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bossdaddy
Jun 29, 2021 1:55 PM

Richard Wyckoff distribution bull trap  Short

TECH MAHINDRANSE

Description

1.green box appears to signal the resumption of the uptrend but in reality is intended to TRAP uninformed break-out traders the remaining demand.
2. in phase C price goes through a decisive test of the remaining supply, allowing the “smart money” operators to ascertain whether the stock is ready to be marked down.
>>if these points hold true we can take advantage with good risk/reward,
we can draw a pitchfork using expanding pivots (sign of reversal) in green box.
$$ valid entry could be at upper parallel of pitchfork with stop above green box and target of lower parallel (white box)
>> i sold 1100 call option
you can also buy a put of 1100
Comments
Trade_Like_Chameleon
Hi Bossdaddy, you came out wrong. It was a good short for a few days, then resume of uptrend. I think it is a wyckoff reaccumulation.
bossdaddy
@Trade_Like_Chameleon, yes you right it was a reaccumulation, i was new to wyckoff
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