DAY 09 PRICE ACTION – REVISION CLASS | Vinbull Trading Academy

Good afternoon, friends. Welcome to the lifetime revision class. We are meeting after a long time, but now we will meet continuously and due to some YouTube issues, let's do some revision classes here instead. If you have any doubts, please do let me know. Good afternoon to everyone. Greetings. Radhe-Radhe. So , let's clear those doubts here, and if there is an agenda you want to revise today, we can do that. Greetings, Guru Ji. Namaskar. Is my voice clear? Please stay in a good network area. If you stay in the network, you will see it clearly and understand it better as well. Sir, we don't know when you come online. Om Sharma brother, when I come online. Where would the message have come? Look, you must have even received an SMS. Yes, right? Is it clear? Okay. If you have any doubts, please ask. Guru Ji, a sell candle formed at 24700, the data was also in favor, but the 24700 position is running in a loss. 24700, Vansh brother, was it a call or a put? Reversal? Okay, fine. Badri Prasad sahib has a good topic. Shall we discuss reversals—how we can catch them when they occur? First, let me log in to Sensibull so that you can see it clearly here. Hmm, hmm. Reversal is a good topic, and we see quite a lot of reversals, especially when the market is either at the top or at the bottom. So, it is a good topic, a good issue, a good agenda. If everyone is ready, we can continue with that. Right? And the thing with reversals is that the probability of making a higher profit is very good. Yes. Whenever we draw the trendline, it doesn't match yours. Maybe you are using the wrong method to draw the trendline. Right? Some questions, Guru Ji. How to compare the lower trendline? Reversals are happening a lot these days in the gap up/down strategy. Yes, we will cover the morning setup based on reversals too. Gagan brother, many people are asking about the morning setup as well. We will do the morning setup too. Let's go, there are more comments for the morning setup. So let's just do the morning setup, okay? Thank you so much, Lalit brother, to you too. There is an echo, Pramod brother. If you stay a bit in...What do you call it, the network area, then the echo will stop. Come on, let's understand the morning setup. Let's understand the morning setup in today's class, and we will also understand reversals. Correct? Let's take two agendas. Morning setup and your second agenda is reversal. After that, your third agenda will be. On which thread should I trade? Done. These are the most frequent comments. Right? So, the current agenda is morning setup and reversal. First, let's understand the morning setup. Look, listen to the morning setup carefully now. If you have any other agenda, understand this one too. This is also very useful. What is the method for the morning setup? First, understand the method for doing the morning setup. See, your market pre-opening starts at 9 am. Note that your morning setup will start right from 9:00. How will it happen? Uh, understand how it happens. Right? Morning setup, tomorrow is expiry and tomorrow it is even better. Yes, brother, okay. But look, the Bank Nifty that we told you about on live, the premium moved from that zone. Bank Nifty must have given something at least, and when I was on live, the premium ran above the thread four times . Aditya brother, when any price runs from above the thread itself, then keep a 10-point zone for it. In Bank Nifty, Bank Sensex, Bankex, a 10-point zone means that if the thread is coming at 320 and it is making a wick from 330, then take the trade right there, right? Many times what happens is, it doesn't touch and leaves earlier. So, the 10- point zone was made for that reason. So let's focus a bit on the morning setup now, then we will take your comments. Correct? First morning setup, morning setup only, right? And understand how to do the morning setup. Your morning setup starts from 9 AM itself. At what time? From 9:00 sharp. What happens early in the morning at 9:00? At 9:00, the pre-opening market starts and when the pre-opening market starts, it settles at 9:08. It settles at 9:08 early in the morning. Now we know at 9:08 whether the market has settled gap up, gap down, or sideways. We know this very well at 9:08. Does it become known or not? Everyone tell me. At 9:08, do you get to know where the market settlement has happened? Gap down, gap up, or sideways, meaning flat, this is known. It is known. I will also reply to the other questions you are asking. But for now, please understand the agenda. Of the morning setup. This setup is very good. If you understand this, you can do well with it. Right? Correct. Very good. Everyone gets to know where the market has settled. Alright. Now, what is the market condition? What is the market condition at 9:08? It will either settle gap up, flat, or settle down. Meaning gap down. We have nothing to do with that. I repeat, we have nothing to do with that . Whether it's a gap up, gap down, or sideways, i.e., flat. It doesn't matter to us. What do we simply need to look at? Let's take an example that Nifty is trading around 24760. Correct? Whether it settles gap up at 9:08, gap down, or flat. What will we do? We will add the call and put of that same level to our chart. The call and put of that same strike price, i.e., at-the-money, on our chart. Whether the market—let me repeat. Whether the market settled gap up, gap down, or if the market settled flat. At that time, at 9:08, wherever you see the Nifty index, just add the call and put of that at-the-money level . Correct? You have added the at-the-money level. Now let's take an example. Let's assume it is 9:08 now. 9:08. It is, and suppose Nifty has settled here in your pre-opening at 24760. So what will I do? I will...I will add the 24750 call and 24750 put to my chart. I have added it here. Correct? Now, how much time do I have left to take a trade? 