A trader made 3crore from 3 lakh using this strategy-- Pivot Point Trading for Options

[Mohan]

This is the method by which a famous trader from chennai took 3 lakhs account to 3 crore in 2 years trading index options.

The majority of traders do options trading in banknifty and nifty. So, this is perfect for those who:

1. Want a tried and tested strategy
2. Want to remove emotions from their trade
3. Want to become a profitable trader

This method is not for those, who:

1. Do not want to put the effort
2. Want a get rich quick method
3. Do not want to manage their risk.

You will get everything and anything which you will need to trade this method.

What I expect in return?

Your Participation - share charts, ask doubts, help others on the way
and
Your feedback- apply this method and share your feedbacks.

So are you ready?

Let’s start

[Mohan]

A journey of a thousand miles begins with a single step.

We will take our first step by learning the basics , then we will move towards the strategy

The method that we are talking about is called ‘Pivot Point Trading’

Lets start.

What is pivot point?

[Mohan]

Rally/Decline

What is a rally?— price moving up

What is decline? --price going down

A single candle doesn’t mean anything

Higher high formation is called a Rally, see pic below

A lower low formation is called a decline, see below

What if there is no higher high or lower low formation, we say that trend has stalled

[Mohan]

Defining Pivot
Now we know what is rally and what is decline, let’s move toward defining what is a Pivot?

When 3rd candle breaks the high of 2nd candle, the 1 candle low becomes the minor pivot low ( mpl)

[Mohan]

minor pivot high

If the 3rd candle breaks the low of 2nd candle, 1 candle high becomes the major pivot high ( mph)

More to follow…

[Mohan]

Lets discuss some chart examples

It is very important that you understand these before we move ahead.

Have doubt? ask

[Mohan]

Here is the prebuilt indicator on TradingView which will mark Large Pivot High and Large Pivot Low for you.

If you have any question, now is the right time to ask.We will move towards the strategy part now.

[Mohan]

Continuing from where we left off

How to enter based on MSH/MSL

1. Enter on failed breakout
2. Enter after breakout and pullback.
3. Enter on breakout

Pic.

Here is how, you could have entered in today’s BankNifty chart.

Entry 1 is your Breakout entry and entry 2 is your Breakout PB

[Mohan]

Feel free to ask if you have any questions.

[Kittu]

sIR THEN WHEN TO TAKE ENTRY
1.WHEN THE 3RD CANDLE BREAKS LOW OF 2ND CANDLE ,THEN WHAT IS THE TARGET AND STOP LOSS(IN CASE OF BUYING PE)
2.WHEN THE 3RD CANDLE BREAKS HIGH OF 2ND CANDLE ,THEN WHAT IS THE TARGET AND STOP LOSS(IN CASE OF BUYING CE)

[Mohan]

StopLoss- Low or high of breakout OR breakdown candle
Target-- trail your SL or next Swing high or Swing Low should be your target

Note- just a personal opinion not a reco.

[Mohan]

What the other trader did was , trail the SL based upon small pivot high and low.
SO, If you had followed the complete rule, you could have captured the whole move yesterday.

[Mohan]

If you have any doubt till here feel free to ask Quickly, otherwise we will move toward more advanced concept.

Meanwhile some more examples of the same:

Market broker the previous LPL or MPL
and continued going lower, you could have captured the whole move if you had trailed based upon SPL/SPH

[Mohan]

Another Example, here exit is based upon exhaustion candle but entry remains the same

See how beautifully it is working

[Mohan]

Another Example

Pro Tip - Always buy ATM options if you are trading in the same.

[Mohan]

Another successful trade

Look, it is showing 1:3 but it will be much more because Options has gamma effect.

Meanwhile----some failed trades also coming your way.

[vk131377]

Sir
How to plot this through application

[Mohan]

Search for the name on the top left corner.

[vk131377]

Pls tell me what can i search indicator name

[Mohan]

Indicator name is there in this post,Refer second image

A trader made 3crore from 3 lakh using this strategy-- Pivot Point Trading for Options

H…