Bank Nifty Option Buyer using Al Brooks approach

[HappyDays]

I can't trade Bank Nifty due to restrictions.
I trade India Nifty every day. Both futures are rather intercorrelated.
India Nifty day range has been very huge since Dec 2020.
it is one of the best futures for day trading.

If you want to trade it from a small account, message me and I may be able to help you.

 

[maxinger]

Today is a very interesting day. BN futures gapped up at open and then crashed in the first minute. The crash was too large so as to push it into the red. 2nd bar on the 5 minute chart arrested the slide. This resulted in an opening range of 550 points. 3rd bar shot up to recover back to the opening price. This was a strong fBO on the downside. Some of my friends traded successfully this fBO. Later it made a new high for the day. The first 3 bars (more precisely, the first bar) being long, confirmed that it is going to be a TR day. This gave traders opportunities to trade in both the directions at the extremes of the range.

View attachment 256349

In a way, such a Wide TR day is even better than a trend day because, on a trend day you do not know where the trend could stop. But on wide TR days, you know the direction as well as the target.

I still faced some problems trading options on such day. For example at the higher end of the TR, the price lingered for sometime and it did go against my position when I purchased puts. This can cause some loss because I buy weekly options and they lose value fast.

let me comment on India Nifty.
5 Apr - day range was very high at 550 points.
IN was down decisively due to covid problem or whatever.

6 Apr - day range decayed to 230 points which was still relatively big.
IN was ranging.

 

[maxinger]

If you want to trade it from a small account, message me and I may be able to help you.

There is only one help which I need
(under ET CHIT CHAT thread).
it is about the MULTIPLE SCREENS windows rearranging after Unlock.
Unfortunately, no one can help me.

 

[sridhga]

Has it been confirmed that Brooks actually made good money trading? Not just selling trading courses and materials and what not, but from actual trading? I know nothing about the guy, but he sure gets talked about a TON on this forum, mostly by padu I guess lo. I guess I should read some of his stuff or watch his videos, if he is legit.

Thanks!!!

His approach just gives us a framework for understanding PA. It is working for me. I don't care if he made money through trading. I got my priorities in place.

 

[maxinger]

Today is a very interesting day. BN futures gapped up at open and then crashed in the first minute. The crash was too large so as to push it into the red. 2nd bar on the 5 minute chart arrested the slide. This resulted in an opening range of 550 points. 3rd bar shot up to recover back to the opening price. This was a strong fBO on the downside. Some of my friends traded successfully this fBO. Later it made a new high for the day. The first 3 bars (more precisely, the first bar) being long, confirmed that it is going to be a TR day. This gave traders opportunities to trade in both the directions at the extremes of the range.

View attachment 256349

In a way, such a Wide TR day is even better than a trend day because, on a trend day you do not know where the trend could stop. But on wide TR days, you know the direction as well as the target.

I still faced some problems trading options on such day. For example at the higher end of the TR, the price lingered for sometime and it did go against my position when I purchased puts. This can cause some loss because I buy weekly options and they lose value fast.

Now talk about 6 Apr the 2 very long candlesticks.
those were the time we wanted to profit from it.

you were using 5 minutes chart.
so you ended up with very long candlesticks.
lots of professional writers failed to spend thousands of hours analyzing and staring at the charts.
so for this case, you have to use a finer time frame chart ( 1 min or whatever)
(or smaller volume chart) to profit from it.
do note that in some cases, you have to use a coarser time frame chart.

 

[sridhga]

Now talk about 6 Apr the 2 very long candlesticks.
those were the time we wanted to profit from it.

you were using 5 minutes chart.
so you ended up with very long candlesticks.
lots of professional writers failed to spend thousands of hours analyzing and staring at the charts.
so for this case, you have to use a finer time frame chart ( 1 min or whatever)
(or smaller volume chart) to profit from it.
do note that in some cases, you have to use a coarser time frame chart.

Agreed. At open, I use 1 min charts. Then move to 3 min and 5 min charts.
But for day end analysis, I use 5 min charts. During middle of the day, 1 min charts are kind of haphazard.

 

[sridhga]

I would also like to add on one more point to the above. During slow times of the day (not at open), the last half minute or the last few seconds matter a lot in the formation of the 5 minute bar. This was also mentions in the book "Trading Ranges" in the chapter "Close of the Bar".

 

[maxinger]

Agreed. At open, I use 1 min charts. Then move to 3 min and 5 min charts.
But for day end analysis, I use 5 min charts. During middle of the day, 1 min charts are kind of haphazard.

great. being adaptable is very important.

 

[deepfkvalue]

If you like Al Brooks, also check out the PATs Trading. He learned from Al Brooks and simplified it into his own version.

 

[sridhga]

If you like Al Brooks, also check out the PATs Trading. He learned from Al Brooks and simplified it into his own version.

Thank you.
Will check this.