7 minutes left for the market to open. Why is it left? Because your market will start at what time? To start trading at 9:15. Correct ? So I still have 7 minutes left. So within these 7 minutes, what will I do? Within these 7 minutes, I will set my lines on both premiums. I will set my lines on both premiums. Within 7 minutes. The way to set the lines is the same. We will go to the one-hour timeframe, and after going to the one-hour timeframe, wherever the price is—meaning it is not trading yet because it is 9:08. The video will be saved, the video will be saved. You can watch it later as well. Don't worry. So the market, I mean the premium is not trading right now. So wherever the premium is, let's take an example that this premium is at yesterday's closing of ₹ 140. I mean, it is right here. It hasn't even started yet. It will start at 9:15, at 9:15. So what I will do is place two resistance lines above the current price. Correct? I have placed two past lines and I will place lines below the current price. How many ? A minimum of two. If two are not available, I will at least place one. At least one will surely come up. Correct? There should be a difference of at least 30 points between the two lines you place on the downside. If it's more, that's fine. If a larger difference comes up, it's fine. There is no problem. So now what did I do? If you look here, I assumed that this is my current price. Before this, I placed one line at 75 and one here. Or if I want to keep a 30-point gap, I will place it around ₹ 110. So these are my two lines. Meaning, wherever the current price is, the first one is 30 points below and the second one is 30 points below that, at least. Regards. Regards Afsaan bhai, I have placed two lines below and two lines above. Wherever they appear above. There is no rule above that it must be 30 points. Wherever your line comes out. So if you look at the past line, your past line will also appear somewhere here, where? At this point, here, it will appear at 210, 211. Look here, we took the consolidation from here, the past one appeared here. After that, we took one higher, where is the second one? We took it here. So these are our two lines above. Now I will do the same thing in Put. The exact same thing, I have 7 minutes. I will finish both tasks in 7 minutes. I mean, I will mark the colors for both at the current price. Now see, in Put, there is only one line and there are no other lines on the downside, right? We will place two on the upside. We will surely find at least two above. So the first line, if I am at 30 points above, I mean you can place it anywhere above. Like your line appeared here. Okay? For the first one above, there is no restriction that it has to be 30 points. Your second thread came out here. If there are more , add another thread. Look, a third one came out here. It took the past consolidation. Correct? There should be at least 30 points below in Nifty. Now, whenever you choose an at-the-money premium, it will definitely be around ₹ 150. Now let's say I have placed my threads. Correct? In 7 minutes, I placed my threads in both. What will I do now? I will go directly to the 5- minute time frame. Both in call and in put. Correct? And I keep both premiums in front of me like this. How? Call on one side and put on the other. I have set the put premium here and I am setting the call premium here. Correct? And my threads are attached to both. We are on the 5-minute time frame. Now what will happen? Now, the market will start at 9:15. At what time? At 9:15. As soon as the market starts, the premiums will start fluctuating. This one will be moving up and down, and this one will be moving too. Correct? You don't have to trade at 9:15. Pay attention, the setup is very simple. You guys are understanding, right? Let me know by commenting. Yes. You are understanding this properly. Did you understand up to this point that we watched the pre-opening market from 9:00 to 9:08? We chose the at-the-money premium. Whether it settled with a gap up, gap down, or flat. Very good. You guys are understanding well. That's great. What did we do after this? We placed our threads on both premiums. Two threads below the current price. If there are two, then place two. You have to place at least two, and if there is only one, like in the put, then we will place only one. And if it doesn't appear in any, then we won't place it. Pay attention, if it's not appearing, don't place it. Many times you won't find a thread. Right? Because the premium has decayed. Now, how will your setup be formed? You came to the 5- minute time frame. The time is 9:15, and the market has started. This price is also moving up and down. This price is also moving up and down. Correct? At 9:20. At what time? At 9:20, at 9:20 am , your setup will be formed. Which side it will form, we will know shortly. You have both call and put premiums in front of you. Whether the market opens gap up, gap down, or flat. Note, even if it opens flat. Both premiums are in front of you. What to do now? Now you need to keep Sensibull open in one window. What do you need to keep open? Sensibull. What time frame should you use in Sensibull? Because you now need to figure out, since you've already added both premiums. You have added both premiums. Both premiums are running. One might be lower, one higher , or both might be moving sideways if it's flat; so you need to determine which premium will go up. That’s what we need to figure out, which premium will go up after the 9:20 candle. Which candle will move up after 9:20. When you know which premium will go up, you will buy that premium, right? Once you know which premium will go up, you will buy it. So you have done your analysis in these 7 minutes. But now you need to find out which premium will go up? Whether the call will go up or the put. Regardless of how the market opened, meaning gap up, gap down, or flat. Now the issue is, which premium will move up? So what will we do for that? Simply , we will keep Sensibull logged in for this. And what time frame will we keep? 5 minutes. Remember to keep Sensibull logged in. What time frame will we keep ? 5 minutes; the first data will appear in front of you at 9:17. At 9:17, the first data will appear in front of you here. Now, whose data will that be? That will be the seller's data. Everyone knows that the data we get here is from the sellers. How much call was written, how much put was written. Meaning how many calls were sold early in the morning and how many puts were sold early in the morning. Right? Now let's come to how your trade will be formed. First, you have to determine which premium will go up. At 9:18, 9:17 , the data comes in. Both are the same thing. 9:18, your trade is to be formed after 9:20 anyway. No problem. You have already added the premiums. You just have to figure out which one will go up , or if none will, then your trade will be set. So you will figure it out here. Now look, what is it now? Now I will tell you what kind of ratio will appear so that you get confirmation of the trade, that this one will go up or that one will go up. Correct? At 9:17, if you see here, where? On the 5-minute timeframe, if you see that the ratio has reached at least 1:10. It has reached at least 1:10. How much? 1:10 Meaning, below 1: 2, it should not be. It should not be less than two. If such a ratio comes, let me tell you. The call side opened. Suppose the call side shows 5 lakhs. The put side shows 5, 6, or 7 lakhs. This means what is this ratio? Below 1: 2, so your setup will not form. Note that your setup will not form. The morning setup, no premium will continue. Note that positions have come on both sides. They are approximately equal. What should you do ? Avoid it. What should you do? Avoid it. Then you will work on the normal price action that runs during the day. Right? Now how will you get the trade? Let me tell you. For the trade, you see data here, let's suppose the call side came to 10 lakhs. Let's suppose the call side came early in the morning at 9:17, 9:18, I am putting it at 9:18. The first data comes at 9:17, right? At 9:18, you see here that the call side has come, let's say it is 10-15 lakhs. Is that correct? 