46# Level Trading
System of intraday time trade LevelTrading
Submit by Maximo Trader (Written by TraderNeo@mail.ru) 16/04/2013
Kind of system Trade on price levels
The trading tool EUR/USD (works on all dollar pairs - it is checked up)
The period Monthly, Weekly, Daily, 4 Hour, 1 Hour, 15 min
The size of a position Depending on force of level H1, and also from concurrence of a direction of movement of the price for more senior таймфреймах and concerning them to levels.
Construction of channels
The initial (Base) corner of an inclination is defined on the senior таймфрейме MN. As on the senior таймфрейме we see the most significant price movements for all history of the concrete trading tool, the strongest maxima and minima. On these significant maxima and minima we also cost a primary level. This inclination reflects a global price orientation (displacement of price movement, in this or that party).
In the further we both are guided the given inclination and we spend lines parallel to it on new maxima and minima.
The given price levels are that other as usual lines of support and resistance. Simply in difference from classical (horizontal) levels, in the given method of the analysis, levels of support and resistance change the price value in time.
For periods MN, W1, D1 - an inclination one and for a basis is taken base inclination MN. For periods H4 and H1 there is a small updating of an inclination taken with the senior таймфрейма. As levels are spent through crossing of shadows of candles, then that that on period D1 - a shadow of a candle, on period H1 a body of a candle.
As to lines on H1 I advise you to break lines which the price has passed in two
I wish to recommend to you, at construction of levels, to do updating a line (I have no in view of to change a corner of an inclination, and it is simply a little to displace a line), with the purpose of association with already available line, new peaks or hollows instead of to build a new line. And as таймфрейм H1, is last level of detailed elaboration and intraday time trade is conducted on it on it it is necessary to choose very attentively price movements for construction of levels. Because not noted price movement, can change completely a picture and lead to incorrectly chosen trading variant.
Direction of movement and input in the market
The analysis of a market situation and definition of a direction of the tendency need to be spent on
All таймфремам then it is possible to make a market picture and to accept trading
First of all it is necessary to consider two next таймфрейма. A price orientation
On the senior таймфрейме is more important, than on younger. Also it is necessary to watch for
Affinity of price levels on all таймфреймах.
On D1 - an orientation of movement ascending.
On H4 - descending.
On H1 - ascending.
Hence while the price has not reached the bottom level on time H4 and is kept
Descending orientation, on H1 we continue to consider an input in shorts from top
Sometimes at a level the price starts to be trambled down upwards-downwards that punching it on diving again under it, it is not necessary to hasten in such situation, necessary to observe a little to understand where it pulls more.
Very often after breakdown of a level downwards the price again tests a level but already
From below-upwards and after that continues descending movement.
The special attention is necessary for giving levels the price on which there is a congestion of levels on Н1 and Н4 or Н4 and D1 such congestion always gives the raised importance of the given price level and can quite become strong resistance or support.
After strong movement it is necessary to wait formations or acknowledgement of price levels and only after that to consider possible trading variants.
The input is carried out on the basis of analysis H1 of the period and a direction of movement and levels on seniors таймфреймах. Пробитие, the release is defined on the importance of a level and on candle combinations.
The inclination for an hour gets out also on peaks and hollows. Well when the line passes so, that the last support to become resistance. Well and certainly to consider it is necessary подтверждённость for a line - from two and more control points at a level.
Lines spend, through congestions of shadows of candles. Instead of it is exact on maxima or minima
As to a direction of opening of a position I recommend to open in a direction of movement on the senior таймфрейме. For Н1 to open positions in a direction of movement H4.
At descending movement on period H4 (from the top border to bottom), at trade on period Н1, short positions on a release from top levels N1 or on breakdown of bottom levels H1 open ONLY. Long positions do not open. Accordingly on the contrary, at ascending movement on period H4 (from the bottom border to top), at trade on period Н1, long positions on a release from bottom levels Н1 or on breakdown of top levels H1 open ONLY. Short positions do not open.
Additional criterion of an estimation of breakdown or отскока, except for подтверждённости and forces of a level, serve candle combinations.
From candle is better work: doges, absorption, молот and hung up. And also stars and model харами. Candle combinations at trade on Н1, it is better to look on smaller таймфреймах M30 and M15 because if to wait closing hour the market will already leave from a level.
Отскок from a level it is necessary to expect only in a direction of movement on the senior таймфрейме (the account of a current trend). If on Н4 there is a descending movement, means on H1, warrants on отскок are exposed from top levels with the purpose of the bottom levels
Definition of probability of breakdown
Definitions of probability of breakdown:
1. The channel too narrow - the probability of breakdown is maximal... The narrowness of the channel - is less 40 items
2. If the price was near a line of the channel, and having punched it has left more than on 30 - 40 п it is defined with breakdown on hours (on others таймфреймах it is similar necessary to define on another, 30 п - for trade on интрадей).
3.определение the existing tendency in the market...
4. Breakdown proves to be true, if three hour candles were closed after breakdown of a level...
5. If the price has hit about a level which has punched and is again cunning further...
For everyone таймфрейма there is a certain life cycle of movement on defined channels (a trouble that is usual when the channel appears also we we start to trade on it, the price "meanly" passes in other price channel)... And it is good for considering too, it is possible to use waves Эллиота... They not bad show representation about a site of the price in channels...
In the pictures Level Trading forex system in action.
1 Buy 0.5 1.2011 stop 1.1986 profit 1.2061
Buy 0.5 1.2011 stop 1.1986 profit 1.2061, SELL 0.50 1.2195 STOP 1.2235 PROFIT 1.2155
3 Current working price level H4 passes through a mark - 1,2027
The bottom price level, is bottom level D1 of the perd - 1,1978
ioTop price level H4 passes through a mark - 1,2090
Possible variants of trade from working price level H4:
1) Warrant BuyStop - 1,2046 S/L - 1,2015 T/P - 1084
,2SellStop (Turn) - 1,2015 S/L - 1,2046 T/P - 1,1986
2) Warrant SellStop - 1,2015 S/L - 1,2046 T/P - 11986
,BuyStop (Turn) - 1,2046 S/L - 1,2015 T/P - 1,2084
4 As to period D1:
Current working price level D1 passes through a mark - 1,1978
The bottom price level, is bottom level W1 of the ped - 1,1862
rioTop price level D1 passes through a mark - 1,2146
Possible variants of trade from working price level D1:
1) Warrant BuyStop - 1,2022 S/L - 1,1948 T/P - 12129
,SellStop (Turn) - 1,1948 S/L - 1,2022 T/P - 1,1877
2) Warrant SellStop - 1,1948 S/L - 1,2022 T/P - 11877
,BuyStop (Turn) - 1,2022 S/L - 1,1948 T/P - 1,2129
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