Get started

Beyond Technical Analysis

Big Move? No Problem – Sell CE and Let Theta Work!Hello Traders! We’ve all seen those days when the market opens with a big gap-up or gives a strong rally – and most traders start panicking. But if you’ve been into option writing, you know that’s exactly when opportunity shows up. High IV + inflated premiums = perfect setup to sell Calls (CE) and let Theta (time decay) do all the work for you. Why this works so well after a big move: CEs become expensive: After a sharp rally, call options are overpriced. That’s your edge as a seller. Theta kicks in fast: If price starts to cool off or even just go sideways, the time decay starts eating the premium quickly. Price usually settles down: Markets don’t rally forever. After a big move, some pause or pullback is very common. You don’t need to be 100% right: Even if the price doesn’t fall, you still make money as long as it doesn’t fly through your strike. Some ground rules for this strategy: Sell Out-of-the-Money (OTM) Calls: Pick a strike that’s at least 1–2% away from current price with decent premium. Find nearby resistance: Sell near technical resistance zones where price usually slows down. Don’t sell into crashing IV: Make sure IV is still high. If it's already falling, your edge is gone. Always use a stop loss: Set a level where you'll exit if the trade goes against you. Never hold naked without a plan. Let’s Talk Real Example – Glenmark 2300 CE Sell Check the chart above 👆 Glenmark gave a huge 10% gap-up and rallied up to 20% intraday . That’s a crazy move – and we know what that means: CEs were loaded with premium . So around 11:15 AM (when the stock hit the top), we started selling the 2300 strike OTM CE . What happened next? Price went sideways. No breakout. But the premium kept falling hard. Even though price didn’t hit 2300, CE collapsed – pure Theta magic! Rahul’s Tip When premiums are juicy after a big move, you don’t need to do much. Just sell smart, manage your risk, and let Theta take care of the rest. Final Thoughts: CE selling isn’t about catching reversals. It’s about taking advantage of overpriced options and letting time work for you. So next time the market gives a big rally, don’t chase it. Just chill, sell smart, and let Theta kill the premium! Do you sell options after big moves too? Share your views or setups in comments!
NSE:GLENMARKEducation
by TraderRahulPal
2
Market Structure & Plan – 22 July 2025🟣 Bank Nifty Analysis Timeframes used: 4H, 1H, 15min Current Price: 56,916 🧠 Market Context: Sharp rally from demand zone 56,200–56,300 Price currently testing strong supply zone at 56,900–57,000 Another heavy supply zone lies at 57,300–57,400 🗺️ Key Zones: Immediate Resistance (Supply): 56,900–57,000 57,300–57,400 Immediate Support (Demand): 56,200–56,300 📉 Trade Plan: Scenario 1 – Short from Resistance (high-probability): Look for rejection signs at 56,950–57,000 (like shooting star / bearish engulfing on 15min). Entry: 56,970 SL: Above 57,050 Target: 56,500 → 56,300 Scenario 2 – Breakout Buy (risky unless clear strength): If price breaks and sustains above 57,050, look for pullback entry. Entry: 57,070 on retest SL: Below 56,900 Target: 57,400 Focus on reaction in supply zones. Wait for confirmation before taking directional trades.
NSE:BANKNIFTYLong
by BhardwajVipin
Bajaj Auto Ascending Triangle Breakout: ₹8,650 → ₹9,700🔎 Study: This analysis is based on the daily timeframe, focusing purely on price action and chart patterns—no indicators, no news. 📈 Pattern: Symmetrical triangle formed since May 2025. 🔹 Breakout Signal: Today’s daily candle closed decisively above the upper trendline, confirming the triangle breakout. 🔹 Entry: • Buy around ₹8,420–8,450 once price sustains above the broken trendline. 🔹 Stop‑Loss: • Place at ₹8,306 (today’s low) to invalidate the breakout on a downside close. 🔹 Profit Targets & Trailing: Short‑Term: ₹8,650 → book partial & trail stop to ₹8,770 Mid‑Term: ₹8,770 → trail stop toward ₹9,000 as price clears each resistance Long‑Term: ~₹9,700 (triangle height projection) over 2–3 months+ 🔹 Risk Management: • Expect minor pullbacks at interim resistances—healthy for continuation. • Adjust position size and stop distances to match your risk tolerance. ⚠️ For educational discussion only; not financial advice. 🔍 Always do your own research and manage risk with proper stops. 👍 Boost if you find this useful, drop a 🚀 in the comments, and share your ideas below!
