Scalping

Opportuni/es

Trading Day 09 June 2020

Today was a very interes/ng day as the Day began on posi/ve note with Global Markets being
suppor/ve and Bank NiCy tested its high since Corona Time periods. Open Interest Spurt Quadrants
though not fully developed were poin/ng Bullishness and something similar though not accurate was
conveyed by VIX. But then as European Markets began to open our markets began to fall. The fall
con/nued and Bears completely knocked out the Bulls. The scenario changed from Bullish to Bearish.
Any posi/onal bullish trades must have burnt a hole in pockets of traders be it buyers or sellers. But
nevertheless short term trades especially scalps could have been profitable. I’m just a beginner a
doing only paper trading and that too with help of some expert friends. I will try to analyse some
trades but not sure whether they are correct or not. All I know is there is a lot of scope for
improvement. So help me by reviewing them.

Trading Opportunity 1

Time 9.45 AM
The day began on expected lines.
• Yesterday night American markets were rallying. NASDAQ closed at all-/me high on just
market sen/ment of recovery. Though the same sen/ment cannot be expected in our market
as we are in a different COVID stage but yes we can expect a support from Global markets.
• Also high PUT op/ons suggested strong support at 21000 levels
• We had a posi/ve opening and then market tested 21000 levels and created a low of 20960
but it didn’t sustain.
• This was the first hour of the day and market creates a significant por/on of its range during
this period. So having tested the Low, BN was supposed to move higher and form new high
or test exis/ng high.

At 9.45 following events occurred

a. Price crossed VWAP

b. It was a big green volume candle

c. RSI crossed 50 mark and entered Bullish zone

d. There was a VWAP Supertrend Crossover

e. VIX started decreasing aCer making a high at 9.36

f. DOW was flat

Ideally we should wait for next candle but with VWAP,PRICE and ST crossover all happening together
and supported by RSI,VIX I think it was a good trading opportunity.

So Entry 9.48

Stoploss VWAP of BN

Target: Day’s High i.e 21356 but with trail

Strike 21000 CE

Entry 510

Good target 530…

It went to high of 542. So trailing it to 540 would have been good.

Trading Opportunity 2

By 10.57 the picture was not something I would call Bullish but certainly posi/ve because of
following factors

a. Clear PUT domina/on in Q2.

b. Some CALL strikes in Q1.

c. RSI in Bullish territory

d. Price tes/ng next resistance zone 21500-600.

e. Some big green volume candles of order of 160K in immediate past.

f. Price above Supertrend for quite some/me

g. VIX decreasing since 10.42

h. DOW recovering from short fall

By end of 11.00 candle price came down with volume.

I think under such condi/ons it should take a support at super trend.

So ST at 21351. Price broke down ST which was not good. But s/ll I entered a paper scalp.

As ST was changed from Bullish to Bearish the target should be small just 10 points.

So Strike 21000 CE

Entry 630

Target 640

It got a high of 668 non next candle and I exited at 650.

This was a very risky trade I took though only on paper because there was no Stoploss. The Stoploss
would have been VWAP for BN but that was too low about 110 points lower on BN.

I prefer to consider Supertrend only when there is certainty. That can be in following situa/ons

a. Clear Q1 And Q2

b. High Volume candles in past

c. Price over/below ST for sufficient /me.

I think may be this is the reason I was biased to take this risky trade.

Trading Opportunity 3

Time 12.45

For this trade following is background

1. Developing Q2 with dominance of PUT

2. Some Calls in Q1.

3. Very very high volume and price candles at 11.51 & 11.54

4. Stable VIX

5. But Dow was falling

6. RSI in bearish zone

SO our BN started coming down.

Against all these factors though fall was expected but one bounce back from VWAP was expected. So
with this in mind. I planned the following

Entry: As close as possible to VWAP

Stoploss: Close below VWAP

Target: at least 20 points

Strike 21000 CE

Entry 625

Exit 650 aCer trailing.

This was easy scalp

But aCer this I had to be cau/ous as the Red volume in previous candle was very big.
Trading Opportunity 4:

Time 14.45

ACer 1.00 it was a clear clear trend reversal. Big Big Big red volume candles. You don’t need anything
else to confirm the bearishness.

Though DOW was against us but we were on a different planet.

VIX was increasing

RSI was decreasing

But at end of 14.45 the RSI touched 20 levels so perfect for RSI retracement.

So entry: on basis of RSI 20

Exit: RSI to get back to 30 or 20 points scalp

Strike 25800 CE

Entry 446

Exit 485. ACer trailing

Trading Opportunity 5

Time:15.00 hours

This opportunity was taken purely on Price basis. ACer such a bearish mayhem it is sell on rise.
And if price rises to ST then it has to bounce back as I explained in Trade 2.
All ST related condi/ons in trade 2 were followed so expec/ng a bounce back
Entry: Price close to ST
Exit : 20 points and then trail
Stoploss: Price close above ST
SO strike 21000 PE
Entry 475
Exit 520.
All these are just Paper trades and it would need sufficient skill to execute them properly. But
kindly review these trades.

Regards

Ishan Dwivedi