BC NANDY SIR CHART PATTERN

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Subhadip Nandy
@SubhadipNandy16 3 years, 10 months ago 478 views

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I see a lot of traders following classical chart patterns . Being a pattern follower myself for some years , here is my advice to them as I feel some pointers will improve their accuracy . Again , this is not the only correct way but what I have learnt from my experiences

1. Volume confirmation is a must. Without the volume rules being fulfilled , there is no importance to the pattern

2. Understand where the pattern is taking place within the major price structure of the index/stock. An inverse head and shoulders bottom reversal occurs at market bottoms , not at market tops

3. If a pattern is valid, it will leap out at you from the computer screen . If it takes a lot of time for you to "see" the pattern , you are probably imagining things

4. Understand how the market players operate so that a pattern is created . Understand the psychological basis of market participants within the pattern . Best resource : Technical Analysis of Stock Trends by Edwards and Magee . You should read the book at least 10 times or more

5. A pro tip : Use line charts while searching for patterns . Bar charts or candlesticks will be confusing , a line chart consisting of only closing prices is much easier on the eye

6. Check whether major support/resistance zones exist after a pattern breakout. In short , check whether the breakout has empty spaces to run

7. Define an entry stop and how you will trail the trade once it get's going. Define when and why you will exit if something changes . Have your plan ready before you enter the trade.

8. Use modern indicators to support the pattern breakout. See whether a price breakout is supported by a momentum , volume or volatility breakout. If so , it adds weight to chances of success for the breakout

9. Last but not the least , use some for of money mgmt for initial position sizing and then scaling in or scaling out.
#bestofluck trading patterns :)

10. Trading patterns will need years of practice , there is no shortcut. The amount of time you spend and see the patterns working out will add to your experience . Took me 5 years to successfully trade patterns :)

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Subhadip Nandy
@SubhadipNandy16

Nifty fut : rising Lows and Highs, showing a megaphone or broadening formation on 15 min charts. Though a bearish pattern, here it seems has broken out. 11k CEs on monthlies seems badly trapped. As long as the CE is > 140, will maintain a strong bullish stance

EOD charts. Rising after strong accumulation and volumes. COI going up with rise in price. Can have a fast upmove anytime now till 11300. View negated below 10900

BNF 15 min charts : showing FLAG formation. Breakout above 22400, trade negated below 22200. Targets given in chart. Also higher highs and higher lows

BNF also strong accumulation yesterday. This model is also showing continuous accumulation since 16th. Almost same levels given in earlier tweet

Now there are broad positional views, or the context. Trades now will be based on realtime data , option analysis etc. But these analysis suggests keeping a bullish bias on the indices while trading now unless this data changes drastically

Subhadip Nandy
@SubhadipNandy16

Along with the levels, there is Trend Ratio.
Near 1 or below is bearish, near 2 or above is bullish
( this as per last day's closing).
If Trend Ratio is bullish, expect support at Balance or breakout above Upper level will mean rally will continue.

If Trend Ratio is bearish, look for break or Balance or lower levels .

On a bullish Trend Ratio if Balance breaks, expect all longs to be trapped . Can short with stop above upper breakout figure. And vice versa

Normally the Trend Ratios of both indices are in sync, a little bit of difference. But here BNF is bullish while Nifty is bearish. So, if playing bullish tomorrow concentrate on BNF, If playing bearish, concentrate on Nifty

Major Rule :
1. DO NOT play bearish is market above Balance
2. DO NOT play bullish is market below Balance

The Balance basically tells you which side is a bit trapped

As long as the market stays within the upper and lower levels, option sellers ( whether they have sold on friday or will sell tomorrow) are at an advantageous position and make money. Whichever side this level is broken, that side sellers will be trapped

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Subhadip Nandy
@SubhadipNandy16

Since 99% of my own trades are in options, the calls I give are also on options. I am of the firm belief, that a basic knowledge of option greeks is necessary for any trader aspiring to trade options. For this, there are numerous books and even more resources on the net/youtube

However, a trader trying to learn Greeks face the problem of information overload. The problems are mainly 3
1. Either the text is too mathematical
2. Or the explanation is too simple just skimming the surface
3. In some cases, outright wrong info ( specially on youtube)

I have decided to make a video on options greeks in which I will try to explain simply ( without the maths 😀) but will go a bit more in-depth so that the info is usable by traders doing actual trades

Spent the major part of today designing the ppt ( 40 slides), hope to upload the video in the next few days. I will also provide the names of other resources which I have referred in making the video so that viewers can refer those texts for a more comprehensive understanding.

The video will be from the view of a trader/practitioner and not just a theoretical discussion.

I sincerely hope starters will be benefitted from my effort 🙏

Subhadip Nandy
@SubhadipNandy16

Study this thread and then check the VIX charts and Nifty charts from 1st Oct 2018. There is a reason I am retweeting this now :)

1. IV > HV
2. High IVR
3. Sell strangles 2SD away

This is the crux of all complicated option selling strategies . Nothing so simple can work across all market conditions .
— Subhadip Nandy (@SubhadipNandy16) October 5, 2018

Subhadip Nandy
@SubhadipNandy16

A few observations after 1.5 months of launching the "Decoding Volume & OI" course. I will be speaking bluntly as usual. General observations, so kindly do not take it personally

Almost zero questions or discussions about historical high OIs, depressed OIs, volume blowoffs or the volume oscillator
Majority looking at the VolXplosion list and expecting magical trades

Ma and @gautam_icma have spent 10+ years with these concepts. So unless one understands, assimilates and watches the concepts on the charts on a regular basis, it would be IMPOSSIBLE for anyone to predict direction or quantum of move

As a result, one will get disheartened after a few months and move on to something new, looking for the proverbial next "holy grail"

THERE IS NO HOLY GRAIL IN THE MARKETS

Trading is not simple as 2+2 =4.

We have taught the concepts to the best of our abilities, we did not hold anything back. Now it's upon the user how much he practices the concepts and improves

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