NSE:BAJAJ_AUTOLong
by Alert_Trader
HAVELLS Channel Breakout Setup with Earnings Ahead Havells is approaching a crucial resistance trendline within a well-defined downward sloping channel. Price currently tests mid-channel and historical supply zones, with multiple Leola Lens SignalPro yellow caution labels plotted—historically seen before directional reversals. 📌 Structure Highlights: Clear channel formation since April Multiple resistance rejections near 1580 zone Buy interest seen near lower boundary with SignalPro confirmation Breakout projection suggests target zone near 1680, aligning with prior volume gap 📅 Earnings event likely to be a catalyst. Monitor price behavior post-results for potential breakout confirmation above 1580. 🧠 Leola Lens™ SignalPro Notes: Yellow caution labels have repeatedly appeared near key turning points within the channel, suggesting possible trend transition zones. These zones highlight moments of institutional activity, where smart money behavior often shifts. The yellow caution markers indicate potential trend change zones, based on historical conditions where price has shown institutional interest or liquidity shifts. These zones are not direct buy/sell signals, but highlight areas to monitor closely for structural confirmation. 🧠 This chart is intended for educational and structural analysis only. No financial advice.
NSE:HAVELLSLong
by LEOLALENS-OFFICIAL
Trade Plan for July 22, 2025 (Tuesday)📍 Bias: Bullish to Neutral (Intraday) Price has bounced sharply from demand and is now approaching a lower supply zone (25,140–25,180). Momentum is positive but nearing resistance. 🔼 Scenario 1: Long Entry on Pullback Entry: Near 25,030–25,050 (minor pullback) SL: Below 24,980 (below recent base) Target 1: 25,140 Target 2: 25,180 (partial profit) Target 3 (trail): 25,250–25,280 (aggressive target) Condition: Price should not break below 24,980 intraday. Watch for bullish 15m structure continuation or bullish rejection candles. 🔽 Scenario 2: Short Entry from Supply Zone Entry: 25,160 – 25,180 SL: Above 25,220 Target 1: 25,050 Target 2: 24,980 Setup: Look for rejection or bearish engulfing in 15m chart inside supply. Condition: Preferable if price opens gap up or opens flat and reaches resistance in first half. ⚠️ Avoid Trade If: Price stays between 25,060–25,130 (mid zone = no man's land). No momentum or choppy price near resistance.
NSE:NIFTYLong
by BhardwajVipin
2
XAUUSD - ASCENDING TRIANGLE BREAKOUT POSSIBLEXAUUSD - BULLISH BREAKOUTS We can see a good momentum above the marked levels with a possible breakout of Ascending triangle pattern. Wait for a candle CLOSE above the marked levels i.e. 3368-3369. Expected targets can be 100$ from the marked levels or more can be captured by trailing SL. Stoploss could be placed at 3268. 1st Target - $3468 2nd Target - $3500 3rd Target - $3568 Please consult your advisor before taking any trade. #swingtrade #xauusd #technicals
OANDA:XAUUSDLong
by CAShriDharM2122
1
Gold price increased, broke 3360Plan XAU day: 21 July 2025 Related Information:!!! Gold prices (XAU/USD) are extending their upward momentum for the second consecutive session on Monday, as buyers remain cautiously optimistic and await a decisive breakout above a multi-week trading range before committing to further gains. The US Dollar (USD) begins the new week on a softer footing amid mixed signals regarding the Federal Reserve’s (Fed) interest rate outlook—an important factor currently supporting the precious metal. Additionally, persistent concerns over the potential economic consequences of former President Donald Trump’s unpredictable trade policies are bolstering gold’s appeal as a safe-haven asset. personal opinion:!!! Short term H1 frame, gold price breaks 3360 forming bullish structure. Uptrend continues to maintain Important price zone to consider : !!! resistance zone point: 3377 zone Sustainable trading to beat the market
OANDA:XAUUSDLong
by JJainy
1
