How do YOU identify key price levels to trade?

[_eug_]

Pay attention to prior daily closes.

Ye i watch yesterday high, low, close as minor levels kind of like a speed bump and s/r zone of the hourly chart as major s/r levels where reversals are more likely.

 

[beerntrading]

Through trail and error I have been getting better and better at spotting price levels. I use price action with confirmation from the DOM to make sure that I am not the only one watching these levels. They are not exact to the tick obviously but pretty key areas.

I've tried being forward looking lately on S/R levels. And I think I'm batting somewhere around .500 on that--which it ample to use it profitably. Obviously, I have very little data to base this on, but the disproofs are fast and cheap, while the proofs are long (in duration) and profitable. This mostly considers fundamentals, but relies on a round price level (i.e. option strike prices would be a good list of possibles) to make the call. Sometimes I see tacit confirmation based on the options looking forward, but not always. I'm not sure I could describe my process algorithmicly so it would be useful to someone else though...

 

[Zodiac4u]

I am curious to hear about different approaches for identifying key price levels in the markets that you trade.

The obvious one I guess are swing highs and swing lows from higher time frames. Also previous day's high and low. I guess the close too if there is an over night gap.

What are other methods and tools that you use to determine key levels? How do you determine which ones are significant and which ones are not?

What are other methods and tools that you use to determine key levels?
A stupid easy one is look for a bar cluster, long above and short below but if you don't know
how to risk small or use money management, you wont last.

How do you determine which ones are significant and which ones are not?
If the level holds its significant.

Trading can be super easy or super difficult. If you are not able to see the easy, than you need to question what you think you know.

 

[jsmacksem]

What are other methods and tools that you use to determine key levels?
A stupid easy one is look for a bar cluster, long above and short below but if you don't know
how to risk small or use money management, you wont last.

How do you determine which ones are significant and which ones are not?
If the level holds its significant.

Trading can be super easy or super difficult. If you are not able to see the easy, than you need to question what you think you know.

If the level holds its significant. ALSO, if it breaks, it could also be flipping S->R or R->S.

I like using breakout levels for my approach. It makes sense to me and how I look at markets.

i.e...."price broke a significant TL here, this price level (zone) might be significant. " whether it's for a future reversal or continuation of original trend.

 

[Ryan81]

I write a bunch of ticker symbols on 3x5 note-cards and then I throw them down the stairs. The ones that land near the top I trade bullish, and the ones that land near the bottom I trade bearish.

 

[beerntrading]

I write a bunch of ticker symbols on 3x5 note-cards and then I throw them down the stairs. The ones that land near the top I trade bullish, and the ones that land near the bottom I trade bearish.

Haha. I'd looked at doing a shotgun approach to net short options trades...it's distressingly similar profits to my carefully selected entries.

 

[fordewind]

I write a bunch of ticker symbols on 3x5 note-cards and then I throw them down the stairs. The ones that land near the top I trade bullish, and the ones that land near the bottom I trade bearish.

i use dice

 

[Van_der_Voort_4]

I write a bunch of ticker symbols on 3x5 note-cards and then I throw them down the stairs. The ones that land near the top I trade bullish, and the ones that land near the bottom I trade bearish.

simply outstanding

 

[SunTrader]

I let the crowd trade key levels and trendline breaks. I do the opposite.

 

[JSSPMK]

I let the crowd trade key levels and trendline breaks. I do the opposite.

And you convinced yourself that by doing the opposite you'd increase the strike rate?