Gamma Levels and Observations Using GEX Profile: The GEX Profile provides critical insights into the underlying price action by identifying gamma-related support and resistance zones. Here's a breakdown of the key levels derived from the GEX indicator: 1. Resistance Levels: * 610: Significant call gamma resistance. Price movement above this zone often requires increased buying pressure as market makers adjust their hedging positions to counterbalance gamma exposure. * 605: A pivotal resistance level where SPY struggled to break above. This area caps bullish momentum as market makers' hedging activities intensify to maintain stability. 2. Support Levels: * 600: A major put gamma support level. This zone tends to attract buying activity because market makers may adjust their hedging positions to provide stability as the price approaches. * 595: The next gamma-supported area below 600. This level acts as a secondary buffer, absorbing selling pressure as gamma exposure decreases. Price Action and Gamma Interaction: * Today’s price action showed a clear respect for the 600 gamma support, reflecting increased hedging activities by market makers. This level stabilized the price as it approached, attracting buying interest. * On the upside, 605 gamma resistance acted as a ceiling, showing stabilization from market makers' hedging adjustments. A break above this level may indicate reduced hedging pressure and a bullish shift. Options Strategy Plan: 1. Bullish Scenario: * Strategy: Vertical Call Spread * Setup: * Buy the 605 Call. * Sell the 610 Call. * Target: Profit from a move toward 610. * Risk Management: Close the position if SPY drops below 600. 2. Bearish Scenario: * Strategy: Vertical Put Spread * Setup: * Buy the 600 Put. * Sell the 595 Put. * Target: Gain from a decline toward 595. * Risk Management: Exit if SPY reclaims 605. 3. Range-Bound Scenario: * Strategy: Iron Condor * Setup: * Upper Range: Sell the 605 Call, Buy the 610 Call. * Lower Range: Sell the 600 Put, Buy the 595 Put. * Target: Profit from SPY staying between 600 and 605. * Risk Management: Adjust or close the trade if the price moves outside the range. Selecting the Best Expiration Date for Options: 1. Short-Term Trades: * If you anticipate a quick move (1-3 days), use weekly options (closest expiration) to benefit from higher delta sensitivity and lower upfront costs. * For instance: * Bullish Trade: Use the nearest Friday expiration for the 605/610 Call Spread. * Bearish Trade: Use the nearest Friday expiration for the 600/595 Put Spread. 2. Medium-Term Trades: * If you expect the move to play out over 1-2 weeks, select options expiring 7-14 days out. This helps balance theta decay with enough time for the move to develop. * Example: * Bullish: Buy the 605 Call Spread expiring next Friday. * Bearish: Buy the 600 Put Spread expiring next Friday. 3. Hedging or Longer-Term Views: * For broader market hedging or if you're less certain about timing, use monthly options (15-45 days out). These allow time for the trade to develop and reduce the impact of time decay. * Example: * Buy the 610 Call (bullish) or the 595 Put (bearish) expiring in the next monthly cycle. Projection: * Bullish Case: SPY breaks above 605, targeting 610 with momentum-driven buying. Reduced selling pressure above this level may support further upside. * Bearish Case: Failure to hold 600 could drive SPY toward 595, as hedging activities intensify to counter selling momentum. Hedging Explained in Context: Gamma hedging impacts price movements significantly. Market makers adjust their positions based on gamma exposure: * At positive gamma levels like 605, market makers sell into strength, stabilizing price movements. This creates resistance. * At negative gamma levels like 600, market makers buy into weakness, supporting the price and reducing volatility. These dynamics allow traders to anticipate where market makers might influence price action. Trading Plan for Tomorrow: 1. Bullish Approach: * Look for a sustained move above 605 with increased volume. * Target: 610. * Stop-loss: Below 603. 2. Bearish Approach: * Watch for a break below 600 with strong selling pressure. * Target: 595. * Stop-loss: Above 602. 3. Neutral Strategy: * If price consolidates between 600 and 605, consider range-bound strategies like an iron condor. Disclaimer: This technical analysis and options strategy are for informational purposes only and should not be construed as financial advice. Options trading carries significant risk, and traders should conduct their own research or consult a financial advisor before making decisions.