HAVELLS Pre-Result Reversal Watch I Holds for Potential 1600Chart Type: 15-minute | Tool Used: Leola Lens SignalPro Price action has rebounded from a key liquidity zone (highlighted yellow) with visible accumulation below ₹1,520. Key Observations: Price retested prior demand zone (marked by SignalPro with structure and volume signals). Potential bottom formation visible intraday with higher low attempt post 12 PM. Rejection of downside wick near ₹1,514, aligning with earlier liquidity pockets. Idea View: If price sustains above ₹1,525–₹1,530, possible momentum expansion toward resistance zone at ₹1,600.60. Clean structure break above previous order blocks may attract trend traders. Result-based volatility expected — manage risk, especially with expected earnings post-market today. Risk Reference Zone: Invalid below ₹1,510 (red shaded zone) This is not financial advice. Chart is for educational and structural reference only. #HAVELLS #PriceAction #ChartAnalysis #MarketStructure #SignalPro #LiquidityZones #TechnicalAnalysis #TrendReversal #NSEStocks #EarningsSetup
NSE:HAVELLSLong
by LEOLALENS-OFFICIAL
HERO MOTOCORP LTD. ----- Deep AnalysisHERO MOTOCORP Ltd.--- High Probability Reversal Setup based on (Power of 3) concept of ICT Strategies. Timeframe - Daily Current Price -- 4396 Projection -- High Probability Reversal Setup after Manipulation phase. Price Action Overview --- Stock is currently Respecting higher time frame Orderblock just after Accumulating Liquidity in its sideways Range. Orderblock Zone -- 4390-4500 In retailers term, It is rejecting upside Resistance or Orderflow zone of 4380-4500 Levels. Liquidity & POI Zone -- Immediate Liquidity is resting in orderblock zone of 4400-4500 Volume Imbalance --- Downside Unmitigated Liquidity is resting in Volume Imbalance zone of 3800-3920 Levels. RSI --- 1st Divergence observed at bottom From March to April period which showed bullishness and market moved upside. 2nd Divergence observed at Upside from 20 may to Mid july period which now shows bearishness and market likely downside. Final Projection for 2-3 months View ----- Main Target (High Probability) -- Price likely to grab Orderblock Liquidity (4390-4480) to manipulate retailers. -- After rejection and Clear Market structure shift on lower time frame, Entry module will be confirmed. -- From entry Module a Sell position expected towards downside Volume Imbalance zone as marked as Distribution. -- Entry Module --- In the Orderblock zone price levels (4390-4480) -- Target projection --- Volume Imbalance Zone (3850-3930) -- Exit Area --- If stock continue going upside without giving any market sturcutre shift then avoid above 4600. This setup is just reflecting the POWER OF 3 Concepts -- Accumulation >>>>>> Manipulation >>>>>> Distribution. it means that first stock accumulates large liquidity and then gives a fakeout or false breakout before giving huge opposite move. Traders or Investors views or comments are most welcome. [Disclaimer --- This setup is made just for Educational purpose onlu. Dont consider it as any Investment Idea. Consult Your Financial Advisor before any investment.) Regards, Hit_Analyst
NSE:HEROMOTOCOShort
by Hit_Analyst
4
Sensex 1D Timeframe✅ Current Market Status: Closing Price: ₹82,452.00 Change: –148.32 points Percentage Change: –0.18% Day’s Range: ₹82,300.70 – ₹82,892.30 52-Week Range: ₹65,302.20 – ₹83,822.00 🔍 Key Technical Levels: 📌 Support Zones: Support 1: ₹82,200 – minor trendline support Support 2: ₹81,800 – recent bounce zone Support 3: ₹81,000 – strong institutional buying level 📌 Resistance Zones: Resistance 1: ₹82,900 – intraday high rejected Resistance 2: ₹83,400 – multi-session top Resistance 3: ₹83,800 – all-time high zone 🕯️ Candlestick Pattern: Candle Type: Bearish body with upper wick Formation: Reversal candle after a small bounce Implication: Supply seen near highs; indicates hesitation in buying 📈 Indicator Status (1D Timeframe): Indicator Value & Signal RSI (14) ~45 – Neutral but slipping downward MACD Bearish crossover – sellers gaining control 20 EMA ~₹82,780 – Price below this level (short-term bearish) 50 EMA ~₹82,000 – May act as dynamic support soon 📊 Price Structure Summary: Sensex is in a tight range between ₹81,800 and ₹83,400. The price rejected from ₹82,900, showing sellers are active. If ₹82,200 breaks, we might see movement toward ₹81,800 and ₹81,000. A bullish breakout will only occur above ₹83,400 with strong volume. 