How to opreter traps identify false breakout in trading
You must have heard a lot about operators who run machines, but there are operators in the stock market too, especially those who do trading, they always have to deal with operators. No matter how long you have been trading, if you have not been beaten by stock operators, then you have not become a proper trader yet, because without being beaten by operators, I don't think anyone can become a trader. Whether you learn candlesticks, learn chart patterns, learn different indicators, learn option chain analysis, all this learning goes waste when the operator's game comes to the fore, nothing will work, no candle will work, no option chain, nothing works because the operator has come.
Who is an operator?
How does he play the game and how do we have to save ourselves, how do we save our money, when the operator enters, they will understand, so first of all understand the meaning of operator sir, like what would be the Hindi meaning of operator, the one who operates, the one who operates, so nothing negative is seen in it, he is operating the stock market, okay, he must be operating, the negative meaning is that the one who operates the stock market means he is manipulating the stock market, that means the normal kind of flow of the price of a share is not a normal flow, it is a created flow, how is the flow created, we will talk about that too, okay, so today's agenda is to understand who are the operators, to understand what is the trick of the operator and how do we avoid that trick in trading, okay, first understand the operator sir, who are there in the stock market, then we will understand who can be the operator and who cannot be the operator, because you will not understand this by looking at the operator today, oh, it looks very long and wide, this operator is not like that It is going to happen, you have to understand that the operator is different at different times, different people will become the operator, sometimes he will become the operator, that means the one who manipulates the stock market, the one who interrupts the normal flow of your trading and in its interruption you incur loss, you and we incur loss, the first player is.
DI Income Domestic Institutional Investor There are so many big institutions in the domestic market, there are mutual fund companies, there are big fund houses, all of them have come into the domestic market, these are also big players.
FII Foreign Institutional Investor means foreign companies which are playing in our stock market, are actively evolving, these are also big players.
I and you are retailers. I and you are small people. We are also small people. You are also small people. All of us together have become retailers. Now if we see, two groups have been formed here. Sir, one is the big group of big people and this small group means if you look at the numbers, then their number is small. Here, one person, each group is going to play with thousand crores, lakh crores. Here, one person is big in terms of numbers, 100 thousand, 20 thousand lakhs, two lakhs, 5 lakhs. These are more people. These are less people but they have a lot of money. They have less money. Now when we talk about option trading, you understand that sir, this is some game. When money comes out of one's pocket, then it will go from the other's pocket. This group will want to eat its money. It is big in numbers. It is in huge numbers. If we talk about 101 thousand, then this very big amount becomes lakh crores, it becomes lakh crores and these people want to eat its money. And they will win only when they will be able to eat their money. In the battle of who will win, brother, they have more money. They have a lot of data, data means you can buy different types of data from NSC by paying more money, there are different plans of NSC, they have big heavy softwares, expensive ones, with which they can analyze the data properly, this poor man does not have much, he is sitting with a software worth Rs 2000, most of the people do not have it, he is looking at the NSC data, option chain indicator, candle and chart, he is working with the knowledge he has learnt, who will win, chances are higher for him to win, then how will the retailers like me and you earn money in trading, we will earn, we will also earn if we can understand their trick
So here if I am able to understand its trick then I will win, if I am not able to understand its trick then I will lose meaning I will lose my money so the game is about understanding each other's activities so now let's talk about how we will understand it, look sir it is like this no matter how much you learn in stock market no matter how much analysis you learn, you cannot learn trading or investing in real stock market without getting caught in the trap of operator and operator traps you in different ways, you need to learn all those methods.
Look, there is a concept in trading, support resistance is a very powerful concept. Most of the traders trade on this and the reason for trading on this is that the accuracy on this is the highest. If you come to know that a point is a support, then you can do good work there. If someone comes to know that it is your resistance point, then you can take a good trade there. I am coming to the definition of a good trade. So if someone comes to know about support and resistance, then I say that in the stock market, sorry in option trading or in trading, he hit the jackpot, the day your price movement went to the support or resistance and you know that this is support or resistance, you hit the jackpot that day because here after the price goes, the probability of going wrong is very less, but sir, where there is more trust, there the trust is betrayed, where there is the maximum crowd of people, something wrong is done there.
