What are the important points to keep in mind while taking the support-resistance in context?

Support and Resistance is one of the most widely used concepts in Technical Analysis. Support and resistance represent key junctures where the forces of supply and demand meet. In the financial markets, prices are driven by excessive supply (down) and demand (up).
• As demand increases, prices advance and as supply increases, prices decline.
• When supply and demand are equal, prices move sideways as bulls and bears slug it out for control.
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A support line refers to that level beyond which a stock’s price will not fall. A resistance line refers to that line beyond which a stock’s price will not increase.
Supply is synonymous with bearish, bears and selling.
Demand is synonymous with bullish, bulls and buying.

SUPPORT CONVERT INTO RESISTANCE (Vice-Versa)

Support = Resistance: Another principle of technical analysis stipulates that support can turn into resistance and vice versa.
Once the price breaks below a support level, the broken support level can turn into resistance. The break of support signals that the forces of supply have overcome the forces of demand. Therefore, if the price returns to this level, there is likely to be an increase in supply, and hence resistance.

While tracking the securities practically in live markets, sometime you come across to levels which puts you in dilemma that if that level is going to act as a support or resistance.
At such instances you have to look for the candle formation considering the volume participation.
• For a Strong support to break, confirm the breakdown with a healthy bearish candle with volume
• For a Strong resistance to break, confirm the breakout with a healthy bullish candle with volume.
This how you could avoid the fake breakouts. Also take 2-3 indicators in confluence to confirm the breakouts.
Retests are also a strong confirmation after a breakout or breakdown to enter a trade in the dominant direction of the wave

Last spike cost me 3% gain, overall weekly return now stands @4.5%.

Since last 2 expiry the banknifty was highly trending upside at the end of trading session. Trading the crucial breakouts and booking loss are important aspects of risk management in options writing.

#banknifty
#ironcondor

The above chart decepts the pirce movement of 39900CE, which I shorted for the #ironcondor .

Opening price was around 100, then came down to almost 3rs as the banknifty was flat till 2:20pm.
Then the buying pressure lifted it agin around 100rs intraday's resistance and then made again a low around 7rs to finally close at 130rs.

👉The thing is that we manged to book profit, since I didn't put a Stoploss or never do, just I book losses according to the change in OI at ATM strike prices, and belive me most of the time it works however during the ride your account might face losses to profits and vice versa,

But the change in OI gives you a prefect outlook when to exit,

Also taking the technical breakouts in consideration with the OI data, you will get the confidence to position your trades.

Shifted the near #ironcondor to 41400ce and 40000pe shorts, the net gain remain almost same as adjusted the premiums.

Holding the positions now will shift call to 41800 if the high is breached today.
#banknifty

40500pe and 41500ce shorts.
#ironcondor
Net gain now will be 5.7% by expiry.

#expirytrade
Book profit before the fall, and then deployed #ironcondor with 40500pe & 41600ce shorts. Net gain by weekly expiry will be 5.4%.

#banknifty
#optionswriting

#expirytrade
Shifted the #ironcondor to 40400pe and 40900ce shorts.
Net gain will be 4.2% for the week for no more adjustments.
#banknifty

Booked loss 1.8% for the week
Deployed the #ironcondor for next week expiry to 39500pe & 40500ce shorts, net gain will be 8.5%. Will try to book 4%.

#banknifty

If banknifty closes below 39500 by next weekly closing this will be a trend reversal signal for short term and we may see levels till 38200-37700.

The trend will resume above 40600 on next weekly closing.

A consolidation in a 1000-1500 points is expected by next expiry, The breakout of the upcoming consolidation will decide the next move.

#banknifty

Morning downfall cost 3%.
Shifted #ironcondor to 39000pe and 40000ce shorts, net will be 4.5% by weekly expiry.
#banknifty

DIWALI INVESTMENT PICK NO. 1

▶️ SMALL CAP PICK

> GARDEN REACH SHIPBUILDERS (GRSE) (NSE CODE - 5475)

~ BUY IN THE RANGE OF 225-235

THANK YOU 🙏
TEAM EQUISTAKE