🧠 Market Sentiment & Institutional View: Volatility: Moderate — no extreme panic or euphoria Volume: Average — no big accumulation seen Smart Money Activity: Likely waiting near breakout levels or lower discount zones (₹81,000) 🔚 Summary: 🔴 Short-Term Bias: Slightly Bearish 🟡 Key Range: ₹81,800 – ₹83,400 ✅ Buyers' Entry Point: Above ₹83,400 ⚠️ Sellers' Trigger: Below ₹82,200 or ₹81,800 for more downside
BSE:SENSEXLong
by TechnicalExpress
1
True Close Theory in Action: Institutional Levels In modern trading, price action alone isn’t enough. What separates professional and institutional traders from the rest is how they interpret where price closes — not just where it goes. This concept is captured in what we call the True Close Theory — the belief that: "The candle’s close reveals the market’s true intent — not the wick, not the high, and not the drama." Here’s a live market example to show how you can apply True Close Theory using 1-hour closes, with confirmation and entries from 15-minute or 5-minute charts. 📊 Chart Breakdown Let’s break this down: 🟨 Yellow Zones: Manually marked support and resistance zones, drawn based on past price reactions, where institutional activity is likely. ➡️ White Arrows: Represent the 1-Hour True Close for the Day — highlighting how price reacted around those institutional zones on a daily basis. 🔵 Blue Downtrend Line: Visual structure of lower highs confirming a bearish environment until a new character shift happens. 🧠 The Power of 1-Hour True Close Instead of chasing moves or relying on breakout wicks, the True Close method waits for: The daily close of the 1-hour candle. A close above or below an important level or zone. If it fails to close above resistance or below support, it signals institutional rejection. This daily closing behavior often sets the tone for the next session. 🧷 Real Market Behavior from the Chart 🔽 Shorts from Supply Rejection Price enters the upper yellow resistance zone. Each day, the 1-hour close fails to stay above — shown by white arrows closing back inside or below. This indicates strong institutional selling, not a breakout. 👉 Lower timeframe entry (15m/5m): Once the daily close rejects, traders drop to the lower TFs to find pullback entries with: VWAP/EMA rejection Reversal patterns Liquidity sweep fake-outs 📉 Consolidation to Breakdown Mid-chart shows several days of tight range inside a minor structure. Despite upward attempts, the true closes show no bullish follow-through — just sideways absorption. Eventually, price breaks down from support with a daily 1-hour close outside the yellow box. 👉 Again, entries can be managed on LTF pullbacks to the breakdown zone. 🔽 Final Leg to Demand Price sells off sharply toward the bottom yellow support zone. Even after a minor bounce, the daily close doesn’t show strength — again highlighted by weak closes with no bullish engulfing or structure reclaim. 🔁 How to Use This in Your Trading ✅ Strategy Flow: Mark Institutional Zones (support/resistance from HTF like 1H/4H). Wait for 1-Hour Daily Close (ideally around session end like NY close). Check if the candle: Rejected the zone (closed inside) Broke clean (closed above/below with body) Drop to 15m or 5m chart the next day/session: Look for re-tests, patterns, structure shifts. Enter with tight stops, targeting the next zone. 🔚 Final Thoughts This chart is a live example of how True Close Theory combined with institutional S/R zones gives you a powerful advantage: You’re not guessing. You’re not chasing wicks. You’re aligning with how smart money actually operates — by watching the close and letting the market reveal its bias. Happy Trading !!!..