10 lakhs and the put side that is visible here, I will write it down, the call writer and put writer that is visible looks like 2-3 lakhs. Now if I calculate the difference, a 1: 5 difference will emerge, between 2 lakhs and 10 lakhs, there is a 1: 5 ratio, is there or not? 1: 5. So if call writers have come in more. I am not able to see the comments right now. I will check your comments later. For now, just understand this. So if the call writer has come in more. If the call writer is more, whose premium will go up? The call writer is more. That means the call premium has been sold. Early in the morning, the call premium was trading. It was sold early in the morning. So whose premium will go up? The premium of the one whose seller has come in less will go up. Meaning, the put seller has come in less, so the put premium will go up. I will tell you how to punch the trade later. Right now you are only determining the direction here . What did you do? At 9:08, you loaded the at-the-money premiums. What was the second thing you did? Between 9:08 and 9:15, you have set up the parameters for both. What is the third step? At 9:18, you need to check the 5-minute timeframe for direction to see which ratio is appearing here. So, at 9:18, you see that the ratio has come out something like 1: 5, 1: 3. It is above 1: 4, 1: 7. So, what you see is that the 'one', the side that is lower, is the premium that will go up. This is the confirmation. The side that came out lower here is the premium that will go up. Correct? I am telling you one more thing now. What I am talking about here right now is a flat market, meaning the market opened flat. Then I will talk about a gap up. How to do it in a gap up, and then I will also talk about a gap down. How to do it in a gap down? I am mixing the gap-up and gap-down strategies into this as well, so you get good momentum. Right? I will also tell you the method for negative data soon. Uh, Gaurav brother, I will tell you about the negative side too. So, first understand the flat market— that the market opened flat and the data came out above 1: 5. When it came out above 1: 5, let's take a call option as an example. If the call data is higher, whose premium will go up? The put's. Now, let's first understand the entry—how to take the entry. The put's will go up. So, I already have the put premium set up and ready. Now, what will I do? Suppose this candle that is running, this candle that is running, is the 9:15 to 9:20 candle. Let's take a 5-minute example; this candle closed here. Correct? Once it closes, what will I do with it? I will mark its top. What will I mark? I will mark the top. As soon as the 9:15 to 9:20 candle closes, I will mark its top , and as soon as the next candle, the 9:20 to 9:25 one, breaks above it, I will punch my trade. Keep in mind, as soon as it breaks out; do not wait for closing, no closing. For example, let's say it closed above here—suppose it closed here—and the next candle starts moving above this. Starts moving above this. So, you got two confirmations. First, that the ratio that appeared in the price action at 9:18 is above 1: 5. 1: it's 6, it's 7, it's 8, it's 9, it's 10. First, the confidence here is that the seller has earned from the premium I am going to buy. And the second candle also closed well. It is also breaking out above it. So, you should punch in your trade right here. Then don't think that this candle should also close, because the next candle will just fly away like this. Very fast, and then you will end up buying it much higher. No, as soon as the candle closes—let me explain again—the candle that is running from 9:15 to 9:20, let's say it closes right here. Correct, it closed here. As soon as the second candle moves above it, I will punch my trade. Then I will also talk about stop loss and target right now, on how to set stop loss and target in it. Is this much clear to you? Now let's come to how I will set my stop loss. So, let's take an example that suppose my trade is punched in at 110, 111 rupees. Correct? If my SL is in Nifty, it will be 15 points. If my SL is in Bank Nifty, then from where my price is bought, it will be 30 points, and if it is in Bankex, it will also be 30 points there. If my trade is in Sensex, then it will also be 30 points there. If my trade is in Midcap, then my SL will be 15 points in that, right? Where my entry is taking place. And then, if my trade is in Fin Nifty, then I have to do this 15-point work. You have to choose in this way. Whichever index you feel is right, you can trade in that. It is better that you do it in Nifty because Nifty has good volume. Sir, I work on this. Ravindra brother, you are working well on this, so how is it? Rajesh brother, please go into a better network area so it comes through clearly. How are the results turning out? Ravindra brother, you are working on this. So, how are the results? Meaning, are the results respectable? Ah Guru ji, should I mark the top of the candle or the top of the wick? If the candle forms a wick, should I mark the body? The body, as you asked a good question, let's say this is the candle. It went up like this and formed a wick here. It closed here, so you mark this because everything is in the body. There is nothing in the wick. Everything is in the body. As soon as it crosses above this, punch in your trade. Right? You can punch in your trade on this. The video will be saved. Don't worry. So, this is one of our methods. Now, we will place the SL manually. We will set our stop loss 15 points below where my trade is punched in. Talking about targets, keep a target of at least 30 to 40 points in Nifty, and at least 70 points in Bank Nifty, Bankex, and Sensex. So, this is one manual target of yours. The second way for targets is that at least for the first candle, suppose I punched the trade on the 9:20 candle. Right here, I punched the trade on the 9:20 one. Okay ? Now, when will this close? It will close at 9:25. I will take this entire candle. Wherever it goes, no matter how many points it moves. If this also closes with a full body. And if it breaks above this, then I will ride the entire 9:25 to 9:30 candle for the