Why holding Nifty50 on Friday over the weekend can be a bad idea

7 авг. 2022 г.

In this analysis we are just looking at the weekly days at key turn around periods. It seems that Monday tops the list of trend change, having said that this also means option seller is trying to trap people who have taken positions (in the same direction as Thursday) over the weekend. A cut throat theta decay perhaps over the weekend, followed by a trend change on Monday is a sweet spot for sellers.

How can you plan your trade?
Look for key day in previous three swings, and check what are the smart money strategies in terms of basic days of the week. During those days, plan a reversal trade.

Dos and Don'ts for option buyer for Nifty trade setup:
1. Do not hold positions on one day prior to key date - here e.g. Monday so do not hold key overnight for Friday
2. Plan reversals based on monthly swing dates followed by trigger line method or Heikinashi Candle setup

Heikinashi Candle Setup: