Bank Nifty Option Buyer using Al Brooks approach

Tomorrow Saturday 8 pm Indian Standard Time, some of us in our telegram group are discussing the chapter on "Gaps". This is covered in the book "Trading Ranges". We read the chapter before we join the session. We conduct the discussion on zoom. Basically our telegram group is a reading club based on Al Brooks books.
 
vinc said:
wow, man! you'll be the first one ET knows about who will go down in history winning with AB ' approach' / whatever that is/,but..

can you please make at least 3 REAL TIME CALLS? JUST 3 :)) instead of 'after-the-fact' ''analysis'' of the charts..just three..am I asking too much?

i mean you are more then welcome to make 500 of them:)
More...



@vinc

The last two posts during the trading hour were directed at you. As I told earlier, I trade on BN options based on BN Futures chart. Today BN gapped down. In the very next minute, I bought PE and sold at a profit. This is a set up described by Al Brooks. "When there is a spike, you can buy above the bar or below the bar. The probability is 70%. Since it is high risk, you should trade small lots."


For 200 point fall in Bank Nifty, I gained 98 points on the option. I traded just one lot as it is high risk but high probability trade.

This is one of the 4 set ups that I trade as mentioned earlier.

Net Profit.png
 
@vinc

The above two posts were made during live market trading.
The rationale behind them is that the market is in TR. How did I know? Al Brooks described in this books that when there are many overlapping bars it is TR. So, I bought when it is at the low of TR and exited with a fixed target. Again Al Brooks rule is if it is in TR, BLSHS (Buy low, Sell High, Scalp)


So so far, during this week I demonstrated two trades during live market.
Please note that we lost one day during this week because of trading holiday in India.
 
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today India Nifty was easy to trade.

It went down before India stock market opened.
China A50 and Hangseng were already down.

It went down again a few minutes after India stock market opened.
 
On 16th April,2021

Bar 1 and Bar 2 formed OR which became TR. Moreover open was near to PDC and no gap. Entire day traded within TR. Fibonacci pivot lines provided support and resistance. Looked like a pure text book example




2021-04-16.png
 
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On 22nd April, the index gapped down and trended up from open. I missed to see it until it was late.
This phenomenon was well described by Al Brooks as I was looking for resistances and was looking for counter-trend trades.
This is where I need to improve a lot.



2021-04-23 Clear trend from open missed because index gapped down and trended up.png
 
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