target. No matter how many points that is. So, this is how we can take our targets. What should you do in the beginning? In the beginning, wait for at least 30 points in Nifty and at least 70 points in Sensex, Bankex, and Bank Nifty. You get that much. Correct? This is one way. I hope you understood this. Did you understand this? Tushar brother, on spot or on premium? On premium, man, not on spot. Do we even do anything with the index? We have never done anything with the index to date. We have nothing to do with the index. We just use the index like an unwanted guest. You all know this. We only use the index for that reason. Oh man, tell me, what do you buy? Do you buy the index or options? Right? Making 1000-1500 daily with one lot. Ravindra brother, with this same strategy, that's great, man. It’s a good result . Tremendous. Fantastic, very tremendous. Right? What do we buy? We buy premiums, don't we? Where do we trade the index? The index traders are a different breed. That is their thing. Right? We never focused on the index. We only focus on it to choose the index strike price, to decide which strike price we need. So, we look at the index . Hey, where is the index? Suppose I want to trade right now. I want to trade right now. And what should I buy in Nifty right now? Which premium should I buy? For that, I look at the index to see where it is moving. I just add the call and put of that same index . Is this the correct way to use it? Now, this is your method for a flat market. For a flat market. Correct? Now , let me tell you the method for gap up and gap down. For what? For gap up and gap down. Let's cover gap up first. Suppose the market is opening with a gap up. At 9:08, you see that the market is opening with a gap up. What will we do now? We will do the same thing. We will add premiums for both call and put. Between 9:08 and 9:15, you will set the lines for both. One-hour lines, right? You will set one-hour lines for both. Ravi bhai is going to talk about reversal in a little while. Let me finish covering this first. Correct. How is the market opening? It is opening with a gap up. What will you do? Wherever it opens. Let's take an example. It is opening at 25,000. We will add both the 25,000 call and the 25,000 put. Correct? At what time? After 9:08 and before 9:15, we will set the lines for both. Lines are set correctly. Now, what to do? At 9:15, the market will open. So, if Nifty is opening with a gap up, whose premium will open higher? Whose premium will open higher? Call or put? Tell me. If the market is opening with a gap up, whose premium will open with a gap up? Call or put? This is a fantastic strategy. Try it once, you will love it . Call. Very nice. Are there CE/PE writers in stocks too? Absolutely, they exist. And they are not in all stocks. They are in select stocks that are in F &O. What if negative data comes in Sensibull for Futures and Options? Okay . And does this strategy work for stock options too? No, we have never tried it for stock options, so we have no idea. Very good. If the market is opening with a gap up, the call premium will open with a gap up, right? Let's take an example. It is opening with a gap up here. Okay? This was its closing yesterday. The last closing of the premium, and today it is opening around ₹ 211 here. Gap up is correct. Okay. Whose premium will open lower? If the market has a gap up at 9:08, whose premium will open lower? It will definitely be the put. We are just taking an example. The put premium is opening here. Where there is no thread at all. Pay attention. There is no thread. If there is a thread, that's great. But I am saying there is no thread. The put premium is opening so low. The threads are, I mean, gone as soon as it opens. In the first candle, the bottom gap up/gap down is happening , right? So the put premium is opening low. Now what will we do? Now pay attention. Now what will we do? It is a very amazing strategy. If you use this in gap up/gap down, you will remember me. Use it later. Just use it once. It is such an amazing strategy. Right? Now what needs to be done? You found out that the put premium is opening low, brother, and the call is opening high. Correct, the market started at 9:15. Now at what time will the data come to you in Sensibull? It will come at 9:17 or 9:18. Where will it come? On a 5- minute time frame. How many minutes? The data will come on a 5-minute time frame. The call premium is high. The put is low. You see it here. I will tell you what all you can see here. You see here first that at 9:18, at 9:18 the data that comes in front of you shows that your call writer has reached 10-20 lakhs plus. It has reached 10-20 lakhs plus. The put writer also came here, 10. 20 lakhs plus, equal and equal. Both are correct, they came equal, right? I will tell you now, I will explain all the conditions. Three conditions, I will explain all three. First, the data is completely equal. Now I am asking you one thing, in the morning during a gap up, the call premium opened high at ₹ 211, at the top, and early in the morning, the seller, the call writer, built their position. Meaning they sold it at the top. Meaning they sold the call at the top. Will the call premium go higher? Because when the market opened with a gap up in the morning, the call writers who did BTST were facing losses. What did they do? They sold more calls at the top. Meaning they averaged it out. Now will this call premium go up? Should I buy it? You should not. Because it won't go up. Why won't it go up? The simple logic is that the call writer averaged their position early in the morning. Meaning this call premium will come down. Now if this comes down, something will go up. Which one will that be? The put will go up. So where will your trade be? It will be in a put . Keep in mind, it should be a gap up and call writers should arrive. If it gaps up and call writers arrive at 9:18 , your trade will be in a put, and it will be so amazing that you will make a huge profit in the first trade itself. Huge, really big. Correct. This is the first way. Now, the second way. I will also tell you how to take a trade in a put simultaneously. Suppose there is a gap down and the put premium has opened somewhere here. Let me clear this once and explain again. The market gapped up , and the put premium has opened lower. Let's suppose it opened somewhere here. There was no movement here at all. It opened exactly here. Now, the data will come to you at 9:15 or 9:18. At what time will it come? At 9:18. At 9:18, right? What do you have to do? You have to mark its bottom. The put that has opened lower. The bottom of the put, because you must also know your stop loss. You can't just take a trade like that. Let's assume the bottom of the put is at 50 