Key Levels Aims to capture 3 of the most significant points in price action
- Breakouts
- False Breakouts (Traps)
- Back Checks
These 3 points alone, if properly identified, can be some of the most significant points of movement in the price history of an asset and bring significant gains to traders, if capitalized on. Here are a few examples of these setups
Breakouts
Breakouts can bring significant rallies as the market swings one sided after key levels are breached. This entry type can bring large trending runs to follow. Momentum is on your side, but the trade off is a higher entry.
False Breakouts
Also known as a bull trap or a bear trap, false breaks can lead to swift and significant reversals and potential for a large and sudden move to the opposite side. When a key level breakout fails to hold, parties entering to capitalize on the "epic breakout" can get left holding the bag forcing them to exit at a loss, which can double the force of pressure. Traps can bring swift gains from good entry prices. However, price is still in a larger trend against you so momentum is weak, so price action is susceptible to roll over.
Backchecks
Back checks are pull backs in trend that find middle ground to the 2 areas already described. Both momentum and entry price are decent, but risk is defined as a key level has flipped offering entry with stops below demand, or above supply.
Combining these 3 methods helps to diversify risk, understand trend development, and bring steady gains. This script helps to identify these points to traders with analysis of key levels, price structure, and trend direction, while providing visual signals and alerts for when they occur.
Best of luck in your coding and trading and thank you for your support
An alternative way to use this script is to use it like a standard pivot point is formed. By selecting the source for the pivots to "high/low" and lowering max zone size, we can snap lines from significant points, rather than zones. In the image below I set the max zone size to .015%, and selected "High/Low" as the source. As you can see, these are still significant points of interest. A user may even decide to put 2 scripts on the screen - one for zones, one for high/low.
Also, I had a question on how a pivot is formed, so just providing a little more information on the script and how it is calculated.
Below is an informative picture displaying how the script looks left and right to establish a significant point.
Cheers, and take care
Key Levels has been revamped with ALL NEW signals to sharpen your trading.
With the integration of the BjCandlePatterns Library, pattern recognition is now available complete with visual and alerts. A multitude of popular reversal and continuation patterns has been incorporated with many custom filter selections to screen out more desirable setups. Please review the settings menu and the TOOL TIP (?) next to each setting for explanations.
Patterns can be highlighted with labels, or boxes, or both:
Additionally, also integrated is the power of the Bjorgum TSI indicator. To see the signal option, enable "Curl" arrow, which can show points of momentum change, or expose flag patterns at Key Levels as shown below:
Enjoy the new features!
Just another "I can't believe its free" Update here!
Key Levels is now equipped with labels to help you prepare those orders ahead of time with numbers displayed in visual cues:
Lines are drawn if extend boxes is not enabled to connect the levels to the labels. The offset is also adjustable in the menu.
Repainting control implemented for candle patterns. Option exists to wait for candle close before detection, or show potential patterns while they form
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Per un accesso rapido a un grafico, aggiungi questo script ai tuoi preferiti: per saperne di più clicca qui.
Declinazione di responsabilità
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Per un accesso rapido a un grafico, aggiungi questo script ai tuoi preferiti: per saperne di più clicca qui.