Market Crash Warning: Key Support Level
60sThe speaker identifies a critical support level with a potential 500-point move, sparking urgency and fear of a market crash.
▶ Play Clip"The title promises a market crash, but the video delivers a balanced analysis of support levels and a trading strategy, making it more informative than alarmist."
The video discusses the possibility of a market crash after a critical support level is broken, focusing on Nifty. It emphasizes the importance of following a disciplined trading process over emotional reactions. The presenter also reviews a specific low-volume strategy applied to various stocks.
The market is holding a critical support level around 22,800, which is an important zone. A break below this level could signal a downtrend.
Support and resistance levels are created to be broken. The market can only be followed, not predicted.
The low-volume strategy involves avoiding the first three candles, then taking the lowest volume reading from the next three. A short is triggered when a subsequent green candle has even lower volume.
Trades with a stop loss that is too wide relative to the stock's price are avoided to maintain a good risk-reward ratio.
The first target is to become a profitable trader, even with small capital, before aiming to become a successful trader.
What is the critical support level for Nifty mentioned in the video?
22,800
00:01:59
What is the primary goal of the low-volume strategy discussed?
To identify stocks with low volume on green candles, indicating a potential short trade.
00:06:39
What are the steps to execute the low-volume strategy?
Avoid the first three candles, then take the lowest volume reading from the next three. If a subsequent green candle has even lower volume, go short below that candle's low.
00:07:34
Why is it important to shorten the stop loss in this strategy?
To ensure a good risk-reward ratio, often by tightening stop losses to half the initial mark.
00:12:47
What is the first target for a trader according to the video?
To become a profitable trader first, even with small capital, before aiming to become a successful trader.
00:15:03
Support and Resistance are Meant to Break
This is a fundamental principle that helps traders avoid emotional reactions to market movements.
00:02:55Low Volume Strategy
Provides a concrete, rule-based method for identifying short trades, which is more reliable than gut feeling.
00:06:39Risk-Reward Optimization
Emphasizes the importance of managing risk to ensure long-term profitability, a key concept for any trader.
00:12:47Market Recovery After Crashes
Uses historical context (Covid crash) to illustrate that markets often bounce back, providing a balanced perspective.
00:04:41[00:13] Hello everyone, how are you all? Please let me know in the comments. So guys, as you saw the thumbnail of the video, will the market crash after this support is broken? Right, today we will talk about this, we will discuss this. So
[00:27] today we will talk about this, we will discuss this. So guys, you will understand things by understanding them. Try to understand them. Stop all this random trading with any tip or unnecessarily. Nothing is going to happen with this. So what is going to happen? It will happen by
[00:41] understanding it well and by making a trading plan. You had to write it down on paper and execute it. How the trend of Nifty was How the trend of Nifty was identified for
[01:02] we became negative again. Right, here we had to book a little loss somewhere. Right, we had converted into a positive trend and as soon as we became positive and negative again, if we look immediately, if I check this level,
[01:18] below 23222 we became negative and then again we became down trend and now if we see, the low made yesterday, that is 2774, so I think 500 There
[01:30] is an approximate move of 500 points, right, that means we have already created momentum around 500 points, okay, what scenarios are being created right now, guys, if we see, the
[01:42] market is holding this level for a long time, okay, the market is holding this level for a long time and somewhere it has become an important zone, okay, somewhere it has become an important zone, region, right, if you see, earlier at this very
[01:59] time, we saw a rally from this area, right, and if you see this zone, then this is very, very important, it was the we saw a rally from this area, right, and if you see this zone, then this is very, very important, it was the level of 22,800, which is very, very important, right, so if this level
[02:14] breaks out, that means if this level breaks out, below this level, if we see a red candle, that is, a red candle, I get to see a close like this, then
[02:26] how is the market going to react in future, guys, the purpose of making this video is to educate you, that is, to teach you these things well, I have made many videos today
[02:39] See, pop-ups keep coming, so it becomes apparent that the market is about to crash, what is going to happen to the market, the market is going to crash, guys no one knows, actually no one knows what is going to happen in the market, okay, support and
[02:55] resistance, all these are created only to break, so what can we do, we can only follow the market, right, so what do we have to do, absolutely important, below here, whenever any level is broken, then definitely panic selling comes, but