rupees. Right, at 9:18, as soon as I see data that suggests call writers have arrived after a gap up. I will punch my trade right there without waiting for any candle closing. My trade will be punched between 9:19 or 9:20. At what time? At most, my trade will be punched after a minute or two. Because once I get the data and it looks like that, what will I do? I will punch the trade immediately. There is no talk of price here, like what the price should be. Or which candle should close. Because by the time you think, " let's wait for this candle to close." It will create such a long wick from below and close 50-60 points higher. So when it closes 50-60 points higher and then you make your trade, you've missed out, 50-60 points are already gone in the first 5 minutes. So what should you do? As soon as the data looks like this , the market gaps up and data at 9:18 shows this, you can punch your trade with immediate effect on the premium that is at the bottom, meaning at the put's bottom. So you can punch your trade in that on the running candle. On which candle? On the running candle. And I can say with certainty that if the market gaps up and the call writer enters, this premium will start forming a wick from below, guaranteed. Which one? The put. It will start forming a wick from below, guaranteed. Now, if any premium—let me explain again. Now , if any premium comes down and starts forming a wick from below. I repeat, if any premium is forming a wick from below at any price, what does that mean ? It simply means that this premium will go up. So, punch your trade on the running candle. After that, the bottom it formed. For instance, suppose it opened here, it opened somewhere— let's show you today's example. Let's show you the put premium of today and explain it accordingly. Today at 9:15, where it opened, where did the put premium open? What time is this for? This is for the 27th. This is at 9:15. Look at this one. Look at this big candle here. What did it do? Where did this premium open? It opened here, right here. At 113 rupees. It opened at 113 rupees. At 113, at 9:15, it opened. Right here, right here; now it formed a wick right from here, it formed a wick from right here. So what will happen? Below this, from where it formed the wick, keep a 15-point stop loss and then you can keep a good enough target. Keep it at least up to the resistance line; for example, if the line is coming out at 170 above, then I will set my target up to that point. A green candle forms, from below, your red from below. First, it will open red, it will immediately crash down as red, right? It goes straight down like this and forms its bottom, and if it's forming a wick from right there, your trade should be punched right then. It will give you the target in a single candle within 5 minutes, in just one candle, and then just relax and enjoy, no need for anything else. Even if the SL hits, you'll only lose 15 points. Punch the trade while it's moving and just sit and watch; it's not necessary to set a stop loss. As soon as you see a 15- point loss, just exit. It doesn't happen, but if it does, the premium that opened low shoots up towards the top. Whenever you want to try it, yes, it will be the same, it will be the same. Try this strategy whenever you want. If a premium opens lower and the market gaps up, and sellers enter the gap-up premium, then the premium that opened lower shoots up. Keep the target in this way: for the upper threads, or at least keep the manual target: 30 points for Nifty, 30 points for Midcap, 30 points for Fin Nifty, and 70 points for Bankex, Bank Nifty, and Sensex. At least keep this much. So, did you understand this method? After this, I will explain the gap-down scenario. Did you understand this method? You don't need to wait for the candle to close in this. Let me summarize it again. Let me summarize it once more. At 9:08, the market settled with a gap up. Let's assume Nifty settled at 25,000. Gap up. The call premium is opening higher. Let's assume it's opening at 240-250 here. Yesterday's closing was, let's say, at 140. Correct? The put premium is opening lower. Yesterday's closing was, let's assume, at 140. Today it is opening. It is opening here at, let's say, 70. Correct? You saw in Sensibull at 9:18 that the data appeared like this. The call premium opened higher and call writers came in with 10, 20, 30 lakhs in plus, correct, and put writers also came in plus. Put writers also came in plus, they also reached 10-20 lakhs, so what does this indicate ? Even after a gap-up opening, call writers are building their positions. Despite opening with a gap up, if they are building their positions, then the call premium won't go any higher. When will we profit? When the call premium goes up, if we buy it, but it is already opening higher. So, how will it go further up? When a seller has arrived here, then who will go up? The put premium will go up. As soon as this premium starts forming a peak from 9:15 . I repeat, the market opens at 9:15. As soon as this premium starts forming a peak, you wait for two minutes. Wait for 3 minutes. If you wait for 3 minutes. The data will be in front of you at 9:18. Your trade should be punched by 9:19 or 9:20. Within this, in 3 minutes, it will give you confirmation whether a peak is forming or not. It will comfortably give the confirmation within 3 minutes. Now, if that same premium jumps from 70 to 200 in 3 minutes, then just let it go, thinking, "Man, it exploded before my entry was even set." Right? But yes, if it goes from 70 to 100, your setup will still form in this. Even if it runs up 30 points after forming a peak, the setup will still hold that it will go higher from 100. This premium will go up to 170 or 200. Yes, Afsan brother, I am teaching the morning setup. So, this is the method. Now let's come to what else needs to be understood in this. There is more that needs to be understood in this. What needs to be understood? Understand that. This was about your put premium opening at the bottom and the call writer coming in. Correct? If the call writer comes in, your setup in put is formed. Now, suppose some data like this comes after a gap-up opening. The market opened with a gap-up, and at 9:18, the call premium opened at, say, 240, and the put opened lower. Correct. Data came at 9:18. Call writer -10 to 20 lakhs, put writer +10 to 20 lakhs. What is this saying? The call premium opened higher and the call writer himself is in the minus. The call premium opened high, and at 9:18, you saw that the call writer is in the minus. Where did you see that? In Sensibull. Where did you see it? In Sensibull on the 5-minute timeframe, that the call premium opened high and the call writer came into the minus. What does this mean? It simply