Key Levels and what you need to know about them
There are Key Levels on every timeframe. But the ones that are relevant are the ones that agree in between timeframes. There are Swing Key Levels, Intraday Keylevels /agree on H4 + H1) and Scalpers Key Levels (I use those that agree on H1 and M30).
Key Levels are zones where the market has not decided yet which direction it will choose, but as a trader you have to be one step ahead and speculate on it.
Key Levels of higher time frames are always dominant. So when you scalp make sure you are not landing in between the buyers and sellers fight of swing or intraday traders.
How to apply on low risk:
- Have a D1 ceiling and floor, have an H1 ceiling and floor. Generally don't sell on floors and don't buy at ceilings.
- Look for reversals around those areas (3 peak patterns or longer consolidations rejecting an important zone)
- Be careful at Key Levels (that is everything in between the floor and the ceiling)
- Generally buy at floors and sell at ceilings when you have:
a. indication of reversal
b. break of structure indication with candle close (not few pip around the zone, it should clearly break with close)
c. momentum pushing like "engulfing patterns", long candles (towards your direction), long wigs (towards the opposite direction), Dojis (indicates end of wave and short term change of direction)
How to apply on middle risk:
- buy when it breaks the ceiling with volatility specific stop loss of asset
- sell when it breaks the floor with volatility specific stop loss of asset
Also take a look at my post about specific volatility of assets. Linked below.
Key Levels are zones where the market has not decided yet which direction it will choose, but as a trader you have to be one step ahead and speculate on it.
Key Levels of higher time frames are always dominant. So when you scalp make sure you are not landing in between the buyers and sellers fight of swing or intraday traders.
How to apply on low risk:
- Have a D1 ceiling and floor, have an H1 ceiling and floor. Generally don't sell on floors and don't buy at ceilings.
- Look for reversals around those areas (3 peak patterns or longer consolidations rejecting an important zone)
- Be careful at Key Levels (that is everything in between the floor and the ceiling)
- Generally buy at floors and sell at ceilings when you have:
a. indication of reversal
b. break of structure indication with candle close (not few pip around the zone, it should clearly break with close)
c. momentum pushing like "engulfing patterns", long candles (towards your direction), long wigs (towards the opposite direction), Dojis (indicates end of wave and short term change of direction)
How to apply on middle risk:
- buy when it breaks the ceiling with volatility specific stop loss of asset
- sell when it breaks the floor with volatility specific stop loss of asset
Also take a look at my post about specific volatility of assets. Linked below.
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