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Butterfly

Nifty 50 Tuesday Setup | Bearish setupNifty 50 price is near a very important support trendline and in the 2Hr time frame, we could see a XABCD bullish butterfly pattern. This XABCD pattern gives 3 targets once the price breaches 17650 and the support trendline. If the price trades below 17650 in the afternoon, we could see a fall. The RSI can be seen just below 50 and Choppiness Index near 61.8 could support rapid fall. The rise in VIX is seen today which means there could be larger moves yet to come. Until the market crosses 17780, it is difficult to see a big rally on the long side. Please refer to the chart for trigger levels and place for stop losses as per your risk appetite. This is not an investment idea. Happy trading. :)
NSE:NIFTYShort
by Sanjan91
ADANI POWER PRICE ACTION ANALYSISAdani power underwent a lot of correction recently but now took the support of a trendline. If the 113 level is crossed, then we might see the above targets. Here, the targets are forecasted by the XABCD bearish bat and butterfly patterns. This is a very risky trade considering the stop loss level being 20% below the buy level but highly rewarding if the trade goes right. So, to exit with less loss if the trade goes wrong, follow the trendline and exit when the price breaks this trendline and the immediate lower low. All the target and stop-loss levels are mentioned on the chart. Happy trading :) This is just for educational purposes.
NSE:ADANIPOWERLong
by Sanjan91
4
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
NIFTY INTRADAY BUY LEVELCurrently, in this choppy market like today, buying at supports and exit at resistance is preferred. Here, in my opinion, the best level to go long again in nifty is 17780, where put writers will support as well as XABCD reversal level will support. Be patient and do not jump in option buy positions as today is Friday. You shouldn't be stuck until Monday to exit. 17780 level may not come today but it will have a better risk-reward ratio and is good for positional trade as well. Happy trading :) This is just for educational purposes.
NSE:NIFTYLong
by Sanjan91
NAVIN FLUORINE INT. PRICE ACTION ANALYSIS. TARGETS FOR LONGSToday Navin Flourine broke out its previous all-time high with high volumes. Wait for the pullback if the price starts falling, can go long above 3890 and place stop loss at 3890. If the price sustains above 4015 then go long and targets are given by the XABCD bearish butterfly pattern's 1.27,1.414 and 1.618 extensions. Place the stop loss below 3890. Happy trading :) This is just for educational purposes. Trade responsibly.
NSE:NAVINFLUORLong
by Sanjan91
BPCL PRICE ACTION ANALYSIS. PRICE TARGETSBPCL is trying to break the resistance at 481, which has not been sustained since last year. If BPCL manages to stay above 481, then we can see momentum to the upside. Go long above 481 and place a stop loss below 440. This is a monthly timeframe analysis, so we can provide some time for the price to adjust in case of a fall. Add more quantity when the price comes to test the trendline on the chart. The targets are given by the XABCD bearish butterfly pattern. This is a very good risk-reward trade setup. Happy trading :) This is just for educational purposes.
NSE:BPCLLong
by Sanjan91