means, minister, that the call writer is booking his loss. The call writer is booking his loss. He is exiting, so then what will happen? The call premium will go even higher. What should you do in this condition? Let the 9:20 candle close first. Mark its top. When it breaks above that, take your trade because this premium is already high. So there is a bit more caution needed here. It is necessary to be careful because it opened high. Our entry is going to be formed at the top. So, let the candle close for sure so that we don't get trapped. When the second candle moves above it, keep a manual stop loss of 15 points and a manual target of 30 points. Yes, absolutely, it came into the minus. Now there is one more method in this, what is it? You guys are understanding this very well. Very good. That's why I really enjoy the lifetime course. Do you know why? Because you have already understood this topic before. Your revision is happening. Now understand one more. Assume the call premium has a gap-up. The put premium has a gap-down. The data comes in front of you at 9:18. Call writers at plus 20-30 lakh and put writers at minus 10-20 lakh. I am giving you an example. This put data came in negative. The call data came in positive. Now, why did the put data come in negative? Because when the put premium came down, the put writers booked their profit. The sellers of the put booked their profit. That is why this put data came into the negative. The put writers who carried BTST positions in the morning are making a profit, so what will they do? They will book their profit, right? And when they book it, what will they become? They will become buyers. Brother, they have to buy at a lower price for their profit to be realized. So what will happen because of this? What will happen because of this? Tell me. Which premium will explode upwards? Which one will be the rocket? The put premium will shoot up. If you find such data, then keep a target of at least two to three times. Yes, keep a target of two to three times. For the trade, you don't need to wait for the candle to close on the premium that opens lower. The trade should be punched in the running candle itself at 9:19 or 9:20. The data will come at 9:18. Your trade should be punched within a minute or two after that. You will see the wick forming right in front of you. Is that correct? Because positions were built up in the call. Sellers built up positions in the call from the top and booked profit in the put. Meaning, the put premium has been released, sir. And once it is released, what will it do? It will shoot up; the put premium opened lower and then surged upwards rapidly. You will end up making a very strong profit. This happens; if you look at gap-ups and gap-downs in a month, this happens many times. After practicing, your projection seems very simple. Very good. Very good, Anand brother, tremendous. Isn't it? So in this way, now let's move to another method. Have you understood all these methods in this? Did you understand all these situations? Very good. Now we come to gap-down. To what? Let's come to the gap-down condition. The market only opens in three ways, right? Either gap-up, or gap-down, or flat. At 9:08, you see that the market, yesterday's closing was 25000, sir, today it is opening at 25800 or 25850. It is opening at, meaning a gap-down. The market is opening with a gap-down, is that correct? Now that it is opening with a gap-down, what should we do? Simply put the 25800 call and 25800 put on your chart. From what time to what time? Between 9:08 and 9:15. We have set it up, and after setting it up, we also placed horizontal lines on both premiums, on both. Placed lines on both , equally. Yes, keep it at-the-money, at-the-money. Badri Prasad Sahab and Brijesh bhai, yes do you see it at 9:20 , Bharti bhai? No, if you look, the data comes in at 9:18, 9:17. Check it, it definitely comes in, there is no issue with that. Now, a gap down is happening. Now tell me, if a gap down is happening, whose premium will open higher? If the market is gapping down, whose premium will open? The put's premium will open higher, sir. Whose will open lower? The call premium, the CE, will open lower, sir. It will open lower. Now what do you see at 9:18 in the morning, right here, that your call writer is in the negative, call writer is in the negative by 10-20 lakhs, and your put writer is in the positive by 10-20 lakhs. Right, whose premium opened higher? The put's. Let's take an example, suppose it opened at 200. Yesterday's closing was 100, today it opened at 200, it already doubled, and the seller for this came at 9:18, for the put. Put writer in positive, call writer in negative. Whose premium opened lower? The call's, and let's assume, suppose it opened at 70, opened at 70. It's just an example, and you saw such data. Like what? That the one which opened lower is in the negative, and the one which opened higher is in the positive. What does this mean? The one you see in the negative, its premium will shoot up. Meaning if there is a gap down and such data comes at 9:18, then in the call, your premium, which opened lower, will shoot up. What should you do? As soon as you see this type of data, immediately punch your trade in the call premium during the running candle between 9:19 and 9:20. And keep a big target. If it is in minus-plus, then not a small one. Keep a big target. If it is in minus-plus, then your target should be a big one. Correct? This is how it is for you. It is the same. Just as you understood in a gap up, in a gap up the call writer came in and the put writer went into the negative. In a gap down, the put writer came in and the call writer went into the negative. Meaning, the premium that opened low has gone into the negative. So, what does this mean? The seller who opened low is booking their profit, right? So, that premium will explode upwards. You should build your setup on that. Is that correct? That is one way. Now, let's come to the second way. The second way is when you see both have come into the positive. The put premium has opened higher. Both the call and the put are in the positive. Now, the thing to think about is that the put premium opened higher. Still, this put writer has come into the positive at 9:18. What does this mean? It means the put writer is not exiting but is averaging their position at the top. So, will the put premium go up any further? It will not. In this condition as well, only the call premium will go up. So, you can build your position in the call comfortably and easily. What to do in this condition? When you see such balanced data, let the first 9:20 candle close so you get confirmation. Let's suppose it closed here. Mark its top. When it moved above that, we punched in our trade. Is