Why we sold only CE's today ?

A small 🧡

Collaborated with @AdityaTodmal

β€’ BNF reversed from 32155 (low made on Mar'8)

β€’ One side rally to butcher the CE writers

β€’ Gap up opening by ~1300 points

β€’ From Mar'8 low till today open ~2800 point rally

β€’ 2800 point rally in just 1.5days

β€’ Trend on the larger TF still bearish
β€’ Due to election results we decided no to carry any overnight positions

β€’ Selling PE on the back of 2800 point rally would have been disastrous due to unfavorable R/R

β€’ So we were very clear to short only CE's

β€’ But then need to follow the trend
β€’ We decided to short CE at the break of first 5min candle

β€’ By 9.45 it started to reverse
β€’ Spotted M pattern at the resistance and started shorting CE's thereafter i.e. post 12.12 hours
β€’ Also BNF resisted at the weekly Channel BD re-test zone
β€’ Patterns Made in BNF:

1. W pattern near lows, made on March 8,
(near 32115 lows, which is also the 1st demand zone in weekly)
https://t.co/YGMfQ6TVQt
2. Flag pattern post the BO of W pattern

https://t.co/SqLs3Ve2nU
3. M pattern near the upper levels on March 10
β€’ Hope this helped to understand the logic for shorting only CE's in today's expiry

β€’ If you found this useful, please do RT first tweet

See past 🧡 here:

@AdityaTodmal
&
@niki_poojary

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