Identifying high probability trading levels

[Soultrader 12]

Anytime you have pivots lining up with each other, they create a high probability trading opportunity.

 

Some key levels I will pay attention to are: value high, value low, daily pivots, previous day high/low, and open gaps.

 

On Sept. 1st 2006, the Dow mini gapped up above a critical resistance level and above value. This indicated a positive shift in market sentiment. As you can see, the value high pivot and the open gap is pretty in line with each other.

 

This level offered a great trading opportunity and the dead low for the day. Anytime the markets gap up above value, I will use the value high pivot as support to establish a long position. This is usually a high probability trading level.

[Lisa 10]

I like to use moving average clusters. They work fairly well on 5 minute charts. I also analyze volume. I will take a look at the last 5 days of trading action and if I see high volume spikes with a price reversal, I will mark those levels as significant.

[ElectricSavant 10]

Using trading levels has been quite a breakthrough for me in my trading. Discovering overheated zones in particular on the 5 minute chart.

 

But using levels is only half of it in my opinion.

 

For your short term trading to be successful you can use all or some of the following to enhance your hold.

• 
   
  
• Average in
  
• Basket Trade
  
• Stop & Reverse

 

By using levels with these other methodologies might give you the time to discover the wave you are in and use the combined approach to net you profit.

 

Michael B.

[Soultrader 12]

I use trading levels combined with market understanding through market profiel. I would like to ask a few questions regarding your methods.

 

By averaging in, do you mean adding to your position? Also what do you mean by stop & reverse?

 

Thank you.

[carter 10]

Using trading levels has been quite a breakthrough for me in my trading. Discovering overheated zones in particular on the 5 minute chart.

 

But using levels is only half of it in my opinion.

 

For your short term trading to be successful you can use all or some of the following to enhance your hold.

• 
   
  
• Average in
  
• Basket Trade
  
• Stop & Reverse

 

By using levels with these other methodologies might give you the time to discover the wave you are in and use the combined approach to net you profit.

 

Michael B.

 

Hello Michael,

 

I am somewhat confused about your methodology. Is it necessary to identify the wave when intraday trading? I agree that one needs to see the bigger trend. Perhaps I am not quite understanding what you mean by wave.

 

Would you mind sharing and explaining it?

 

Regards,

 

Carter