that correct? Gaurav brother, are you understanding this? The morning setup is a different concept; that is to identify the full-day trend. Right? When you see such a ratio, now tell me, if you see such a ratio anywhere, where the premium that opened higher—meaning the put premium opened higher at ₹ 200 in a gap down—and you see here, sir, that the put writer is negative by 10-20 lakhs and the call writer is positive by 10-20 lakhs, the put premium opened higher, but the put writer itself went negative! What does this mean? Hiran brother, I will let you know about the next offline session . We will update you when the setup is ready. There is some municipal construction work going on there right now. So, it will take one or two months . There was an old, dilapidated building that they demolished. It was right next to ours. So, everything there is in a mess. There is a lot of dust and chaos. That is why we have postponed it for now. Right? Gap up, gap down, Litan brother, there should be at least 100 points in Nifty, at the very least. Now tell me, tell me, the put premium opened higher, the put writer itself went negative, which premium will go up? Which premium will go up? Let me repeat: if the put premium opens with a gap up and the put writer goes negative at 9:18, which premium will go up—the call or the put? The put will go up, exactly CM Patel bhai, because the put seller booked their loss here, so it will rise even further. In this condition, what you should do is mark the top of the 9:20 candle wherever it closes, let’s suppose it closed here. When it breaks above that, punch in your trade at 9:20 because you are entering a trade at the top. You are making a trade, but at the top, so you need to be extra cautious in this condition; at least let the 9:20 candle close. Then, when the premium rises further—many times it happens that a premium opening at 200 is seen at 300 a little later. This happens. So, this is the condition on that day: whichever way it opened, it went into a loss for you and you cut it . Then you have to mark the high of the 9:20 candle, and when it breaks above that, you punch in your trade. Then keep your SL the same. Can we mark the wick? Royal Pandit bhai, you definitely can. Haven't seen you in a long time, man. You don't come on live, Royal Pandit bhai. What’s the matter? It is visible here. Yes. So this is the situation, and this is a very amazing strategy. Watch this video again. If you watch it again, you will understand much better how I have to work. That is why I write and teach. Correct? So, in this way, I have included all three conditions—gap up, flat, and gap down —in the morning setup. Right. Now let's come to reversal: how to identify a reversal? I am adding the next part to this. How to identify a reversal? What to do for a reversal? Understand this first. Look, what do we call a reversal? First, understand what is even called a reversal. Would you call it a reversal if, let's say, the market is trading positively, Nifty is up by 100 or 200 points, and it goes up from 200 to 300 points—is that a reversal? No. A reversal is when it was trading 200 points up and came down, or became flat, or went 100 points lower. This is what is called a reversal. Suppose the market is trading 200 points negative or 100 points negative on the downside, and it recovers 200 points from there, going another 50 points higher. That is what you would call a reversal, right? The market eventually turned flat. Yes, that happened yesterday. Absolutely, Preeti ji. This is exactly what is called a reversal. Now, understand how to catch it. Suppose the market is trading 100 to 200 points lower. Correct? Now, tell me, if the market is trading 100 to 200 points lower, whose premium will be at the top? Will it be the call or the put? If the market is trading 100 to 200 points lower, whose premium will be at the top? Vipul bhai, yes, you can do it with a single lot. Whose premium will be at the top? If the market is trading 100 to 200 points lower, the put will be at the top, right? It will definitely be at the top , brother. If it is trading in the negative, the put premium will definitely be at the top, no doubt. Correct? Now, if a premium is at the top, should we buy it? If a premium is at the top, should we buy it? We should not. I repeat, we should not. The premium is already at the top, brother; what would we even get by buying it? We should not. Now, you see that the put premium is at the top and the full-day basket indicates a put setup. Meaning, in the full-day basket, let's assume the call writer is positive by 5 crores . And let's assume the put writer is at 20-50 lakhs. It's at 20-50 lakhs. So, what is this setup? This is a put setup . The direction in the full-day basket is definitely for a put. The direction in the full-day basket is definitely for a put. And the put premium is running high. Correct? Now, what is at least 20%of 5 crores? Keep it at least 15 to 20%. How much is that? If we take 20%, it is 1 crore. Of 5 crores. 5 crores of what? Of the call writer. I am explaining the story of a reversal. If we take 15-20%of whatever the call writer amount is; like if we look at it now, there's about 3 crores of call writers visible in the full-day basket, right? And if we take 15-20%of that, how much does it come to? If you take out 20 points, assume that 20%of it will come out to be around 50 to 60 lakhs. You need to extract 15 to 20% more of whichever is higher. What will you do with this position? Your trade is not working right now because the put premium is trading at the top. Brother, where should we buy this at the top, and which one will be at the bottom? The call premium will be at the bottom. It must be trading at the bottom. So, in this condition, keep an eye on the 5-minute candle. Of how many minutes? Keep an eye on the 5-minute candle. And here you see that 1 crore positions have been cut. What do you see? 1 crore positions have been cut. If it is 5 crores or 3 crores, then 50-60 lakhs of positions have gone into the negative. Like it is currently showing 20 lakhs have gone into the negative. Meaning, if we look at it, roughly 8-9%has been cut. From the full-day basket, the call writer has been cut by 8-9%. Right? So in this condition, as soon as you see 15-20%of positions being cut on the 5-minute timeframe. Whose should be cut? If the market is trading low, the call writer's should be cut, and if the market is trading high, the put writer's should be cut. Only then will a reversal happen. So, if you see 1 crore positions being cut like this. It was cut yesterday. We couldn't catch it . Although, if we were live, we wouldn't have been able to catch it that quickly. We wouldn't be able to see everything that quickly. Look at people's