Please see this one also... I HAD SEEN THIS PATTERN ALSO... But i didn't put it in the chart as it had already passed.
Now coming to your explanation... FIRST AND FOREMOST I AM NO EXPERT.. I AM JUST LEARNING STILL...
But as my mentor told me TRY TO KEEP THINGS SIMPLE and hence i try to use trend lines mainly to find support resistances... Other stuff like Fibo etc etc can come later for more clarity.
Technically speaking the upwards wedge was broken and it normally breaks on downward side.. So the fall was expected.. But such a big fall in 1 day and continuing into the next trading session is mostly NEWS BASED. The fall did not even retrace to test the broken support, which happens many a times.... But this went straight down...
So it is definitely possible to predict a fall, but not so HUGE...
Cheers
Greg
anbulina
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@gregferns, Hi Greg, That explains all, your chart is simple yet effective. Keep up the great work, Expecting more charts from you for selling side :) . All the very best..
Thanks... One question.. What will you be selling in ?? Futures or Options (buying puts or selling calls) ?
Just want to know as i am not comfortable as yet with options...
Also, i am trying to base my charts and subsequently my trades only if i see a really good trade setup.... with good RR ratio... so doesn't matter if it is BUY or SELL as long as it gives good returns is what matters.
anbulina
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@gregferns, actually i am still testing, as of now the safer side is buying put options. I will use 1 Hr chart with Fib, look for buying put options with Fib target 1.618 or 2.272 with price range of 0.50 with 2 lot, and add additional 10 lots if price comes to 0.10. and wait for the price to fall near the mentioned fib points. recent one which i took is BIOCON which was in uptrend for 6 Days.Bought 220 PE around 0.50 and add additional lot when price came 0.10. it went up nicely upto 3.made some good profit :)
Coming to Fibo levels, what do you mean by price range of 0.50 .. IS there any current strike price giving you a price of 0.5 ?? If yes, then i think it is very OTM price... but in the option chain of RBL Bank i am not seeing any such LTP... Or are you just referring to the price you would like to purchase at ??
anbulina
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@gregferns, Yes it the price of Put options, which i was referred for BIOCON. Please check for the 220 PE option pricing history so that you will have fair idea..For RBL its already fallen too much and OTM premium is higher and it may turnaround from the 450 level. its not good to take PUT option trade now in RBL..We have to wait for the high point with Doji or reversal confirmation to enter the put option trade so that we will make good profit once the scrip starts falling down..