Classic Example of Using Gann Nos for Option Trading!

I am posting here a today's trade in option where use of Gann numbers in both Bank Nifty levels and Option price gave excellent trade!

The various Gann Nos (4/5 digit) in between 3 digit Gann nos of 20400 & 21100 are (20478-20480)-20591-(20705-20710)-20819-(20933-20940)-21046

Yesterday Bank Nifty bounced back from 20480 (Low was 20472) and faced resistance at 20591 and then moved up to 20700. Today morning it reversed form 20700/20710 level and made low of 20619 and then moved up again. I was waiting for Bank Nifty to break 20710 for target of 20819/20940. When Bank Nifty broke 20710, it moved very quickly to 20900 just 40 points short of 20940.

Here is chart of bank Nifty 5 min chart with Gann Levels.

When Bank Nifty broke 20710, I bought 21000 CE for Rs 13. This option has 45 degree movement. It moves from 1-3-7-13-21-31-43-57 i.e. Gann series for 45 degree.

I put Stop Loss (SL) as Rs 10 just Re 1 below 11, lower Gann No from 180 degree series. When price reached next level I trail my stop loss following same method of putting it Re 1 below lower number from 180 degree series (for level 21, TSL 18 and so on.). The TSL hit only when option price reversed from 43 level and hit 39.

For risk of Rs 3, net gain was 26. One can see how nicely option price move from one level to next level during impulsive move.

This is excellent example of how using Gann Nos on Index (Bank Nifty) and Option price one can get excellent trade in option trading. For Bank Nifty move of just 200 points I got 200% return on capital with risk of 25%(Risk Reward ratio of 1:8).

Comments

Bank Nifty for Week Starting Jan 16, 2017

Last week Bank Nifty made big up move of 650 points. High made is 18966. It looks like it is ready for further up move. On hourly chart Middle BB line(RED color) is providing support and Index may again move up towards upper line of Blue Channel. The Best trading strategy is now to go Long when Index is bouncing from Middle BB line and Exit when it is near upper line of Blue Channel. Hourly RSI shows Resistance at 85 level and Support at 59 level. So Blue channel along with RSI levels are good indicators for trade. It is not good idea to go short as Up Momentum is strong. If Index breaks Middle BB line then only short positions should be taken. If Bank Nifty breaks 18850/18800 then we may see it reach quickly to 18650/18600. Also it may break RSI support level of 59 for major correction. We may see Index moving along Upper BB line (Blue color) on Daily chart. Index may face resistance at 19150/19200 level. If it crosses 19200 it can reach to 19500/197000. Daily RSI is

Bank Nifty EOD Update Feb 15

Bank Nifty today move down sharply after opening Gap up and making Top of 20368 just near Gann No 20364 and reversed sharply making Low at 20115 and closed at 20163. It seems wave B is completed at 20368 and wave C is started (confirmation only when Bank Nifty crosses 20000). We may see bank Nifty moving sharply to 19700/19500. Daily chart shows RSI crossing 70 level from top that shows possibility of down move. Also Bank Nifty broke lower channel lines (Blue as well as Red). So Bank Nifty may fall sharply in wave C.

BanknIfty Update for Jul-15, 2020

Banknifty opened Gap Down and continuously moved down. In the last 2 days, it almost falls more than 1200 points. We are able to capture this move from almost the top of 23000. The daily chart shows Banknifty took support at 30-EMA levels. MACD signal gave a bearish crossover signaling possibility of further fall in the coming days. RSI @ significant levels of 50. Break of 20900 could lead to a sharp fall towards 19700/19500. On the hourly chart, the MACD signal gave bearish crossover yesterday, and we saw a good fall in Banknifty. Gann Box: Weekly Gann Box shows Banknifty exactly changed the trend from the time factor zone. Also, the weekly opening was near the angle and it reversed after hitting angle and gave a good fall. It signaling a bearish trend for the coming weeks. On the daily Gann Box chart, we can see today Banknifty opened near angle, hit angle, and reversed sharply giving good down move. FNO Data: The future OI decreased by 7% signaling short covering with fall. The spot

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