NSE:NIFTYEducation
by rakeshreddym
4
S Chand & Company Ltd. ---- Deep Analysis (On Subscriber's Demand) S Chand & Company Ltd. ----Deep Analysis (Weekly & Daily Outlook) + Fundamental Outlook =========================================================== 1. Technical Outlook--------- This analysis is made on Higher Time frame Combined (Weekly & Daily) I have used Weekly Time Frame chart for showing analysis (I will update Daily chart on Note.) My Observation ---- 1. Market Structure Shift (MSS) -- --Clear Shift from bearish to bullish around late 2020, with break of sturcuture (BOS) and formation of idm (Inducement) -- there we saw a trendline liquidity sweep and Institutional BUying Zone near 148-160 levels. 2. Current Price Acttion --- -- Price currently reacting around 209-210 as former resistance and now becoming potential support. -- Price has entered previou supply zone, targeting for High Probability POi zone near 260-300 levels. 3. Long Term Institutional Accumulation Zone -- -- Accumulation range and Institutional buy Zone are identified (you can check, i have marked in bold grey.) -- The Bullish FVG(Fair Value Gap) and Order Blocks zone are respected buy price which means it follows Smart Money. Short Term Bias (3-4 weeks ) ---- Bullish Outlook Entry ZOne -- CUrrent Price zone around 210 can act as a base for short term long. Immediate Target -- 270-280 Levels (A Minor Supply ZOne) Pullback Possibility -- If market needs liquidity then it may test back towards 200-205 zone (Demand Flip Zone) SL Zone -- If price breaks below 195-200 on strong volume then it voids the Bullish move for short run. Mid term Bias (1-3 Months) --- Same Bullish Outlook Price is gearing up to revisit the High Probability POI around 300-320 levels (Marked in Bold) Weekly Sturcture is clean and following -- Accumulation >> Expansion >> Pullback >> Re-accumulation >>> Expansion For Entry module --- Always follow lower time frame and check the Structure shift and displacement for Entry purpose. IMP --- I will also share (on Note) Daily Time Frame chart and Lower Time Frame chart for Entry module Education purpose. Just Check that also on time when price reaches the demand zone marked in bold. ====================================================================== 2. Fundamental Outlook ----------- (Source - Screener) -- Company is engaged in publishing educational books with products ranging from schools books , higher academic books, competition and reference books etc. -- S chand & company is on 2nd position according to Market Cap in its peers and key competitor is Navneet Education. -- Company has a diverse portfolio with over 11000 titles and has sold over 50 million books in past year. -- Latest News on S chand reports Highest 5-year revenues. ---Compounded Sales Growth 10 Years: 4% 5 Years: 11% 3 Years: 14% TTM: 9% ---Return on Equity 10 Years: 3% 5 Years: 4% 3 Years: 5% Last Year: 6% FY25 Projections --- 1. The Company Expects their Operating Revenues to grow in double digits. 2. EBITDA margin band upgraded to 17%-19% (up from 16%-18% in the last year). 3. Company aims to remain net debt-free for at least three quarters during FY25. (Source -- Screener website for Fundamental information) ========================================================================== (Traders and Analysts or Anyone, Your views or observations and comments are most welcome.) Disclaimer -- This analysis is made for Educational purpose only. Do not consider it as any Investment idea. Consult your financial advisor before any investments.
NSE:SCHANDLong
by Hit_Analyst
BTC AI Prediction Dashboard - 6h Price Path (19.07.25) Prediction made using Crypticorn AI Prediction Dashboard Link in bio BTCUSDT Forecast: Crypticorn AI Prediction Dashboard Projects 6h Price Path (Forward-Only) Forecast timestamp: ~14:30 UTC Timeframe: 15m Prediction horizon: 6 hours Model output: Central estimate (blue line): -118,036 Represents the AI’s best estimate of BTC’s near-term price direction. 80% confidence band (light blue): 117,507 – 118,220 The light blue zone marks the 80% confidence range — the most likely area for price to close 40% confidence band (dark blue): 116,886 – 119,191 The dark blue zone shows the narrower 40% confidence range, where price is expected to stay with higher concentration Volume on signal bar: 197.06 This chart shows a short-term Bitcoin price forecast using AI-generated confidence zones. Candlesticks reflect actual BTC/USDT price action in 15-minute intervals. This helps visualize expected volatility and potential price zones in the short term.
