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How To Identify Fake Breakouts? || Bull Trap || Anish Singh Thakur || Booming Bulls - YouTube
Channel: Booming Bulls
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Hello everyone
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My name is Anish Singh Thakur.
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Today I want to make a very important video for you,
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In which I will fake breakout,
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Today in market, market was going very bullish
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on first half,
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And many people must have bought that
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it鈥檚 a good breakout, market has taken pullback or
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It has been consolidated, it will go up
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and should have done loss.
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Let me tell that you that why taking a bullish trade today would not have been right.
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After today, when this thing would be repeated in the future,
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This will be of your use.
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Come on, let鈥檚 start.
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Why, how to identify this fake breakout?
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This is nifty鈥檚 today鈥檚 chart.
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Today market opens very strongly at 9:15
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After opening strongly at 9:15, what happens,
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The current resistance level which was there previously,
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That was this and the other level was this.
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Means, if you draw a horizontal line, then
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Nifty is never giving closing above this,
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it has not given,
See, at anytime before this,
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And this closing wise,
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that it has not even gone above this.
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Ok
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So, I want to make a rectangle box, like this.
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I want to make a zone like this, ok,
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Now this zone I have made in front of you,
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Now let me delete these lines.
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What is a bull trap?
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I will tell you today what is a bull trap.
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And
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how this fake breakout
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can help you take a sell trade.
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Market gave a breakout at 9:15,
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It consolidated and got one more breakout.
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Okay, in this breakout,
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closing wise,
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Market never closed above this right,
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But market closed.
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All people took buy position,
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a sell came and
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And again market
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went back to it鈥檚 territory,
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Gave closing as well.
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Now if in this situation,
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you don鈥檛 get follow up buying,
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If you don鈥檛 get follow up buying,
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Then what will happen with you?
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Market will crash very badly,
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You have to understand.
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So, this point,
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I am telling you,
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This is the point when market,
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told you,
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That market should go up from this point,
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But what did market do?
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In this candle, when it gives closing below zone,
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This gives you confirmation to do short,
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With me a very strange thing happened that
means, I
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traded, bought option put,
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My stop loss didn鈥檛 hit on chart
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but my stop loss triggered,
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I talked with Zerodha,
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They said that many a times,
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Chart is not able to capture, but it happens,
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They said that stop loss has hit.
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So, come, leave, I didn鈥檛 get any profit,
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I got loss only.
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But this trade, I became very frustrated,
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After that when I saw that my such a big target
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would have been,
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But, I don鈥檛 know, how my stop loss hit here only.
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I don鈥檛 know what happened.
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But, the most important thing here is
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to learn price action
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This price action whenever you are getting
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That the price is going out of the zone,
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And it is not getting follow up buying,
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And it gives closing inside the zone,
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This is the candle
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where you short.
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This is the candle,
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when you short a call
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Or buy a put,
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and,
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This is, we got to see a such big fall
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Ok.
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Is this the only reason for this trade?
No.
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This was the first reason using no indicators.
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The only simple indicator that I use is
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RSI.
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Now if you plot a line like this,
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What is there in this line?
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Are you seeing this line?
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Is this line being seen by you to be going upwards?
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You must be seeing, the line going upwards,
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Let鈥檚 delete it for one more minute.
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It鈥檚 seen by you?
Ok.
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Now do you see the, I will start from the same point,
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So here, this is it the same point,
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And if I bring it till the same point,
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then this is it the same point.
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Do you see this is the bearish divergence?
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Yes, this is the bearish divergence.
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Should you act on bearish divergence just like that?
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No, you should not act on bearish divergence just like that.
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You should wait
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for what?
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You should wait for a red candle
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to close inside the zone.
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This is a perfect
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trade in Nifty,
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Due to which we achieve such a big target.
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Alright
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So this is a what?
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Very, a very interesting phenomenon happened today,
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That鈥檚 why I felt that I learnt this,
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And I took action also,
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And I didn鈥檛 learn this,
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I back tested it many a times,
Today I
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took action on it,
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Today I forward tested it.
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So, what were its results?
I thought that I would share it with you,
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So I hope you understood,
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There were two strong reasons right now,
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A bearish divergence
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and a bull trap.
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This thing is called a bull trap,
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It鈥檚 not called a bull trap if it keeps on going upwards,
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But if it gives closing below the zone,
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Then we will call it bull trap.
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And it successfully gave you a target in,
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1,2,3, 15 minutes, 45 minutes, and
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Two candles hit your target.
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If you talk about previous resistance levels,
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then here near this,
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to all support levels, so this
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these were the support levels for us,
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These were full support levels,
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here also market stops after coming,
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here also a wick has been made.
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So here anywhere in this zone only,
We should have booked profits,
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See the risk/reward must be more than 1:2 here.
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Ok.
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So I hope you understood the
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reason of making this video.
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To just explain you
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about how this structure
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Has given us a bearish divergence
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and a bull trap,
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And how it gave us a confirmation at 12:30,
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12:45 candle,
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Of 15-minute time frame in the candle,
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It gives us confirmation also.
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Let us remove the drawings.
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Again let鈥檚 draw a horizontal line here,
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In this place we get a very good confirmation
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to short.
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I hope you people must have done short here.
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Alright guys, so I hope this helps,
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A little bit of technical analysis over here.
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Ok
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Come on
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Ok
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So I will see you soon in the next video.
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I will bring that mutual fund video as soon as possible for all the people.
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And psychology series will also continue,
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And yeah forex also,
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will share some good information on that.
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Ok guys, thank you so much.
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Bubye
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See you soon
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