Thinking of taking a short ride on the Nifty 50? Here's why I'm feeling bearish about it. So, there's this Bearish Orderblock (OB) lurking around 0.30% above the current price, hinting at a market reversal. But wait, there's more! The Bearish Fair Value Gap (FVG) is also signaling some downward action, possibly even before we hit that OB.
Now, let's talk strategy. Our entry point is 22343.70, a sweet spot where we expect things to turn south. And to play it safe, we've got our stop-loss (SL) set at 22637.55. As for the take-profit (TP) targets, we're aiming for TP1 at 21710.20 and TP2 at 20983.10. Feel free to cash out earlier if you're happy with your gains, and don't forget to trail that stop-loss.
Oh, and here's a pro tip: keep some cash handy for dollar-cost averaging (DCA) around 22526.60. This way, we're ready to tweak our position if the market throws us a curveball.
Our decision to enter the market is also influenced by Fibonacci retracement levels, particularly the presence of Golden Pockets, reinforcing the validity of our trade setup.
In summary, the confluence of technical signals, including Bearish OB, Bearish FVG, and Fibonacci retracement, strengthens the rationale behind shorting the Nifty 50. By adhering to prudent risk management principles and remaining adaptable to market movements, we aim to capitalize on potential downside opportunities effectively.
Note important thing: It could be that the market opens at monday and the market goes up, so we will wait a bit.
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You can also short at market if price comes in DCA zone!
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Important NOTE: It could be that the price fills the gap (so comes down) and then as many people will short, hit their sl and than go up, if 2 green (bullish) Candles close above this range than chance that we will see fast bullish momentum. Important level is 22500!!!
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22526.60 is an important level, when price crosses this level than we could see a bullish momentum after the price close above this price. So, note shorting would be only good in intraday time frame.
These confluences with Bearish OB, Bearish FVG, and Fibonacci retracement, strengthens the trade enough thats why i find it a very good idea . Lets see the Market on Monday
smarttrader012
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@jawadraza06, you have right but you must also see the condition of the market.
smarttrader012
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Please let me now, what you think about this idea?
vishyrana
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Did gap up n fell sharp, was a bull trap. Looks like a fresh entry to Shorts now, further upside is capped. Closing is below 22524 n bearish reversal candles.
smarttrader012
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Important NOTE: It could be that the price fills the gap (so comes down) and then as many people will short, hit their sl and than go up, if 2 green (bullish) Candles close above this range than chance that we will see fast bullish momentum. Important level is 22500!!!
thats why i find it a very good idea . Lets see the Market on Monday