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AB=CD

HOW THE HARMONIC PATTERNS HELP IN OPTION TRADING AND VOLATILITYThe underlying chart gives us the data but it is important to look into the options chart for the trade. We normally wait for the breakouts to happen in the underlying chart but they happen way ahead in the options chart. By the time we take a trade in the options, it would have been late in options pricing. Below is the bank nifty options chart You can see that the breakouts are happening in both charts. Normally, the terminal bar price for a XACBD bearish butterfly pattern will be at the 1.618 fib ratio. However, for the shorts who enter at this level, the stop loss will be the next fib ratio i.e., 2 in this case. Shorts who entered at 1.618 would have exited in a loss at 2 level, then the price reversed drastically. The long traders who thought there would be a short-covering are trapped mercilessly. This pattern would have benefitted the traders who entered at point B (164.5) and trailed until 1.618 level ( D=197). The price pushed above until 2 (212) but hasn't closed above it and came down quickly. This trade would have given at least 20% for the longs. What I've learned from the harmonics in the volatile and fast-moving scripts is that always mark stop-loss levels also and wait for the price action to proceed. This post is just to show the importance of harmonics in options trading and for educational purposes. Give a like and leave a comment if this helps you. Happy trading :)
NSE:BANKNIFTYEducation
by Sanjan91
2
KOTAK BANK MAY HAVE THE FUEL LEFT TO CONTINUE THE RALLYKotak bank has took out the strongest supply zone and also broke the previous swing high with good volumes. The harmonic ABCD pattern gives us the targets of the next swing high. If these targets are taken out, the AB=CD pattern gives us the fib ratios until 3.618 when the AC is around 0.384 AB. So there is a lot fuel left for the rally which could lift the Bank Nifty even more. Buy in a pullback for better risk reward ratio. Happy trading :) This is just for educational purposes.
NSE:KOTAKBANKLong
by Sanjan91
NIFTY DAY TIMEFRAME ANALYSIS. IMPORTANT ZONE TO BE WATCHED.The Reciprocal ABCD pattern formed demand zone has been respected by the market until now. See until the day's end, if this zone is broken, then you can expect a major fall. I will attach a similar idea on the DJI futures chart here. Please look at both of them to make a decision. Don't just carry a short position beyond today's trading session. Wait for Monday's price action. Happy trading :) This is just for educational purposes.
NSE:NIFTY
by Sanjan91
COAL INDIA PRICE ACTION ANALYSISCoal India stock price has shown a nice rise of 6.39% today with good volumes. The price was trading in a falling channel, the price broke above the ABCD pattern's resistance level. This is a break-out level. The price is currently at a rejection point from where the massive fall in price had occurred in the past. It is important for the price to sustain above this level to continue the rally. The supply zone has been spotted on the chart, which might be a hurdle in the future. Better book profits from the supply zone. Happy trading :) This is just for educational purposes.
NSE:COALINDIALong
by Sanjan91
NIFTY SHORT IDEA. PRICE ACTION ANALYSISNifty has bounced off from the above supply turned demand zone and then closed below this zone. As observed, the price took a stop at 3.618 retracement of ABCD pattern. But looking at the DJI index, nifty is likely to open with a gap down. Here, 17400,17300, and 17200 have a good OI on the put side, meaning they are good supports. This has to be interpreted in the right way. 1) For the 17400 put writers exit, there will be a bounce if the market opens with a gap down. 2)If the price breaks the 17300 level, long unwinding could take the price near the demand zone but shall have already broken the trendline. 3) There will be an exit way for 17300 put writers as well. The price may bounce from the demand zone for their exit. 4) After breaking this zone, the price may come to test the 17200 level which is also has a huge OI on the put side. The fall could be up to 17120 if this level is broken. 5) As the volatility is high, expect the market to move violently. But get the swings right for good profits and be patient for the right entries. All the other data is mentioned on the chart. Happy trading :) This is just for educational purposes.
NSE:NIFTYShort
by Sanjan91
Reliance Industries price action analysisReliance Industries is currently trading at the potential reversal zone (PRZ)/supply zone set by the XABCD Bearish Bat Pattern. In the past after reaching the supply zone, it got corrected until 0.618 Fibonacci retracementent of CD. After a good correction, it is trading now near the supply zone. Since it touched the all-time highs, it never had closed above the supply zone. A daily or weekly(safe) close above 2275 could give a boost until 2307. Sustaining above this supply zone, the price may reach the 2382 level. Go long above 2275 and start booking your profits from 2307-2382 for a safe setup. Place Stoploss at 2256. Happy trading :) This is not an investment idea. Please consult your financial advisor before investing.
NSE:RELIANCELong
by Sanjan91
TRADE SETUP WITH ABCD PATTERN. GET YOUR SWINGS RIGHT. NIFTY50This tutorial is on the ABCD pattern and the instrument used here is Nifty 50. ABCD patterns are harmonics patterns from which swings lows and swing highs can be forecasted. The present situation is a bearish ABCD pattern. Each point denotes endpoints of the swings. A, B and C denote known swing points whereas D denotes the new swing high. The trade setup is explained on the chart for both longs and shorts. On breakout of point B, a swing high is taken out and point D would be our new swing high or it might be in the PRZ. For shorts, directly you could open a position at point D but confirmation is breaking off the trendline in the shorter timeframe. The profit-taking for the short position will be at 0.382-0.618 fib retracements of CD. The price bounced off from the 0.618 fib retracement. Harmonic patterns give us decent risk-reward ratios for the trades. Practicing these and getting the logic would make us a lot better. You can check out my ideas where I often use harmonics to analyze and give a trade setup. This is just an educational post. Going long and short immediately could not be practical at all times. :)
NSE:NIFTYEducation
by Sanjan91
BANK NIFTY TARGET PRICE LEVELSBank nifty showed a fantastic rally after breaking the 36100 price level. If it continues to sustain above 36300, then go long. Target 1 is given by AB=CD pattern with 2 as fib extension. If bank nifty manages above target 1 then trail stop loss until target 3. Targets 2 and 3 are in the PRZ, so book your profits timely. Above this PRZ, there will be another rally with shorts covering but considering today's rally, the index may undergo consolidation or correction. Place stop loss at 36134 price level. The logic for the stop loss is simple, 36100 was a strong resistance level. Now it became a support level. Happy trading :) This is not an investment idea. Please consult your financial advisor before investing.
NSE:BANKNIFTYLong
by Sanjan91
Bank Of Barodaa Buy At CMPBuy At cmp Stop Loss71.65(CLOSING BASIS) HEY TRADERS, THIS PREDICTION IS BASED ON A HARMONIC PATTERN AND THE HARMONIC PATTERN IS 100% ACCURATE AND10000% RISKY BECAUSE IT IS AGAINST THE TREND METHOD... HOPE YOU ALL FIND SOME VALUE Here...SO, DON'T FORGET TO LIKE AND SHARE THIS POST. DON'T FORGET TO SUBSCRIBE. COMMENTS WRITE DOWN BELOW OF THIS Chart... THANK YOU... ~Disclaimer: "I Am Not Sebi Registered Advisor" All views and charts shared in this terminal are purely for knowledge and information purposes only.
NSE:BANKBARODALong
by ashish_2108
3