How to create Limit Levels. - Page 4
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Thread: How to create Limit Levels.

  1. #31
    Super Moderator Gulfstream's Avatar
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    SCENARIO 7

    This time, let's take the hidden limit level, and even with the 1W timeframe for the pair USDCAD

    As you can see, there is LL 1.3319 and not at first a clear picture, where the false. Breakdown is, where a complex false breakdown is, what is a rollback, what is the trend. But we don’t need it that much. For us it’s important that we are now under LL and accordingly we will short while we are there. Whence to short - from the LL prices of course. Where to put a stop? Here you can already look up the last closest false level breakdown, and accordingly the technical stop behind him. But since h1 too big, it is better to put the calculated 0.25% of the price level, i.e. 33 points. If we go down to the daily timeframe, then absolutely nothing changes, only that we can see more point-to-point reactions on our LL, with both in history, and most importantly locally. And also, instead of a simple false breakdown, we see a complex false break that adds confidence.


  2. #32
    Super Moderator Gulfstream's Avatar
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    SCENARIO 8

    This time we will consider not the best setup, but the ideal ones are not found everywhere. For the EURUSD instrument there is an excellent limit level, hidden right in the middle of the trade. There is also a complex false breakdown. This begs the question why the setup is not perfect, because LL is excellent, complex false breakdown, what else do we need? The problem is that the size of a complex false breakdown is far beyond acceptable. And accordingly, you can trade in long with either a calculated Stop Loss, or wait for price interaction with LL. The whole problem is with the size of the stop, although when using the calculated - the picture is really perfect. To be or not to be? I think "to be", but do not rely on a successful entrance on the first time.


  3. #33
    Super Moderator Gulfstream's Avatar
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    SCENARIO 9

    Now we look at the setup with a complex false breakdown of the mirrored LL on GBPNZD. There is a LL 1.9288, which in the history looks like a mirrored one. There is his local confirmation point to point. There is a good complex false breakdown of three bars. You can go to the short from the LL itself. The only thing - technical stop loss does not fit into the frames of the calculated 0.25%, therefore we use the calculated one. Given the nature of the tool itself and a quality setup – as a goal you can consider the option with more than 1: 5.

  4. #34
    Super Moderator Gulfstream's Avatar
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    SCENARIO 10

    And lastly, because in this section there is a limit on the number of "online" forecasts, let's take a look at a good setup from the stock market for CSCO paper. In this setup there is a large part of the small important details disclosed in this topic, because of this it is complicated, but nevertheless it can be traded.
    There is a mirrored LL 45.94. Local level confirmation, not like everywhere, but from the reverse side, but as I said earlier, this is normal. Also, there is a complex false breakdown of this LL, but it is in the form of gaps, about which there is also a separate description in the subject. Entry in short - of course from the LL itself, but the stop loss, - technical, for a false breakdown, but it's a bit too much. As an option we could use the calculated one, but because I used to say in the subject - the calculated one does not fit all the tools, and in such cases, we take into account 1/4 of average volatility. Specifically here, I would put a stop 1/4 of the size of the bar above the level.
    And in addition, preferably on the opening of the stock market is to wait 5-10 minutes, until everything calms down, and then place your order, if the overall situation is not going to change during this time.


  5. #35
    Super Moderator Gulfstream's Avatar
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    PS

    Overall, as of today, I have nothing more to add, regarding my view


    on the trade, as well as on the Limit Levels themselves, and their definitions on the chart and setups for their trade. I tried to explain everything up to the smallest details, but still, there is vision of the chart as I see it.
    Unfortunately, I can’t convey it in words, because this can be achieved only through personal experience, reviewing thousands of charts, LL, setups and outcomes. Other in words - you need to ACT independently, the base for this TS I did as I promised at the very beginning, and IMHO – it looks to be not bad. If, after a while, I have something to add, I will try to share it with you.
    And also, if there are "right" questions regarding the topic - I will try answer them. By the word "right" I mean those that are specific to the TS itself, and on the approach to trading.
    Although the market is one for all, everyone has the full right to see it in their own way, and only the final result of the work done can be judged on this, and the rest is a waste of time.
    Thank you all for your attention, wish you all the benefits and large profits.

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