by karansgr
7
Survival First, Success LaterThere was once a stone that lay deep in the heart of a flowing river. Every day, the water rushed past it, sometimes gently, sometimes with force. The stone wanted to stay strong, unmoved. It believed that by holding its ground, it could outlast the river. For years, the stone resisted. It didn’t want to change. It believed that strength meant standing still, no matter how hard the current pulled. But slowly, almost without noticing, the stone began to wear down. The river wasn’t trying to destroy it. The water wasn’t cruel. It was simply doing what rivers do - moving, shifting, carving its own path. One day, the stone realised it wasn’t the same shape anymore. It was smoother now, smaller in places. It hadn’t won by resisting. It had survived by adapting. It had learned to let the river shape it without breaking it apart. The stone couldn’t control the river. All it could do was endure without letting itself be shattered. Trading is NOT so different. The market moves like a river. It doesn’t care if you want it to go left or right. It doesn’t reward those who stand rigid against its flow. It rewards those who learn when to hold their ground, when to let go, and how to survive the constant pull of forces bigger than themselves. This is NOT a story about rivers and stones. It’s a story about YOU. About learning to endure without breaking. About understanding that survival comes not from fighting the current, but from learning how to live within it. Much like the stone, every trader begins with the same illusion, that strength means control, that certainty can be conquered with enough knowledge or willpower. But time in the markets teaches you otherwise. It shows you, again and again, that survival isn’t about resisting the flow. It’s about learning to move with it, to protect yourself from the inevitable storms without being broken by them. And so, this is where the real story of trading begins. Trading often appears simple from a distance. You buy, you sell, you make a profit, and then you repeat the process. But anyone who has spent enough time in the markets will tell you the truth. This isn’t a game of certainty. This is a game of survival. The market humbles you early. It doesn’t care how much you know, how brilliant you think you are, or how much confidence you bring. The market doesn’t reward ego; it breaks it down piece by piece. Almost everyone starts with the same mindset. You want to win. You want to make money. You believe you can figure it out if you study hard enough, work smart enough, hustle more than the next person. But eventually, reality steps in. You begin to understand this game isn’t about knowing where the price will go next. It’s about knowing where you will stop, where you will cut a loss, where you will step aside and wait. The traders who survive are not the ones who chase perfection or seek to predict every move. They are the ones who learn how to lose properly - small losses, controlled losses. Losses that don’t bleed into something bigger, mentally or financially. Most people can’t do that. They fight the market. They fight themselves. They refuse to accept small losses, believing they can somehow force a different outcome. Those small losses eventually snowball. Blowups rarely come from one bad trade. They come from ignoring the small signs over and over again. The market isn’t cruel. It’s just indifferent. It’s your responsibility to protect yourself. Good trading isn’t loud. It isn’t exciting. It isn’t full of adrenaline and big calls. Good trading is quiet, repetitive, and frankly, a little boring. It’s built on discipline, not drama. Your job is to manage risk, protect your capital, and let time do its work. There is no holy grail. There is only process. A process you can repeat with a clear head, day after day, year after year, without losing yourself in the noise. Wins will come. Losses will come. Neither defines who you are. What defines you is how you respond. ⦿ Can you stay calm after a red day? ⦿ Can you follow your plan even after a mistake? ⦿ Can you sit on your hands when there’s nothing to do and trust the work you’ve already done? Patience, in the end, is the real edge. Most won’t have it. They’ll bounce between strategies, searching for certainty where none exists. They’ll burn out chasing shortcuts. They’ll forget that progress comes through small, steady steps taken over years, not through chasing big wins. Trading is a mirror. It reflects your fear, your greed, your impatience. It shows you who you really are. Ignore what it reveals and you’ll keep paying for the same lesson until you finally learn it. In the end, this game isn’t about the market. It’s about YOU. ⦿ Learn to protect yourself. ⦿ Learn to sit with boredom. ⦿ Learn to lose well. ⦿ Learn to wait without losing faith. If you can do that, the market has a way of rewarding you in time.