[03:12] we can also get trapped there, so what do we have to do, we have to follow our simple process, that is, if I look below this level, then we are already in a downtrend from here, right, that means approximately
[03:27] right, that means approximately below 23000 222, we are already in a downtrend, right and right now the level of 22929 is running in the current market, okay, let's see where it opens on Monday, but now you must have started understanding one thing very clearly
[03:42] that now we are standing here, so for me My last point is important, right, that is, it is a simple method that now as long as the market that now as long as the market is below this important level, as long as the market is
[03:57] below this important level, that is, I will think only one thing, that is a think only one thing, that is a bear, that is, the market can go down, as long as the market remains below this level, then only bearish, as soon as this market
[04:12] breaks this level, then only I can see that now from here momentum can be created in the market, see, it can be created, it is a game of probability, you have to understand this very well, probability, you have to understand this very well, what are you people, you get
[04:26] influenced by videos, TV channels and you take wrong decisions, guys, whoever must have seen how much the market came during Covid, the market had come till around 7000 and from there it made a new high and from
[04:41] there the market broke its old all-time high and made new highs and made a lot of money, so guys, how long is this fall going to last, think for yourself, the harder you press the spring, the stronger will be the bounce back Right, it's a
[04:57] simple logic that you have to understand. You don't have to do all this, be influenced by a video or by someone's words. What you have to do is follow the process. Nifty is clearly visible right now that it is in a downtrend,
[05:13] which means the market can go down from here and you have found this important level. If this level is broken, then an uptrend can form in the market from here. Now why is the coming day important, that is, why is Monday important? Monday becomes important
[05:27] because our 22,800 level has already been broken, but we didn't get a closing. Right, if a red candle formation forms again tomorrow, then
[05:39] some panic selling may be seen here. That's why we have to be a little careful. There will be panic selling, so why be careful? If we do intraday, then it can be useful for us, that is, we can take advantage of panic selling.
[05:55] We will generate momentum there, which will create a momentum there. It is generate momentum there, which will create a momentum there. It is said that a wave will come, we can ride that wave, okay, so that is the reason, we have to understand that tomorrow if the market
[06:10] forms below this level, right, tomorrow if the market goes below this level, then a panic situation can arise there, so these things have to be kept in mind, okay, and
[06:22] we should not get influenced again and again by other videos, these things are important, we have to learn them, okay, guys, now let's understand what we worked in yesterday's strategy, which we already learned the strategy, low volume small stop
[06:39] loss strategy, okay, so let's understand what happened in it yesterday, so the first stock is Deepak Nitrate, Deepak Nitrate, guys, already if you see, after opening at 10, it was down at 7 to 8, so I have asked to avoid such stocks, okay,
[06:55] which stocks do we have to capture maximum, which are above 5 or above 5, sorry, and avoid those which are above 5, and trade in those which are above 5 It is below, okay, that
[07:07] means it will work till 5, but you are going above 5, at 6, at 7, at 8, so that is not correct, so Deepak Nitted, we avoided it, next is the Manapur, okay, let's check in Manapur,
[07:19] guys, where did we get the setup, it was down at 5, so it is manageable, it was down at 5, so it is manageable, now a little up and down, no 100% rule has been written, brother, you can do a little up and down according to me, right,
[07:34] but not too much, that brother, you go to 6, 7, 8, it is 5.1, okay, it's fine, let's see, if we avoided three candles here, the lowest reading of the three candles was lowest reading of the three candles was 73500, right again it is 12 lakh, it is 7, 44000,
[07:49] so a trade is not possible here, 368, 3, 43000, 111000, that means right now I need a volume of less than 1 lakh in the green candle, from 160000, and
[08:02] 105000 and from here you will see that the momentum was generated perfectly and we momentum was generated perfectly and we guys, Adani Enterprises. Now you will have to
[08:19] understand a little bit here. Okay, a little bit where people are getting confused again and again. We avoided three candles. The fourth one took the lowest reading in three candles. That is 97000. And then took the lowest reading in three candles. That is 97000. And then now I need less volume than 97. If 87
[08:33] comes, then I have to go short below this candle. That is, I have to go short below this candle. Okay, now what is the confusion among the people? The confusion among the people is that sir, it is even less than that. So, in the next candle, it came 36000. But guys, that is an inside, so it is inside, so it will
[08:50] work. I have no challenge. You can execute below the same candle. Okay, and we executed there. So you see, here also we got a good reward. you see, here also we got a good reward. Okay, we got it late, but we got it next.
