Futures’ Bhavcopy Analyser - Setup 1
Hi friends,
In this writeup, I shall explain one of my trade setups based on analysis of Futures’ Bhavcopy data. (This setup is
briefly discussed in my F2F interview with Mr. Vivek Bajaj (Kredent Academy). However, I felt need to elaborate on
some points, which I couldn’t cover during the interview. Though this setup is based on Futures, in my experience,
this analysis is quite useful in trading Options (Buying as well as Selling).
SETUP
LONG SHORT
- Highest COI of current series; Long built-up - Highest COI of current series; Short built-up
Signal - SVWAP > PSVWAP & SVWAP rising - SVWAP < PSVWAP & SVWAP falling
bars - Bullish Candle with Close > SVWAP - Bearish Candle with Close < SVWAP
- Rising RS line - Falling RS line
Entry - For Pullback traders: VWAP of signal bar or - For Pullback traders: VWAP of signal bar or
level SVWAP SVWAP
- For BreakOut traders: High of Signal bar - For BreakDown traders: Low of Signal bar
Stop Loss - 0.25 * ATR below Low of the Signal bar - 0.25 * ATR above High of the Signal bar
level (Additional buffer only to protect from (Additional buffer only to protect from
intraday volatility) intraday volatility)
Profit - I prefer to keep target open. Still, at 2:1 RR I part book position & trail rest.
Target - Anyhow, close the position by Expiry.
Note: I personally trade only Pullbacks. Thus, in the F2F video too, I have explained the setup only from Pullback
traders’ perspective.
Let us dig deeper into the setup. I have tried to cover different scenarios here, and have added notes for Options
writers as well.
1. BANKNIFTY - LONG
Point A is the Signal Bar. (In all examples)
In case of BankNifty, a Pullback trader will miss this trade, because price did not pullback to our entry level.
However, Breakout trader could get into the trade and it did really well for rest of the May series.
{Options writers – SVWAP as on Signal bar was near 32800. So as per the setup, 32800PE & below strikes are likely to
go-to 0. It worked really well for them.}
2. BANDHAN BANK – SHORT
Another beautiful setup, with COI highest in prior and current series. Despite being against larger trend on Nifty and
Bank Nifty, this Short did really well.
{Options writers – SVWAP as on Signal bar was near 323. So 325CE & above strikes are likely to go-to 0. It worked
well for CE writers.}
Tip: Though as per setup rule, COI being highest in current series is enough; still, if it is highest even for prior series,
even better.
3. BHEL – LONG
This is ACE setup in my book. Why?
Huge COI built on Signal bar + COI highest in 2 series + Candle bar touching both SVWAPs, indicating price is not
overstretched & closed above prior Series High. It worked out really well.
{Options writers – SVWAP as on Signal bar was near 51. So 50PE & below strikes are likely to go-to 0.}
4. TITAN – SHORT
Trade setup though puts odds in our favor, still it is bound to fail some times. In this case, it has failed. Price hovered
below SVWAP for few days, but later rose, taking Stoploss.
5. VEDL – LONG
On Signal bar, all conditions are satisfying & COI rise was whopping 34%, making COI nearly highest in last 2 series.
Only concern was PSVWAP is far from SVWAP… this indicates, price is over stretched. Still trade did fine.
{Options writers – SVWAP on Signal bar was near 260. So 260PE & below strikes likely to go-to 0. It worked out well.}
6. PNB - LONG
Here there are 2 trade setups. Point A & B.
A: Trade satisfied all the conditions. Later Stoploss of the trade is hit.
B: Here, most of the conditions are satisfied, but COI is not highest in current series. Thus, setup is not valid. (It
would have given good profits though.)
7. AMARAJABAT – SHORT
In this case, point A had all conditions for Short satisfied. But with big gap down, Reward/ Risk is no more favorable
for PE Long trades.
{Options writers – SVWAP as on Signal bar was near 790. So 790CE & above strikes are likely to go-to 0. With just 3
days to expiry, post gap-down, if 790CE still had decent premium left, only then that could be a good trade.}
8. LUPIN – LONG
On Signal bar itself, price has risen >12%. After such rise, it is natural for price to pullback or consolidate. Further,
Implied Volatility (IV) tends to cool off, in such scenario. Thus, buying CEs immediately, does not give good Reward/
Risk.
{Options writers – Such setups are good for them. SVWAP as on Signal bar was near 1140. So 1140PE & below strikes
are likely to go-to 0. If PE premiums are lucrative enough, then look for trade.}
FINAL WORD
Friends, above setup is just 1 example of how COI- Price Action + SVWAPs + RS are used in analysing markets.
I have been using these concepts for >4-5 years. These have helped me analyse different market conditions. Thus,
even if sometimes I miss trade in the setup, I still use above analysis to know underlying strength/ weakness in the
market, or which way Expiry is likely to happen.
If you like this setup, I suggest you observe it for some time. Check it in different market conditions. Depending on
your risk profile- trading style, use suitable criteria for Entry-Exit- Trailing. Then, back test and live test them. Best
part about Bhavcopy is, you can just download any past data, add to Excel and see how setup has worked in the past.
With this, we come to end of the write-up. All above charts are based on my Excel based Bhavcopy Analyser.
If you have any queries/ suggestions about this setup or analysis, feel free to reach me out on –
Twitter/ koo: @VOPAtrader (Pankaj DP)
E-mail: vopatrader@[Link]
Website: [Link]
THANK YOU!!
Disclaimer
This entire write-up is only for educational purpose. Past performance of any trading setups is no guarantee of the
future performance. I am neither SEBI registered Advisor nor Research Analyst. None of the examples or setup/
concepts discussed here should be construed as any trading or investing advice. Trading in stocks, Futures and
Options is extremely risky in nature. Author of this write-up is not responsible for any financial or material loss, due
to direct or indirect use of information presented here. Kindly consult SEBI registered advisors or analysts before
risking your money.