CME:BTC1!Education
by johntradingwick
7
Investment Trading Setup - Growth & Wealth✅ Investment Trading Setup – “GARP + RSI” Model 🧠 Step 1: Fundamental Filter (GARP - Growth at Reasonable Price):- Use screeners or research reports to filter stocks with: • Revenue Growth: > 12% CAGR (3–5 yrs) • PAT Growth: > 15% CAGR (3–5 yrs) • ROCE: > 15% • Debt/Equity: < 0.5 (or < 1 for capital-intensive sectors) • PEG Ratio: < 1.5 (Growth at a Reasonable Price) • Institutional Holding: Rising trend over last 2–3 quarters ✅ Example sectors: Specialty Chemicals, Private Banks, IT Product, Pharma APIs, Auto Ancillaries. I strongly advise you all to go for most mid cap and some small cap segments as major growth is expected from this 2 verticals. 📈 Step 2: Technical Entry (Monthly + Weekly RSI Confirmation) Once fundamentals are strong, check charts: On Monthly chart: • RSI(14) > 60 or crossing above 60 • Price breaking out of multi-month resistance or cup & handle/base On Weekly chart: • RSI(14) > 55 and trending higher • Volume > 20-week average during breakout week 🔁 Optional Add-On: Use 200 DMA and 50 DMA Golden Cross for extra confirmation. 🎯 Entry & Risk Management • Buy Zone: After breakout on weekly chart with confirmation of RSI • Stop Loss: Below recent swing low (weekly or monthly) • Pyramid/Add: On every 15–20% dip if fundamentals remain intact 🏁 Exit Rules • Major fundamental deterioration (falling ROCE, rising debt) • Technical breakdown below 200 DMA with heavy volume • Stock becomes significantly overvalued (e.g. P/E > 3x sector average + RSI > 80) 🧾 Example Stocks That May Fit This Model (as of mid-2025) ✅ Mid Cap Growth Stocks (₹10,000 Cr to ₹50,000 Cr Market Cap) Suprajit EngineeringAuto AncillariesHigh ROCE, consistent profit growth, global exportsKPI Green EnergyRenewable EnergyStrong revenue CAGR, solar EPC + IPP modelKEI IndustriesCables/WiresScalable, infra theme, strong profit marginsSona BLW PrecisionEV & Auto TechEV-ready, global OEM exposureJ.B. ChemicalsPharmaConsistent earnings, margin expansion, clean balance sheetNarayana HrudayalayaHospitals/HealthcareAsset-light model, expanding RoCE, high promoter skinSansera EngineeringAuto EngineeringDiversified clientele, improving marginsPolycab IndiaWires & CablesStrong infra push, leader in B2C wire segmentTriveni TurbineEngineering/Clean TechHigh margin niche business, export growtheMudhra Ltd.IT/Digital SignatureFast growth, unique niche (cybersecurity theme) 🚀 Small Cap Growth Stocks (< ₹10,000 Cr Market Cap) Ksolves IndiaIT Services/NicheDebt-free, high RoE, software exportsNGL Fine ChemPharma APIsHigh margins, good growth visibilityGensol EngineeringSolar EPCEV + Solar + Infra theme, fast-growingShivalik BimetalSpecialty AlloysHigh-tech materials, strong RoEHLE GlascoatSpecialty Chem/EquipLeader in glass-lined equipment, capex doneIndia PesticidesAgrochemClean books, exports-led growthGNA AxlesAuto ComponentsPickup in CV/Tractor cycle, strong balance sheetLa Opala RGConsumer DurablesHigh margins, niche player in opalwareDynacons SystemsIT Infra ServicesNiche contracts, high profitabilityZen TechnologiesDefence TechDefence theme, order book visibility 📊 Suggested Metrics You Can Track: • Revenue CAGR (3Y): >15% • PAT CAGR (3Y): >20% • ROCE: >18% • D/E Ratio: <0.5 • Promoter Holding: >50% (or rising trend) • Cash Flows: Positive from operations Note - I have provided you all with my best 4 setups used by big firm and I can assure you they are working for us for the past 18 years. Check my post in the profile - Setup provided were:- Positional Trading Setup Swing Trading Setup Stock Options Buying Setup And Investment Trading Setup above. I wish you all the best and am sure and confident that you will reflect and ponder on how simple techniques work. At Last, KISS - Keep it Simple and Systematic. Happy Trading! Faraaz T Sr. Ex. Financial and Equity Analyst Stockholm Securities
NSE:NIFTYEducation
by SwingAcademy
Liquidity Concepts & Smart Money Trading💧 What is Liquidity in the Stock Market? In simple terms, liquidity means how easily you can buy or sell a stock (or any asset) without affecting its price too much. 📌 Imagine This: You're at a crowded market and want to sell 10 bags of rice. If there are many buyers, you’ll sell quickly at your price. That’s high liquidity. But if only 1 buyer is there, you’ll need to lower the price—or wait. That’s low liquidity. ✅ High Liquidity Stocks: Easy to enter and exit Tight bid-ask spread High volume and interest Examples: Reliance, HDFC Bank, TCS, Infosys 🚫 Low Liquidity Stocks: Wide spread May not execute large orders fast Often in smallcap or SME segments Prone to manipulation So, as a trader or investor, liquidity matters because it affects: Speed of your trades Slippage (difference between expected and executed price) Risk of getting trapped in illiquid counters 🧠 Who is “Smart Money”? “Smart Money” refers to the big, institutional players who move the market silently. 