premiums, look at this, look at that. So, which premium will shoot up? 1 crore call writers were cut on the 5-minute candle. You haven't even taken a put yet because the put is running at the top. And 1 crore call writers were cut. So, even before this data comes out regarding the 1 crore cut, the call premium will start shooting up. Because the data comes in two-three minutes late. Now understand how the trade will be formed in this. We saw that the call writer went into the negative. Your 50-60 lakhs in the full-day basket, where the call writer was at 3 crores, there it went into the negative by 50-60 lakhs. So we saw that the call premium was trading low, and suddenly there was a spike in it. Suddenly what happened? There was a spike. Suppose this is the call premium , so what will it do? It will move the first candle upwards very rapidly. The call premium was trading low, the first candle will shoot up rapidly. As soon as this 5-minute candle closes, you will see the data right here before that. As soon as the data appears in Sensibull and this 5-minute candle closes after moving up from the bottom, place your trade above it. It happened yesterday, let's look at yesterday's case. It happened in Nifty yesterday, right? Come on, look at this. This is it, right? What time did it come? The reversal came around 11:00 AM, right? So look here. The premium was trading lower earlier. The full-day basket setup was in the put. The call premium shot up. How did it happen? -1 crore positions were cut. How much was cut? -1 crore. So we will miss the first candle. The first candle will definitely be missed. It definitely will. Meaning, we missed from here to here. As soon as the second candle moves above this, we will punch our trade. And even after this, if you look , it's not like the reversal came in just one candle. The second candle didn't go up. The second candle made a wick and then ran upwards. The third also ran, the fourth, fifth, sixth, and seventh. This means even after missing the first candle, we got at least five or six more big 5-minute candles. What was the condition? 1 crore positions, actually around 98 lakh, were cut. So we will leave the first candle. We will leave the first candle. The reversal will come. We will leave the first candle. We will mark its top. And as soon as we see a 1 crore or 50 lakh position cut, which is 20%of the full-day basket, then as soon as the premium moves above this, we will initiate a trade in the running candle. Now in this condition, you can do one thing. I am telling you how to manage risk here. In this condition, for example, if you usually buy 10 lots, then in this condition, buy only 50% lots, which is five lots. I will tell you the reason; because whenever the market comes up rapidly, any price comes up rapidly, the seller is incurring a loss, so it is highly volatile. Buy 50%of your quantity in this. Increase the stop loss, which is 15 points, to 30 points. Quantity 50%, stop loss double, so that your stop loss does not get triggered. You will get a big target. If the condition is like this, you get a big target. The Sensex premium had absolutely exploded. There was an expiry yesterday too. So yes Ashish bhai, in this condition, mark the top and keep at least a 30- point SL. Just keep the quantity low in Nifty because you need a big target and a slightly larger SL so it doesn't get triggered. Keep a 30-point SL and let the trade run as long as it shows minus after minus on the 5-minute data. Let the trade run, and if you look at yesterday's case, after the 98 lakh positions were cut, it wasn't like they built up immediately. You checked, it was continuously in the minus. Call writers were continuously in the minus and call premiums were exploding upwards. So where did it go? The premium went from ₹ 280, sir, it hit a high of ₹ 450. It hit a high from ₹ 280 to ₹ 450. In the future, if this happens on live, I will catch it, I guarantee I will catch the reversal for you. You watch from tomorrow, today I have some YouTube issues. I will be on live and if a reversal comes, I will surely catch it and show you how it's caught. I will show you how to catch it . Is that correct? So keep the SL at 30 points and keep the quantity low so you can manage it. So that your SL doesn't get hit. So this is the way to catch a reversal. You can catch reversals very well. Similarly, if the market, suppose it's gapping up, trading 200+ points higher, 50, 70, 80, or 100 points, and you see that 20%of the full-day basket on Sensibull goes into the minus on the 5-minute data. Into the minus? Now if the market is trading higher, who will go into the minus? The put side will. The put side keeps the market up, so the put side will go into the minus, correct? Put side minus, you will see more of the put side in the full-day basket. If the market is trading higher and that goes into the minus, 20%of whatever the quantity is, then the first candle, the premium that will explode, which one will it be? The put. Since the put went into the minus, which premium will explode? The put's premium will explode, because the put will be trading lower since Nifty is trading 100-200 points up. So, for the put premium, skip the first candle; by then you'll have the data and confirmation whether the position cut is a reversal or just a retest. Yes, you can do that too. If call writers are cutting 10, 15 lakhs at a time, that's a good question. 10, that's also good. Suppose they don't cut all at once. Usually, a reversal happens all at once, Varun, from what I've checked. Only when positions are cut simultaneously does a reversal occur. If 10 or 15 lakhs get cut in two or three batches, you can still do it then . Mark the first big candle that appears on that premium. When it breaks above that, enter with 50%of the quantity. Aim for a big target. Keep your stop loss a bit larger, about 30 points for Nifty. So, this is how you can effectively catch a reversal. And I will even show you how to catch it live . On a day when such a situation arises . It takes time to build the right psychology. At least a year or two. Yes . Assume at least that much, because psychology means you are practicing your reversals. Practice makes a man perfect. So, that is your way of catching a reversal. I hope you liked it. I will wind up this class right here. I will take the next class soon and cover the next agenda or question you have, so keep going. We will keep doing this from time to time. Guru ji, will today's video be available for a lifetime? It is for a lifetime, isn't it? Yes, it will be added there, absolutely. You will find it added there by the evening. You can watch it later too; it will be saved. Bye-bye! If my YouTube is working fine, I'll go live on YouTube right now. Bye-bye, take care.