Support is the part from where the price is here, if we come to know that it is support, then two things can happen, after breaking it, either the price will go down further or it will come back after hitting it. Okay, when the price is going up on the resistance, here also two things will happen, either the price will come down after hitting it or it will come back after breaking it. Generally, the observation is that when the price is hitting the resistance, it comes down and if it goes up even a little, then the chances are high that it will go up a lot now. This kind of observation is commonly seen. Similarly, it was seen here also that if the price returns back then it is fine but if it comes down even a little after breaking it, then it will go down a lot. So people understand that it is going to come down, so they take put. People understand that it is going to go up, so they take call. And operators take advantage of this, how do they operate? See what happens when this price hits here, okay, the price went up. You thought that it has broken, there has been a breakout, so with this it will go up only, but it comes down and then there is a breakout and Breakdown The downward break down when the support is broken then it is called breakdown and when the resistance is broken then it is called breakout, with both of these there is a concept called false breakout and false breakdown sir, when in such a situation after going up it comes down then we call it false breakdown, the real breakdown is not real breakdown, it is a fake breakdown, this is a managed breakdown and the breakdown that was managed means who got it done, why did the operators get it done, to eat your money, now let us understand how to eat your money.
The price touched the resistance and went right here, well as soon as it came out here, what did you, that is, we and you retailers think, now the market will go up, we bought at this point, filled the call, okay and at this point we put the stop loss, Bhaiya, okay, if it goes down from here, then okay, we put the stop loss, now the big players sir, since they have expensive software, they have data of good levels, data of many levels, so they have the ability to do more analysis, they have the capacity to do more, so their analysis is not very accurate to a large extent, but to a large extent the data of stop loss can also be extracted, it is not exact, but still a rough idea is obtained that how many stop losses are placed at that point at that certain price, so the big players got the idea that Bhaiya the resistance has been touched and a huge amount of stop loss is placed at this place, so now what do we do, let's take the market a little higher, let's take it higher and you have made an entry, you have taken the call, a lot of people have put a stop loss here now It will come down rapidly, it has eaten up all your stop losses, all your money of the calls has been eaten up, who ate it up, who ate it up, the operators who were big players, they ate it up, it is option trading, one's money, one's loss, another's profit, your loss, his profit and this was in a huge heavy amount Sir, the trust is maximum on resistance and support, so most of the game happens here as well, it happens at many points, it happens in the middle too but most of the game happens here.
The type of candle that will form will depend on the type of price movement, so we cannot trust the candle too much and the most effective method is the volume, other than that all other methods, Sir, if someone tells you to understand by looking at PCR data or candle or any other method, you will get very little accuracy, Sir, its accuracy will be very strong, 100%, if you are able to understand the volume.
When the price is moving upwards, this is the area of volume, so you will see here that the volume is also increasing when the price is moving upwards, that means when the price is increasing, when it is falling down, then you will see the red one, good green one and the red one, you will see the green one increasing, then you will see the red one increasing, okay, when the price is moving upwards, you will see the green one increasing, but there will also be a case where it is going up and here brother, there is not much movement, you are seeing the same as it was happening before, but here it is increasing, it means that this is a manipulated price, it means that this is a game, the game of more operators is going on here, but understand one more thing carefully sir, what will happen is that many times you will see that the volume here will keep increasing in the green ones and still you will see that the price is not increasing much, it means that now an uptrend is going to come soon, if the volume is high, it means more investors are entering here and there is no change in the price, it means that the price is suppressed right now, it is going to change into an uptrend soon, you can understand this thing plus by looking at its PCR data. By looking at the data of open interest, you can understand that okay, this also has a meaning but the thing to understand here is that sir, if there is no big change in the volume downwards and it is increasing, it means that it is fake, do not trust it sir, this is the way to understand breakout and breakdown falls, okay, so in today's session, maybe you understood the breakout, you understood how operators play with your mind.
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