🧱 Types of Smart Money: FIIs (Foreign Institutional Investors) DIIs (Domestic Institutional Investors) Mutual Funds, Pension Funds Hedge Funds Prop Desks (Proprietary traders of large brokers or banks) These players do not trade like retail traders. They have: Huge capital Access to better research Advanced tools and algorithms Patience to accumulate or distribute over days/weeks The power to create or absorb liquidity They don’t chase stocks. They build positions strategically. 🎯 The Relationship Between Liquidity & Smart Money This is where it gets interesting. Smart Money doesn’t want you to know what they’re doing. So they operate in stealth mode, using liquidity zones to enter/exit. Let’s break this down in real terms. 💡 Real Example: How Smart Money Uses Liquidity Scenario: Let’s say a mutual fund wants to buy ₹500 crore worth of a midcap stock. If they suddenly place a large buy order, the price will shoot up. So what do they do? They wait for panic selling, like during news, results, or false breakdowns. They create liquidity pools—zones where many stop-losses are triggered. Retail traders sell in panic, creating supply. Smart money absorbs quietly. This is called accumulation. Similarly, when they want to sell, they: Push price up with breakout candles Attract retail buyers chasing the move Slowly distribute their holdings Leave small players trapped at the top 🔄 Concepts You Must Know 1. Accumulation Zone Where smart money buys silently Flat or range-bound price action Volume slowly rising No major breakout yet 2. Distribution Zone Where smart money sells quietly Price looks strong, but momentum slows Volumes stay high Sudden rejections from resistance 3. Liquidity Grab / Stop Hunt A deliberate move to trigger stop-losses and create liquidity Often seen before real trend begins Can be traps for retail traders Example: Price breaks below support, then sharply reverses 📊 How to Track Liquidity & Smart Money Moves Here are tools and techniques used by traders: 📌 1. Volume Profile Shows where most trading has happened High Volume Nodes (HVN): Liquidity zones Low Volume Nodes (LVN): Price moves quickly Watch for consolidation near HVNs—could be accumulation/distribution 📌 2. Order Book / Market Depth For intraday traders Shows how many buy/sell orders exist at various levels Spikes in orders may signal liquidity traps or fake pressure 📌 3. Open Interest (OI) in Options Rising OI + flat price = buildup Long unwinding or short covering signals smart money behavior 📌 4. FII/DII Data Track daily net buy/sell figures Sectoral trends from mutual fund holdings FII selling = market weakness, especially in large caps 📌 5. Wyckoff Method (Optional but powerful) Focuses on market cycles Accumulation → Markup → Distribution → Markdown Helps understand the intent behind price action 🔥 Common Smart Money Setups ✅ 1. False Breakout Trap Price breaks above resistance Retail traders enter long Smart money sells into strength Price reverses How to Spot: Check volume See if candle closes above or within resistance Confirm with next bar’s reaction ✅ 2. Stop-Loss Hunting Price dips below support Retail SLs get hit Price reverses sharply with strong volume How to Spot: Sudden wick below major swing low Sharp V-shaped recovery Volume spike + reversal candle ✅ 3. Liquidity Sweep Before Rally Sideways phase ends with a big red candle Then reversal and trend begins This is smart money loading positions 🛠️ How to Use This in Trading (With Practical Tips) ✅ For Swing Traders: Identify consolidation zones with rising volume Wait for breakout or breakdown with volume Add volume profile to spot high-activity zones Check if OI is building around a strike in options ✅ For Intraday Traders: Track OI buildup + price action around round numbers Use Market Profile or VWAP to understand liquidity zones Watch for traps near open or just before close ✅ For Investors: Watch mutual fund buying sectors Use MF/ETF monthly reports for accumulation patterns Avoid chasing rallies—enter during base formation ✅ Final Thoughts Most retail traders lose money not because their analysis is wrong—but because they don’t understand the rules smart money plays by. In 2025’s market, where FIIs, algorithms, and institutions dominate, understanding liquidity and smart money behavior is not optional—it’s essential. You don’t need millions to trade like smart money. You just need the right mindset, tools, and the patience to wait for clean setups. 📌 Remember: “Volume reveals the truth. Price tells the story. Liquidity is the language smart money speaks.
BSE:SENSEXEducation
by TechnicalExpress