Today I want to share with 1 one type of key levels and also explain why it's so profitable for you to use it. This knowledge will save you years in trading and thousands of dollars.
For a start lat`s discuss some fundamental rules in trading:
1. We trade probabilities. It means it's impossible to say with 100% accuracy current signal will close with profit or not but it's possible to say that if we open 100 entries we will close 50% ... 60% or 70% entries in profit.
2. You don't need to hunt for 100% accuracy. That's one of the most common mistakes of freshers because if you will learn what is Risk / Reward you will understand how really you can make money in trading. You can be profitable even if you have 30% — 40% of profit deals if you take enough risk/reward.
Example of risk-reward. Just imagine that you have a risk per 1 position $100 and you always set potential profit (Risk/Reward (R/R)) 1 to 4 (in 4 times bigger) $400. If you will get 3 losses and 1 positive entry you still will be in profit. Calculations: -$100 -$100 -$100 + $400 = +$100. It is only 25% accuracy.
3. You always need to use the same risk per 1 position only in that case your mathematical expectancy will work. I will write more about it in the future posts if this idea will get more than 100 like.
When we trade key levels we get: - Accurate entries. - Low predictable risk. - Potential profit is in many times bigger than a risk.
Mirror level is: Support become Resistant or Resistance become Support.
How you can find a mirror level? Drow key level and wait when the price will break it. Below I will show you how I do it. Key levels better to build on:
- Trend change points - Many daily candles bounced from one level. It will be the most powerful levels which accumulate a lot of volumes.
Examples:
EUR/USD: Gold: SP 500: OIL: BTC/USD:
You can see that this system works on all markets.
P.S. It is only a first part about mirror levels. I will write more about: how it`s better to find levels on a chart, meanig of it and how big players accumulate volume using such type of key points if this post will reach 100 like.
P.P.S. Write in comments about what questions you have about Mirror levels.
Hi Yuri, this is indeed great. But how do you quickly spot it when resistance change to support using a small candle breakout? Like SP500 and Gold
Doraemon_1_2
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nice
UnknownUnicorn6257563
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NICE WORK.
tumsah
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Much appreciate it bro, thank you.
I always mark them correctly but rarely got in as I can not keep monitoring. is there a way to set limit orders around these levels?
geeyhian
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how do we determine if it's a trap or a continuation of the bias trend? Candlesticks?
thank you!