Why we sold only CE's today ? A small 🧵 Collaborated with @AdityaTodmal
• BNF reversed from 32155 (low made on Mar'8) • One side rally to butcher the CE writers • Gap up opening by ~1300 points • From Mar'8 low till today open ~2800 point rally • 2800 point rally in just 1.5days • Trend on the larger TF still bearish
• Due to election results we decided no to carry any overnight positions • Selling PE on the back of 2800 point rally would have been disastrous due to unfavorable R/R • So we were very clear to short only CE's • But then need to follow the trend
• We decided to short CE at the break of first 5min candle • By 9.45 it started to reverse
• Spotted M pattern at the resistance and started shorting CE's thereafter i.e. post 12.12 hours
• Also BNF resisted at the weekly Channel BD re-test zone
• Patterns Made in BNF: 1. W pattern near lows, made on March 8, (near 32115 lows, which is also the 1st demand zone in weekly)
2. Flag pattern post the BO of W pattern https://x.com/niki_poojary/sta...
3. M pattern near the upper levels on March 10
• Hope this helped to understand the logic for shorting only CE's in today's expiry • If you found this useful, please do RT first tweet See past 🧵 here: @AdityaTodmal & @niki_poojary