Pivot Call

The lesson is simple: Dont short immediately just because a breakout failed. Wait for the breakout candles low to break. That provides a high probability trade. This Trap Trading concept is discussed in Page 189 of The Traders Handbook. https://shop.pivotcall.com/product/handbook/

Charts don’t just show price – they show the emotions of traders behind every move. Look at the this setup in Bank Nifty chart yesterday (17th September) – price breaks the previous day high, breakout traders jump in with buy orders, and keep their stop losses below that breakout candle. The breakout at 9.30 am candle initially failed, But notice breakout candle’s low stayed protected for a long time, where breakout buyers would usually keep their stop-loss. The short setup came at 10:40 AM—when Bank Nifty finally broke the low of the 9:30 am breakout candle. The breakdown at 10.40 am candle confirmed the breakout buyers were trapped—stops got triggered, and Bank Nifty went into a free fall. Later, Bank Nifty came back to retest the 10:30 AM fake breakout candle’s high. That level acted as resistance, and Bank Nifty reversed again.

Once again, sellers appeared. Price formed a bearish candle near the CPR confluence and reversed. Same level. Same reaction. Different time. The Trading Lesson: Wide CPR → Be prepared for a sideways market. And on a Wide IB day, instead of blindly chasing breakouts, pay close attention to how price behaves around: IBH + CPR and IBL + CPR A rejection from these important levels can provide a potential reversal trade. This wide CPR concept is discussed in page 86 in “A Trader’s Handbook” https://shop.pivotcall.com/product/handbook/

Wide CPR? What it signifies? One of the important clues in CPR trading is the width of the CPR. When CPR is very wide, the market often spends more time moving sideways rather than trending strongly. But there’s another level you should keep on your radar: Initial Balance (IB) - The High and Low of the first one hour form the Initial Balance. On a wide CPR day, these levels can become important intraday support and resistance. And when the Initial Balance (IB) itself is wide, it gives us another clue: ➡️ More possibility of a sideways day ➡️ Breakouts from IBH/IBL can fail ➡️ Reversals near IBH and IBL become important setups Look at Nifty — 16th September(Yesterday) This was a great example. At 9:15 AM, Nifty first candle reached the Center Pivot and faced selling pressure. Price was rejected from the level and moved lower. Then, around 11:05 AM, Nifty came back to the IBH + Center Pivot area.

Friday (11th September) Nifty made a strong bullish move, many traders expected the bullish momentum to continue on Monday(16th September) Then Nifty opened with a big gap-up, making the bullish setup look even stronger. But there was one important detail many traders may have overlooked. Nifty opened directly into a strong resistance zone on the Daily Time Frame. And from that zone, Nifty reversed sharply. Whats that strong resistance? 1️⃣ 24th July Swing Low A previous support level was now acting as resistance. 2️⃣ 8th & 9th September Gap Border An important gap level was also present around the same price. So, we had multiple higher-time-frame confluences meeting at one zone. And that is where the market found sellers.

2️⃣ Strong Bullish Daily Candle The 12th June Daily Candle was a strong bullish candle. That candle itself was evidence of significant buying strength around that area on that day. So we had two important confluences: Gap Border Support + Strong Daily Bullish Candle When two important factors come together at the same price zone, it becomes a level worth watching closely. And that is exactly where Bank Nifty found buyers. The BIG Lesson Don’t trade the 5-minute chart in isolation, always refer daily time frame chart along. Before taking a trade, zoom out and ask: ✅ Where are the major Higher Time Frame Support & Resistance levels? ✅ Are there any important Gap Borders? ✅ What do the previous Daily time frame Candles tell us? Remember: Lower Time Frame gives you the entry. Higher Time Frame gives you the context. This Gap Trading Concept is explained on Page 251 of A Trader’s Handbook. https://shop.pivotcall.com/product/handbook

Yesterday, on 11th September, Bank Nifty opened with a huge gap down. The first impression was obvious — “Another bearish day. Sellers are in complete control.” But the market had a completely different plan. After the initial fall, Bank Nifty started recovering sharply and eventually formed a powerful V-shaped reversal, trapping all short sellers. So, what was the market telling us before the reversal? The clue was actually visible on the Daily Time Frame. 1️⃣ Gap Border Support There was an important gap area between 11th and 12th June. Bank Nifty came down almost exactly to the Gap Border. Instead of breaking it, price found strong buying interest and reversed.

The same previous day low support, later acted as resistance when price came back to retest it at 12.30 pm. Instead of moving back above the level, price faced selling pressure and continued lower. This gives you an important trading lesson: Missed the breakdown? Don’t chase the move. Wait for the market to come back to you (Re-test entry) When broken support is retested it starts behaving as resistance, it can offer a much better risk-to-reward short entry than entering after an extended breakdown candle. This Support → Resistance concept (Re-test entry) is explained in Page 216 of A Trader’s Handbook. https://shop.pivotcall.com/product/handbook/

Support Breaks. Resistance Takes Over. Imagine you’re standing on the ground floor of a building. The ceiling above you is your resistance. But once you move to the floor above, that same ceiling becomes the floor beneath your feet. Price action works in a similar way. A support level may hold price multiple times. But once that support is decisively broken, the same level can change its role and start acting as resistance. Look at yesterday’s Bank Nifty chart— 10th September. The low of the previous day (9th September) Deamad zone initially acted as a strong support. Next day (10th September) when first candle finally broke below that Demand zone level, the role of the level changed.