*This is a new setup, better confirmed but very risky with a very tight stop. Be careful. We are at a strong support level. Get ready for a significant move. If BTC doesn't have an impact, we could reach a favorable price level. T1: 1.18 - 1.20 (protect trade) - 4 hour T2: 1.35 (partial or close) - 4 hour T3: 1.50 (close) - daily
This upper trend line of the channel has been tested twice before with this time being the third and possibly the one to break the channel. The curved / bowl pattern also suggests a further break out for PEPE Memecoin vibes on this 4Hr chart. Bars pattern I have plotted is speculative
This is a new setup, better confirmed but very risky with a very tight stop. Be careful. We are at a strong support level. Get ready for a significant move.
NIFTY will open flat or slightly gap up in today's session. After opening expected upside rally towards the 24750 level and this rally can be extend further for 200+ points in case nifty starts trading above 24800 level. Downside possible if nifty starts trading below 24450 level.
Sol has a possibility of retesting my support trendline between $160-175. I would aim for that confluence to buy spot or long it from there.
Price Action Overview: Current price: ₹532.15 , trading within the Wave 4 completion zone ( ₹526–₹570 ) as per Elliott Wave analysis. A deep retracement zone is identified between ₹495–₹505 , aligning with Wave C completion, where a bullish reversal is expected. Wave C indicates a strong potential low point for the next bullish leg (Wave 5). Key Levels: Wave 4 Completion Zone: ₹526–₹570 Expected reversal area for Wave 5. Deep Retracement Zone (Wave C): ₹495–₹505 Secondary buying opportunity if the price drops further. Stop Loss: ₹486.40 Hourly close below this level invalidates the trade setup. First Target Zone: ₹605–₹613 Logical resistance area for profit booking. Second Target Zone: ₹654–₹671 Higher-level target as Wave 5 progresses. Trading Strategy: Entry Plan: Initiate a buy near the Wave 4 completion zone ( ₹526–₹570 ) after bullish confirmation (e.g., bullish candlestick patterns or volume increase). Consider a secondary buy within the deep retracement zone ( ₹495–₹505 ), aligning with Wave C completion. Stop Loss: Place a stop loss below ₹486.40 to minimize risk. Profit Target: First target: ₹605–₹613 . Second target: ₹654–₹671 for extended profits as Wave 5 progresses. Risk Management: Scale into the trade cautiously to ensure favorable risk-reward ratios. Keep an eye on broader market trends, as a bearish environment can invalidate this setup. Potential Risks: Failure to sustain demand in the Wave C or Wave 4 zones can lead to a deeper correction. Broader market sentiment and sector trends may influence price movement. Disclaimer: This analysis is for educational purposes only. I am not a SEBI-registered analyst. Please conduct your research or consult a financial advisor before trading. #ArvindFashions #TechnicalAnalysis #ElliottWave #Wave5 #SwingTrading #StockMarket #TradingStrategy #InvestmentPlanning #MarketInsights #StocksToWatch #BSE #NSE #Fibonacci
nex target 975-990 for wave 5 in grand cycle wave 1 (big wave)
Trader Tom, a technical analyst with over 15 years’ experience, explains his trade idea using price action and a top down approach. This is one of many trades so if you would like to see more then please follow us and hit the boost button. We are proud to be an OFFICIAL Trading View partner so please support the channel by using the link below and unleash the power of trading view today! https://www.tradingview.com/?aff_id=109100
hello Investor's, Chart looks very promising as pattern is attractive for short & long term view. Already broken pattern with open low same on one day chart should blast with short correction. Trade or invests with strict stop loss. Patience is a game of investing returns.