Trading Levels

Of course that's assuming we get to the 99.50 area.

If there are still weak longs in the market we're likely to see a significant reaction to 99.00 and another drop.

:)
 
Quote from ScoobyStoo:

It's good to see someone on these forums who understands how markets work. It's obvious to me that you are familiar with the fundamental principles of trading. As you have stated, this game is all about correctly identifying these levels and then analysing how market participants react when they are reached.

It's as simple and as difficult as that.
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I don't think somebody understands how markets work just because they make an observation that price reacts at certain price levels. I watch & act on price action around certain levels every day, but I'm not so sure I can say I understand how the markets work. If I tried to explain it I'm sure one of those PHD's that write books on 'market microstructure theory' or something similar would make me look like a fool....................................but I do like me some price levels. :)
 
Quote from macattack:

I don't think somebody understands how markets work just because they make an observation that price reacts at certain price levels. I watch & act on price action around certain levels every day, but I'm not so sure I can say I understand how the markets work. If I tried to explain it I'm sure one of those PHD's that write books on 'market microstructure theory' or something similar would make me look like a fool....................................but I do like me some price levels. :)
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Of course you are right, anyone can pick price levels. I've seen hardly anyone on this site who can pick out the correct levels though.

Which crude levels you liking? I reckon 99.25 looks interesting now.
 
Sorry, been busy babysitting some new automation I am trying to get to go live.

The 95.70 level in crude held up well today. I have the low print on crude today at 95.34 which happened early last night.
 
Quote from ScoobyStoo:

Of course you are right, anyone can pick price levels. I've seen hardly anyone on this site who can pick out the correct levels though.

Which crude levels you liking? I reckon 99.25 looks interesting now.
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I'm pretty sure I don't pick what you refer to as the "correct" levels, so I'm just reading this thread to hopefully learn something.

Most important for me is the open & yesterday's high/low (Open outcry hours only).

Second I look for areas where stops could be run, and areas where the big players could find liquidity.

As the day progresses I also mark off the 7:00 & 8:00 close.

Looking at some charts I'm not really positive where you come up with 99.25. It was the last reaction on Feb 10th before price took off, but that's all I see.

Before today you mentioned 99.50. Not a clue where you get that either except for all the action prior to Feb 10th where price coiled around that area.

So as you can see I most likely do not pick the "correct" levels either. I'll just stick to my own special levels until I learn something better. :)
 
My two cents and levels for crude heading into tomorrow.

Another test and breakdown follow thru of the 95.70 level should bring us down to to the 92.25 level.

On the upside, 99.35 to 99.60 is the next upward resistance. If it can break and hold that, i see 101.65 as the first upward level to be tested.

I will post a chart of these levels next msg.
 
so ok, you showed us levels and that you can spot them somehow but it's not enough to profit, is it? would you care to do sth in that department? :) i mean, how do you actually trade them:confused: for the time being i must say that you are indeed good at showing people ' levels' ...:p
 
I trade them pretty much as I mentioned a few pages back. I wait for price to hit a level I have interest in and believe to be of significant value.

I then wait to see what the reaction to that level is and make a decision to go long or short. Depending on the timeframe I am looking at for that particular instrument, I may want a confirmation of a day or several days, or maybe just 15-60 minutes if I am playing a bounce back to a previous level.

I don't really think there is any magic to it and there are definitely not any guarantees, and you are right, just because you have identified a level that has a high probablility of being hit doesnt mean you have mastered anything.

But lets say for example one is watching what is going on with ES right now ... I would be looking at (for starters) are we seeing a significant increase in volume as we approach this level, is NQ / YM approaching significant levels as well at about the same time? How are they are reacting to those levels ... is it in sync with ES behavior, etc.

Those are just a few things I would be interested in seeing before making a decision.
 

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