Yesterday (9th September) Bank Nifty gave a strong upside move in the mid afternoon. At first glance, it looked like a classic short-covering rally. Many traders would have seen the momentum and jumped into long trades. But then came the twist. Around 12:45 Bank Nifty reached an important level — the previous day’s low (PDL), which was also acting as a Gap Border. And what happened next? Resistance then Reversal. So, what happened there? That is the Power of Gap Borders When the market opens with a gap-up or gap-down, the previous day’s High and Low can become extremely important support/resistance levels. Markets often tend to fill such gaps and the edges of those gaps can become powerful support or resistance zones. Yesterday’s Bank Nifty move was almost a textbook example of the Gap Border concept. This Gap concept is explained in Page 252 of The Trader’s Handbook. https://shop.pivotcall.com/product/handbook/

Trend days usually provide multiple entry opportunities. So instead of trying to catch reversals, focus on trading in the direction of the trend. Next time when you see a strong trend day, keep an eye on these levels. This Trending day concept is covered in our course "25 Day Trdaing Strategies in Nifty & Bank Nifty" https://pivotcall.com/courses/

Yesterday (8th September) was a perfect trending day in both Nifty 50 & Bank Nifty. Trend days are one of the best opportunities for traders — if you follow the trend instead of fighting it. But the key question is - Where should you enter on a trending day? Most traders make the mistake of Shorting random candles. Instead, you should patiently wait for high-probability levels. On 9th September Nifty 50 chart, I marked some of the best high-probability short-entry zones: 1. Break of PDL with strong bearish candle . 2. Pullback to slopping 20 EMA . On Bank Nifty chart, I marked some of the best short-entry zones: 1. First hour low (IBL) breakdown. 2. Retest of the (IBL) breakdown level. These are the places where price often respects resistance, continues the trend and gives best risk-reward entries.

So instead of taking a random short entry: 📌 Wait for price to retest the high of the first red candle. 📌 Look for rejection candle at that level. 📌 If sellers again take control, it can provide a high-probability shorting opportunity. (Note: This first-candle bearish price action setup can work best when the overall market trend is also bearish on the Daily timeframe) The beauty of Price Action is its simplicity. When you understand market structure, buyer-seller intent, and important price levels, you don't need to complicate your charts with too many things. This first candle concept is also discussed in detail in The Trader's Handbook — Page 166. https://shop.pivotcall.com/product/handbook/

In intraday trading, the first candle of the day can provide important clues about who is in control for the day— buyers or sellers. Observe whether the days first 5 min candle is bullish (green) or bearish (red). 🟢 Strong Green First Candle Shows that buyers entered aggressively right from the opening. 🔴 Strong Red First Candle Indicates that sellers stepped in aggressively from the opening bell. Look at Nifty on Yesterday 3rd September & 2nd September On both days, the first candle was a large red candle. This clearly indicated that sellers were in control from the beginning of the session. When the first candle is strongly bearish, its high becomes an important resistance level. Why? Because that is the area where aggressive sellers entered. That level can also act as a Supply Zone.

That’s the power of the Virgin CPR — it acts like a magnet zone where price reacts strongly, either taking support or facing resistance. This Virgin CPR concept is explained in detail in Page No. 81 in Traders HandBook https://shop.pivotcall.com/product/handbook/

Most traders use CPR (Central Pivot Range) for daily bias —but very few understand one of its most powerful concepts: Virgin CPR. A Virgin CPR is formed when, on a particular trading day, price never enters or touches the CPR zone throughout the entire session. That untouched CPR remains “virgin” — and becomes a powerful support or resistance level for the next day. In simple words: If the price completely stays above or below the CPR on one day, mark that CPR zone on your chart — it becomes an important level for the next session. Example from Nifty: On 31st August, Nifty formed a Virgin CPR — the entire day, price traded below the CPR without entering it even once. The next day, 1st September, Nifty opened strong and started rallying sharply. But look closely — exactly at the Virgin CPR zone of the previous day, price found resistance and made a strong reversal.

If you go back and study historical charts on daily time frame, you'll notice this behavior repeatedly. Many gaps eventually get filled because gaps act like magnets, attracting price back towards them. But remember... This does not mean every gap will be filled immediately or that every gap fill will result in a reversal. Instead, treat gap areas as high-probability price action zones where the market deserves your close attention. This Gap concept is covered in our book " A Trader's HandBook" page no 245 https://shop.pivotcall.com/product/handbook/