Summary of "SNiper Theory Nifty Option Trading Explanation | Maths Based Trading #niftyoptiontrading #smc"
Summary of "Sniper Theory Nifty Option Trading Explanation | Maths Based Trading"
Main Financial Strategies and Market Analysis:
- Market Trend & Supply-Demand Zones:
- The video emphasizes analyzing market trends through supply and demand zones, especially focusing on the Nifty spot market.
- Identification of key demand zones is done by marking significant long-body candles (high buying or selling pressure) and calculating their 50% retracement levels to predict potential price reactions.
- Historical support levels around 24,580 to 24,700 have been identified where strong buying interest prevents the market from falling below, suggesting these are critical zones for decision-making.
- Sniper Theory Concept:
- The "Sniper Theory" point is described as an average level derived from the activities of Option Sellers (call and put sellers).
- Market direction depends on whether prices stay above or below these sniper points.
- Call sellers’ strength above certain levels and put sellers’ panic below certain levels influence market momentum and potential reversals.
- The theory suggests waiting for clear confirmation (breakouts or pullbacks) around these sniper points before taking trades to avoid losses.
- Market Opening and Intraday Patterns:
- The video discusses the significance of market opening prices relative to previous highs/lows.
- Describes the "one-two-three" formation pattern that appears when the market opens above or below prior lows/highs, which can signal potential trend continuation or reversal.
- A flat market open is considered a consolidation phase, requiring cautious trading.
- ABC Pattern and Momentum Trades:
- The ABC corrective pattern is used to identify entry points, targets, and stop levels.
- Emphasizes waiting for consolidation to end and breakout confirmation before entering trades.
- Highlights the importance of momentum generated from these key levels and patterns.
- Risk Management & Trading Discipline:
- Strong advice to follow rules strictly and avoid trading when conditions are unclear.
- Encourages observing the market for at least 2-3 months to understand the nuances before actively trading.
- Mentions avoiding losses by not forcing trades and waiting for Sniper Theory confirmation points.
- Mentorship Program:
- Announcement of a paid Mentorship Program starting August 8th, priced at ₹10,500.
- The program aims to teach option trading strategies, advanced market analysis, and how to use Sniper Theory effectively.
- Testimonials shared about successful trades and profits made by previous mentees, highlighting potential returns up to 200%.
Methodology / Step-by-Step Guide (Implied from the Explanation):
- Identify key long-body candles on the 1-hour chart to find strong supply/demand zones.
- Mark the high and low of these candles and calculate the 50% retracement level to create a rectangular zone.
- Observe historical price reactions around these zones to understand market sentiment.
- Use the Sniper Theory point (average of option seller activity) as a critical level for trade decisions.
- Monitor market opening relative to prior highs/lows and look for the "one-two-three" formation to anticipate trend direction.
- Wait for consolidation to end and breakout confirmation before entering trades.
- Use ABC corrective patterns to set entry, target, and stop-loss levels.
- Follow strict risk management rules, avoid trading without clear signals.
- Continuously observe and analyze market behavior over time to build experience.
Presenters / Sources:
- The video is presented by a trader/mentor who refers to a community called Silver and Gold members.
- Mentorship Program and trading insights are shared by the presenter who encourages joining via WhatsApp.
- Testimonials and trading results from mentees are mentioned to support the teaching.
Note: The video is educational and emphasizes practice, observation, and disciplined trading based on mathematical and behavioral analysis of the Nifty options market.
Category
Business and Finance
