Pivot Call

When Bank Nifty revisited the same level Yesterday, on 7th August, buyers stepped in once again, and the market bounced from that exact level. The lesson is simple: When PDH + Supply Zone or PDL + Demand Zone coincide, that level becomes a Confluence Zone—and the probability of it acting as a strong resistance or support increases significantly. This concept is explained in detail in The Trader's Handbook Page 279 https://shop.pivotcall.com/product/handbook/

Yesterday, I explained why not every Previous Day High (PDH) and Previous Day Low (PDL) is equally important. In yesterday's post, we saw how Nifty reversed from the Previous Day High because it was not just a PDH—it was also a strong Supply Zone. Today, let's look at the opposite example in Bank Nifty. Yesterday, 7th August, Bank Nifty took support exactly at the Previous Day Low and bounced sharply. Was it simply because it was the Previous Day Low? No. The Previous Day Low was also a Demand Zone. On 6th August, a strong bullish move had originated from that very level, indicating the presence of aggressive buyers. That transformed the Previous Day Low into a high-probability Demand Zone.

Because the 5th August (Wednesday) High was not just a Previous Day High(PDH) It was also a Supply Zone. A strong bearish move had started from that level right at opening on 5th August, which tells us that aggressive sellers were already present there at PDH. When price revisited the same level yesterday, those sellers became active again, causing the reversal and breakout to fail. The same principle applies to the downside. If a strong rally starts from the Previous Day Low, that level becomes a Demand Zone, making it much more powerful than an ordinary PDL. On the other hand, if the previous day's high or low was formed without any significant reversal or impulsive move, it is simply a previous day's level—not a strong supply or demand zone. Always ask yourself: Did a strong sell-off begin from this PDH? → It is PDH+Supply Zone confluence Did a strong rally begin from this PDL? → It is PDL+Demand Zone confluence This is called a Confluence — when multiple technical factors align at the same price level. In this example chart, 5th August High was not just the Previous Day High (PDH); it was also a Supply Zone. This confluence made it a high-probability resistance level on 6th August, increasing the chances of the resistance and breakout failing. Learning to identify these Confluence Zones on the chart is explained in detail with examples in The Trader's Handbook — Page 279. https://shop.pivotcall.com/product/handbook/

Not every Previous Day High (PDH) or Previous Day Low (PDL) is an important support or resistance level. One of the biggest mistakes traders make is assuming that every PDH and PDL will work as support or resistance. They don't. The real question is: How do you identify which PDH/PDL is powerful and which isn't? Take Nifty on 6th August (Yesterday) as an example. Price initially broke above the Previous Day High, giving the impression of a strong breakout. But instead of continuing higher, it quickly reversed and started falling. Why did the breakout fail?

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Since Nifty and Bank Nifty move in tandem most of the time, a breakout in one index without confirmation from the other has a higher chance of failing. As soon as Bank Nifty reversed from its day high resistance, Nifty also lost momentum and reversed, resulting in a fake breakout. The lesson is simple: A breakout becomes a higher-probability setup when both Nifty and Bank Nifty confirm the move together. If one index is breaking out while the other is still stuck at a major resistance, be cautious. The probability of a failed breakout increases significantly. This concept of how Nifty and Bank Nifty move in tandem—is explained in detail on Page 156 of The Trader's Handbook. https://shop.pivotcall.com/product/handbook/

On 29th July (Wednesday), Nifty opened with a Gap-Up. On such gap-up days, the Day's High and Day's Low become important support and resistance levels because they form the Gap Borders. Nexy day, on 30th July(yesterday), Nifty opened and, as expected, started facing resistance at the Previous Day High (Upper Gap Border). Around 12:30 PM, a large bullish candle broke above the previous Day's High. At first glance, it looked like a strong breakout that could lead to a sharp rally. But it didn't. Within a few minutes, Nifty reversed sharply, turning the breakout into a fake breakout. So why did this breakout fail in Nifty? A trader who understands Price Action would recognize that this was actually a low-probability breakout. The answer becomes clear when you look at Bank Nifty. At the exact time Nifty broke above its previous Day's High, Bank Nifty was still trading at its own Day's High resistance. In other words: Nifty was breaking out. Bank Nifty was still facing resistance.

The lesson here is simple: When trading intraday, don't limit your analysis to the 5-minute chart. Along with: Swing Highs & Swing Lows/Supply & Demand Zones, also mark 20 EMA level. Many traders focus only on horizontal support and resistance but ignore 20 EMA on daily time frame chart which also very important level. Learn Price Action: https://pivotcall.com/courses/

Yesterday (28th July), Nifty broke the Previous Day High in the very first candle. This was an important level because 27th July was a Gap-Up Day, making the Previous Day High the Upper Gap Border. Yesterday The first candle gave a bullish breakout above the gap border. Many traders would have expected the market to continue rallying from there. But it didn't. After the breakout, Nifty reversed and remained sideways for almost the entire trading session. So, why did the breakout fail to generate momentum? The answer was visible on the Daily Time Frame chart. The Nifty was approaching the 20 EMA on Daily Time Frame chart, which was acting as a strong dynamic resistance. (Blue line in the chart) As soon as price reached the 20 EMA, it faced resistance and lost momentum, resulting in a sideways market despite the breakout.

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" https://shop.pivotcall.com/product/handbook/

One of the popular sayings in Price Action Trading is: "Markets don't like gaps." What does that mean? Whenever a gap is created on the chart, the market has a tendency to revisit that area and eventually fill the gap. While there is no guarantee about when it will happen, many gaps do get filled over time. Take Nifty as an example. Between 12th June and 15th June, a significant gap-up was created. As you can see on the chart, the upper border of that gap acted as an important support for several trading sessions. Then, on 24th July, the market finally moved down and filled the gap. Interestingly, once the gap was completely filled, Nifty reversed on the 5-minute chart, showing how gap areas often become important reaction zones. 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.

When a breakout occurs along with multiple levels, the probability of breakout working increases. But remember... A Narrow CPR does not guarantee always a trending day. It's the confluence of multiple factors that creates a high-probability setup. That is the difference between novice traders and professional traders. Professionals never trade with overconfidence. They trade with probability, discipline, and strict stop losses, knowing that even a high-probability setup can fail. Learn how to identify High Probability Trading Setups. Course Details: https://pivotcall.com/courses/

There is NO setup in trading that works 100% of the time. That's why every setup in trading is classified as either a High Probability Setup or a Low Probability Setup. A high-probability setup has a greater chance of working, while a low-probability setup has a lower chance. But remember, high probability never means guaranteed. As a price action trader, your job is to identify and trade only high-probability setups while always keeping a stop loss... Take Nifty – 22nd July (Wednesday) as an example. The Nifty broke below the Previous Day Low right from the first candle and continued to trend lower. Why did this breakout at opening was a high probability set up? Because multiple factors came together: • Previous Day Low (Demand Zone) was broken. • CPR was Narrow, increasing the probability of a trending day. • On the Daily Time Frame chart, price also broke below the sloping 20 EMA, which was acting as a support.