Nifty Trade Idea Aug 3 expiry
Based on the trade plan, market gapped down, so had to wait for price action till 10:15, could see that the price was compressing, waited for it and then traded it.
To explain the price action further, it was evident that market was weak from HTF, 75 minutes, but the LTF of 5 mins indicated an up move was just about to begin, based on the supports being continuously taken at yesterday's day low zone, too many buyers at that zone, candles expressed the same with wicks at the bottom.
It was evident indeed with the 3 candles marked, hammer, inverted hammer, and a pinbar kind of. Also in the 19400 CE options chart, it was evident the price was compressing on a 1-minute timeframe too. A similar triangle compression was observed. Hence the entry was punched with 1:2 SL and target. Trade completed at an ROI of 21%.
To explain the price action further, it was evident that market was weak from HTF, 75 minutes, but the LTF of 5 mins indicated an up move was just about to begin, based on the supports being continuously taken at yesterday's day low zone, too many buyers at that zone, candles expressed the same with wicks at the bottom.
It was evident indeed with the 3 candles marked, hammer, inverted hammer, and a pinbar kind of. Also in the 19400 CE options chart, it was evident the price was compressing on a 1-minute timeframe too. A similar triangle compression was observed. Hence the entry was punched with 1:2 SL and target. Trade completed at an ROI of 21%.
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