Explaining Logic Behind 23800 PE Trade which went from 70 to 220 : 3X π’π₯π₯
Most Important Reason :- BULL TRAP (As Marked in the Chart Below.)
What is a Bull Trap..?
1) A Point where Most Buyers assume it's a Safest place to enter Longs.
2) These are i) Major Resistance Breakout ii) Trendline Breakouts iii) Late Buying and Exhaustion points where Buyers are entering in FOMO.
3) Once enough Buyers are trapped, we see a Sudden Sharp Selloff as we saw on Friday.
How Can we Identify such Bull Traps..?
-- Most Genuine way is Detailed Price reading, this comes from practice. More importantly, If a Buying is Real, it will Sustain at Upper range and not come back again and again to retest the same level.
If this is happening, something is mostly wrong.
How did we Identify Friday's Trap..?
-- We have Traded same pattern many many times and generally it unfolds in the similar way as it did on Friday.
-- Strong Put Accumulation zone, Based on Our OBR System. Biggest of Players Build Positions in Options and we can never ignore the Options Behaviour. Friday's Options Behaviour Indicated Sharp signs for the same.... and that's why we alerted many times about the sharp Selloff...!
The fall was Massive. And Setups like these are worth Studying.
We'll Keep on sharing such Beautiful Setups in Future also.
Stay Tuned. β
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#POSITIONAL
NIFTY 23800 PE (2 June)
CMP is 65-75
Can hit 98/120/150
SL 30
Plz Know and Manage Your own risks Properly.