Voodoo Levels - Daily Weekly Monthly Yearly Range [upslidedown]

💎 Overview

Voodoo Levels are a model for defining price action within defined ranges and their associated expansion levels. Levels detect volatility over a static timeframe and its associated expansion zone based off Fibonacci sequencing. This offers the user static levels at the opening price of the chosen timeframe. Paired with price action strategies, dynamic support and resistance, or order blocks this can be an extremely powerful trading system.

💎 Where to Use

Voodoo Levels work best on anything with high volume in the futures, metals, and crypto markets. Notably ES/NQ/GC/BTC/ETH/TSLA. Voodoo Levels can work on any timeframe and can help gauge where the market is headed and when it might bounce. It's my belief that the market is driven off algorithms that similarly calculate these ranges, thus these levels often look "magical." Once you see interactions with these levels and asset respecting this model you cannot unsee it.

💎 How to Use

• The model has a neutral zone or "mean" at the open. Expansion levels exist for category 1, 2 and 3 interactions in each direction (High = H, Low = L, Example: DH1). Using a methodology similar to smart money concepts, H2 and H3 zones might be considered a premium zone while L2 and L3 zones might be considered a discount zone. I've been careful with this system not to draw too many levels and fall into the "draw enough lines and one will stick" trap. There are hidden levels in between each key level that you can find using a 0.5 fib retracement tool meaning the midpoint of H2 and H3 might often be a critical resistance zone for an asset.
  
  
• The default mode ("Auto" timeframe in indicator settings) will make an assumption on which levels are most interesting based on your current chart timeframe. Low timeframe charts will show daily levels and as you increase timeframes to daily or weekly timeframes the levels will expand to longer ranges. My favorite timeframe is to utilize the daily levels. You can choose a static timeframe in settings if you prefer.
  
  
• I often look for H1/L1 entries within trend and then H2/L2 entries as a potential reversal. H3/L3 is often the max extension you will see on a trend day. I consider every zone as a potential take profit on an active trade an manage trades within this model.
  
  
• Depending on volatility and ticker, different levels will be magnets and potential reversal zones. Sometimes a certain market is driving towards a key level, for example NQ will often push towards a L3 target while ES might be pushing towards the L2 target. This is normal because tech is often a more important catalyst.
  

💎 Examples in Action

ES 7/14 DH2 reversal

TSLA 7/13 DL2 reversal

NQ 8/18 DL2 reversal

NQ 8/22 DH2 reversal

SPY 8/29 trend day through DH3