Key Level Trading Strategy For Beginners
A chart + key levels is like peanut butter and jelly... perfect
Here is my basic strategy🧵👇
A chart + key levels is like peanut butter and jelly... perfect
Here is my basic strategy🧵👇
What Is A Key Level?
A key level is a price that has been used as support or resistance recently. They are important for traders because price will often continue to respect these levels
Wordy definition👇
A key level is a price that has been used as support or resistance recently. They are important for traders because price will often continue to respect these levels
Wordy definition👇
The Strategy
1) Find & mark Key Levels
2) Wait for price to interact with Key Levels
3) Wait for a reversal or breakout supported by volume
4) Enter responsibly and make money
1) Find & mark Key Levels
2) Wait for price to interact with Key Levels
3) Wait for a reversal or breakout supported by volume
4) Enter responsibly and make money
Before we start, please do me 2 favors
Like & share the top post of this thread
It helps spread the education & I like to see how many people are appreciating these things
Like & share the top post of this thread
It helps spread the education & I like to see how many people are appreciating these things
Finding Key Levels
Finding our key levels is simple. I use 1 day high, 1 day low, 5 day high, and 5 day low
This will also work with premarket high/low, today's high/low, all time high/low, 52 week high/low, etc
Finding our key levels is simple. I use 1 day high, 1 day low, 5 day high, and 5 day low
This will also work with premarket high/low, today's high/low, all time high/low, 52 week high/low, etc
Marking Key Levels
I prefer zones with 10-20 cents on both sides of the actual Key Level (for scalping)
This gives my Key Level a bit of cushion. Price will not always respect exact levels
You're free to use lines, zones, or whatever works for you
I prefer zones with 10-20 cents on both sides of the actual Key Level (for scalping)
This gives my Key Level a bit of cushion. Price will not always respect exact levels
You're free to use lines, zones, or whatever works for you
Price Interacting With Key Levels
Each time price touches our Key Level, we have a potential trading opportunity
In this example, there are 4 different trading opportunities
Each time price touches our Key Level, we have a potential trading opportunity
In this example, there are 4 different trading opportunities
Reversals & Breakouts
Whatever move occurs at a Key Level NEEDS to be supported by volume
On the left, our bounce has high relative volume + a lower wick
On the right, our breakout has high & increasing volume
Whatever move occurs at a Key Level NEEDS to be supported by volume
On the left, our bounce has high relative volume + a lower wick
On the right, our breakout has high & increasing volume
Entering Responsibly
I always wait for my reversal setup or breakout setup candle/candles to close & then enter
Enter with whatever system works for you. Personally, I like to wait for a low volume pullback candle. Helps me stay disciplined and not chase
I always wait for my reversal setup or breakout setup candle/candles to close & then enter
Enter with whatever system works for you. Personally, I like to wait for a low volume pullback candle. Helps me stay disciplined and not chase
My 2 Cents
-If you're gonna use lines, treat them like a rubber band. They can bend a little
-Use your Key Levels to find smart stop loss areas
-Volume HAS TO SUPPORT THE MOVE
-This works for swing trading, you just have to increase your high/low timeframe
-If you're gonna use lines, treat them like a rubber band. They can bend a little
-Use your Key Levels to find smart stop loss areas
-Volume HAS TO SUPPORT THE MOVE
-This works for swing trading, you just have to increase your high/low timeframe
YOU MADE IT TO THE END OF THIS THREAD. YOU'RE A BEAST
If you like this strategy & content click this link & check out all my other crap
Link: linktr.ee
If you like this strategy & content click this link & check out all my other crap
Link: linktr.ee
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