Quote from forrestang:
Joe,
Is there an explanation anywhere on how you put these levels to use?
I will do a video on how I trade them
but for now I will mention how you can use them
The levels I put up are done by hand not by a calculation
then there is the breakout and breakdown areas this is a
level where the market has a high probability of getting to it's
target once it gets penetrated
On the levels, you can look to find support or resistance, near or at
the levels I put out
Trading support areas are not to hard to do, resistance becomes
support once it have been taken out and support becomes resistance when
it is broken so when I do my intra-day trading I look for over bought signals
on my indicators at or near the levels and I will fade that area, same for oversold
areas for a bounce
It is all based on supply or demand, there may have been supply @ 1222-1224
today and I was looking for it @ 1222 so that was an area I was looking to short
but 1187 area was an area that in the past has been an area of demand as well
as 1193 so I would be looking for those areas to hold, if they do not hold I look for a break
then retrace back up to or down to then enter my position, I always want the market to prove
it self to me before I buy or sell.
I hope this helps
Good Trading
Joe Baker
