and what their expectations are and when they will be in pain!!
Check below chart for detailed analysis -
1. Buyers were buying along lower trend line in hope of upper channel at least since yesterday.
2. Sellers were selling along higher level of channel since yesterday.
3. Decrease in lower slope indicated interest or strength in buyers decreased.
4. Nifty unable to test upper level meant sellers becoming stronger continuously.
5. Buyers were getting weaker continuously, Sellers were getting stronger continuously and fight was getting concentrated. Finally sellers(larger sentiment) won and we had 250 point fall.
Always keep the larger sentiment in mind, this up move was just a pullback in larger negative sentiment.
After identifying the narrowing of range you could have traded in 2 ways -
1. Short in anticipation of larger sentiment continuation which was down with target - 17400, stop above 17600.
2. If you had no directional idea or bias then - Buy CE/PE of same price to use the range expansion after range contraction. So you could have made money even without knowing or caring about direction.👍
Check below chart for detailed analysis -
1. Buyers were buying along lower trend line in hope of upper channel at least since yesterday.
2. Sellers were selling along higher level of channel since yesterday.
3. Decrease in lower slope indicated interest or strength in buyers decreased.
4. Nifty unable to test upper level meant sellers becoming stronger continuously.
5. Buyers were getting weaker continuously, Sellers were getting stronger continuously and fight was getting concentrated. Finally sellers(larger sentiment) won and we had 250 point fall.
Always keep the larger sentiment in mind, this up move was just a pullback in larger negative sentiment.
After identifying the narrowing of range you could have traded in 2 ways -
1. Short in anticipation of larger sentiment continuation which was down with target - 17400, stop above 17600.
2. If you had no directional idea or bias then - Buy CE/PE of same price to use the range expansion after range contraction. So you could have made money even without knowing or caring about direction.👍
