Trading PlayBook 03/10/2022
➡️ Sgx indicating a gap down open around levels of 16900
Bank Nifty Trade Setup -
🔵Bulls could look to initiate a long trade around levels of 38060 with a stop below📍37800
🔵 Alternatively bulls could look to buy dips around levels of 38300 on the formation of a bullish continuation pattern with a stop below📍38000
🔴 Bears could look to test a fade trade around levels of 39650 on the formation of a rejection pattern with a stop >
📍40000
🔴 Alternatively bears could look to test a short trade on the formation of a rejection pattern around the levels of 38300 with a stop >📍38600
Nifty Trade Setup -
🔵 Bulls could look to test a long trade > 17100 with a stop below📍16950
🔵 Alternatively bulls could look to add further delta >17480 with a stop below📍17350
🔴 Bears could look to test a short trade around the levels of 17280 with a stop above📍17350
🔴 Alternatively bears could look to initate a short trade on the formation of a rejection pattern around levels of 16950 with a stop above 📍17050
⚠️ Note
➡️Make sure to keep an eye on the advance decline ratio
☑️ Ideally I look at a ratio of 2:1 initiate a counter momentum trade
➡️Make sure to look to initiate long positions on confirmation of a bullish continuation pattern
☑️ Wait for the confirmation of a bullish rejection bearish reversal pattern before Initiating short positions
📍 Trading the indices currently requires using wide stops > 1.5 ATR
📍 Keep a close eye on the benchmarks for any change in the divergence
⚠️ Disclaimer
Information shared is for educational purposes only kindly do your own due diligence before initiating any trades
Wishing my friends a fruitful and profitable trading day 👍
Cheers ☕