ArcherDAVIS

ArcherDAVIS Updated 

Currently short in the money 43000PE 19 JAN. Entry at Rs. 1076.

ArcherDAVIS

The global cues lately have not been the best and markets are correcting quite aggressively lately. BankNifty has corrected a little over 15% and Nifty close to 10% The pattern I am observing now is a triangle pattern, with both an upside possibility as well as downside. The trade plan: Bullish: Entry upon breakout above higher trendline (36,650) SL:...

ArcherDAVIS

Even though there is heavy liquidity in the market and that has been driving the markets significantly higher over the last year. Nifty has rallied over 100% since the low of March 2020. A lot of investors have made way more than average returns on their investment in this dream run. Those investors would like to retrieve their amazing returns to make use of the...

ArcherDAVIS

In times like these when markets are moving down so much from the high point, it is important to understand this chart. In a Bull market, the market consistently makes higher highs and higher lows. When the market starts moving lower, people start fearing an incoming bear market or a crash. But it is important to note that, if the market is down <10% from all...

ArcherDAVIS

The market has been correcting for the past several days and BankNifty has moved down 11.5% from the high it made in February. This has presented some good shorting opportunities. While the market trend in the very short term remains bearish and long term trend being bullish , there is heavy volatility on either side. After correcting for 4 consecutive sessions,...

ArcherDAVIS

Since Friday, the market has been trending downwards. Today, we seemed to have taken a pause and made an inside candle on the daily chart . Some key points from today's trade were, Bank Nifty closed below the key support of 35,000. There was large PUT open interest @ 35,000 which seemed to reduce drastically towards the end of the day. The market retraced upwards...

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ArcherDAVIS

Iron Fly is a non directional strategy that works very well in a sideways market. I was of the view that the market would be sideways for the reasons mentioned in the video. This worked very well for the weekly expiry and it is used very often in confusing markets such as this. This was one of my first attempts at vocally explaining strategies so I may not have...

ArcherDAVIS

Explanation on the chart. The price seems to be rejecting lower levels very sharply and seems to be consolidating above the 200MA on the 1 hour chart. 1900 is also a psychological level that is acting as a good support over the last couple of sessions. I would consider the current price to be a good entry point on the stock with a medium term perspective and...

ArcherDAVIS

Last week in the market, we were looking a possible breakout or breakdown situation on both Nifty and Bank Nifty. It turns out, it was a breakout towards 15,400 and 37,700. Now it looks there is a possibility of a false breakout as well. If the market fails at one at one end of the range, it generally tests the other extreme side. Here, we also have a head and...

ArcherDAVIS Updated 

As shown on the chart, the double top pattern has occurred 3 times in the recent few months. Each time, the market has corrected significantly. The entire second week of February, Nifty has been moving in a tight 200 point range, with buying coming at 15000 levels and strong selling at 15,250 levels. With the current levels of volatility and narrow contracting...

ArcherDAVIS

There were 2 strong indications to go short on Nifty: 1. M pattern (Double top) forming around 15,230. 2. TrendLine break and last kiss was also seen. The target logically was the last region of consolidation where I expected Nifty to find support, which was around 15,100. The market has been range bound since the post budget rally and is finding it difficult...

ArcherDAVIS

Markets have been in a correction mode for 4 consecutive days and the probability of further downside is very high. This is a good strategy to use when the market is trending in either direction. Use small sizes in volatile markets to avoid losses.

ArcherDAVIS Updated 

Explanation on the chart.

ArcherDAVIS Updated 

Ascending Triangle Strategy: Entry on the breakout of the resistance. The height of the triangle (2.45%) is also the target of the first target of the trade @ 3506. Stop Loss is 1% lower @ 3385. Giving a good RR.

ArcherDAVIS

The market saw a very quick and sharp recovery this week. Generally, when the market reverses in this manner, it is a sign of trend continuation. In this case, the larger trend is bullish. If the price is able to break the breakoutline marked on the chart, we could see an upside towards the previous highs. The next significant resistance points are around 30,800 -...

ArcherDAVIS

These are the factors that I personally take into consideration before placing a trade. These are personal views and every trader trades differently and considers different factors while planning their trades. Always follow proper money management and trade with discipline. It is important to have a clear head while trading to avoid making mistakes that you will...

ArcherDAVIS

This is an example of how I mark my charts while taking trades. Defensive trading strategies are very good for sideways markets. The indices around the world are sideways and not making any fresh highs or lows. The principle that I have explained on the charts is ideal for protecting your capital and has a higher chance of succeeding. When the price moves to...

ArcherDAVIS

200 DMA is a great simple strategy which provides good RR trades such as this one. The idea here is simple. Markets tend to be range bound 80% of the time, which is called the contraction phase. The other 20% of the time the market is breaking out, called the expansion phase. To win the game, it is important to understand the probabilities and play the...