[09:04] Okay, we got it late, but we got it next. Stock is delivery, let's check delivery, right, three candles were avoided, fourth candle reading was taken, lowest that is 113000, lowest than 113000 is required, 86 came, so
[09:20] lowest than 86 is required, that is, volume of 62000 came and I was short below this candle, came and I was short below this candle, which hit the stop loss, my stop loss was hit in the same candle, now what, which was lowest than 62000,
[09:34] 45000, okay, now if I have to re -enter next, then I need lowest volume than 45, if I have to re-enter then okay, again I need less than 45 and if we look here, another candle of 31 has come or I
[09:51] look here, another candle of 31 has come or I need less than 31, okay, 25000 has come, I need less than 25000, 51000 has come, okay and 105 are also left, so guys there is no logic to re-enter, okay, next stock, if we look at it Yes, that is a Glen
[10:12] volume was 2334. We need less volume than that. Okay, 2334 means we need less than 177000. Now 177000 is the lowest, so we need even less than that. Green need even less than that. Green candle 19000. Okay, we won't go. The next
[10:27] green candle 35000 will not go. It's already 10:30. Avoid it. Okay, already 10:30. Avoid it. Okay, such situations will arise many times, we will have to avoid it. But I probably don't have this add-on with Phoenix Ltd. Okay, just a moment, let me
[10:43] add it once. PHONONIX LTD. This is the data
[10:57] This data is from a global data feed vendor. Okay, If your data is not correct, then there is a challenge. Okay, so here is the
[11:11] Phoenix chart. Let's check here. 1, 2, 3. Let's avoid three candles. The lowest volume was 13000. The lowest volume of 13000 was 13000. Right now, the green candle needs a volume less than 13000, which means it reached 11000. It was shorted below this. But another green candle of 9700
[11:25] was shorted below this. But here I want to explain one thing to you very clearly, which I was also going to explain in the next webinar. But because people are asking,
[11:37] But because people are asking, why did you not take the trade in this? Why did you not enter? So the reason is that whenever I trade, I am looking for a high risk-reward ratio, right,
[11:51] which means I want a higher risk-reward ratio. Now if you look here, there is a stock of 00, it is approximately a stock of 00, and there is a stop loss of ₹1, which means this is near 2% loss of ₹1, which means this is near 2% of the stock value. Okay, generally I
[12:06] avoid such trades. What I need is that when my stop loss becomes less than this percentage, right? When my stop loss is reduced below half the mark, then only I will
[12:18] get the initiative ratio, so I definitely noted the trade initiative here, 7600 of 9700, I could have done it here, 3900, after 3900,
[12:31] 3900, after 3900, 4700, my trade is not possible here, 2500 and 3800, right now the volume required was less than 2500, 1400 last reading came, 1468, even less than this is required, 1380, now you check whether it is the lowest or not,
[12:47] 1380, now you check whether it is the lowest or not, 1380 is the lowest one right and this is the bottom of the candle, our short is formed, okay, so it is necessary to shorten the stop loss, it is necessary to shorten the stop loss, it is necessary to make a stop loss of half the mark, so that risk reward
[13:03] is good and if we look from there, then again we got 3 here also and the last stock that is a lower slab, well there is another one also, right now a lower slab, so it did not do anything, it remained in between the day high and day low till 1030 If it remains sitting then there is
[13:19] nothing to be done with such a stock and the last one is Kalyan Jewellers. Right, if you check here also, till 10:30 am, the day high remained below the day low,
[13:31] but at 10:30 am, it came exactly at the same place and if you see, the lowest volume was not there, okay, the lowest volume was not there, but without breaking the day low, does this work? Let's check that also, so we took three readings, look at the lowest volume,
[13:45] I am seeing it here, okay, I am seeing even the lowest here, that is, I am seeing the lowest volume in the green candle, okay, you can see that it is the lowest, right, we okay, you can see that it is the lowest, right, we
[14:00] so that our accuracy should be good, right, if the accuracy is good then only we will enjoy, if the accuracy is good then the risk reward will be good, so it is better. Right, these were our yesterday's stocks which I was not able to update due to some reason, that is why
[14:16] I thought of sharing it with all of you through a video. Let's say that yesterday Let's say that yesterday too our day was profitable, okay, so I hope you guys liked this video and if you
[14:31] want explanation on Nifty and our strategy every day like this, then definitely tell us by commenting, tell us what challenges are coming to you right now, we will discuss them in next Sunday's webinar and will learn many things, friend, in Sunday's webinar it is not that only this strategy, see
[14:46] strategy does not work, neither by discussion nor by making findings, that is, by removing the challenges, one becomes a profitable trader, so from today everyone set a target for yourself, first of all there are two things, first of all
[15:03] becoming a profitable trader, okay, then the next target will be to become a successful trader, so first become a profitable trader, right, even if it is on less capital, right, even if it is on a small capital, practice and tell us about the challenges, next Sunday we are sorry coming
[15:21] Sunday 8 PM, we will discuss all the things in our webinar, okay, many people will be able to get the link for it. If you are facing any problem then guys search your jam,
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