Earlier today we released a 7 minute video about the subject we are about to talk about on our Youtube Channel, the video is referenced below and is rather important to watch as it will make our job easier to educate you on just how important these 3 key price levels of support and resistance are to day trading!
Ok now its time to being our, now regular, Thursday blog post in which we go over specific topics and focus on teaching you, the trader, what works for us!
Here's the video we released earlier today on our Youtube channel, it will help you understand better what we are about to talk about:
As you already understand we are going to be speaking only about key levels, specifically the ones I use the most these days... they are,
Daily high (and previous days high)
Daily low (and previous days low)
VWAP close from yesterday
Lets kick off with the Daily High and Low resistance and support levels.
These are levels of extreme daily highs or lows and asset can make, keeping it mind that if a daily high is broken, or a low, we could expect a decent move to take place. This does not mean that you can ride the assets price to the moon or to hell, it just means a move could occur and you have a chance to make a buck!
Look at the example below, the blue vertical lines are period separators, this means that a new day begins and ends at them. *Feel free to click on the image to enlarge it.
Now if you have watched the video above you will understand exactly how I made a profit trading the DAX at these levels today, eventually after 14:30 GMT I moved over to trade the NASDAQ and repeated drawing these levels again.
You don't need to go too far back in time, this week or the last 3-5 trading days is more than enough info for a day trader.
I review these levels like a religion these days... before I would map much more levels, but now I have simplified my trading to the extent where all I care about is what is the current daily high and low, plus the other key level I am about to share with you guys soon!
I have come to a realization that price loves to gravitate and test these levels, so what I do is I focus on price action a lot to determine which level might be tested next, I can hoever never be really sure... so I focus on highs and lows. Allow me to share an example:
The red "X's" show that price is persisting down and forming a daily low, eventually price action starts to form higher lows, blue "X's" and that is when I was gaining conviction that price could head up to the daily high or at least try to come close to it, I waited for our system to give me a green light and I closed my short and went long, profiting on both moves and having a clear target.
Now the VWAP, white line on the chart, plays a crucial role to the PrimedTraders Predator system, which you can learn for just 49.99 by pressing here. We are about to talk about the 3rd most important level and it has everything to do with the VWAP.
The 3rd key level is the closing price of the VWAP, I have mapped them with white horizontal lines, and only focused on the important ones, the ones that have not been tested.
In the video above I explain that I have a short on the dax and my taget is the VWAP CLOSE (bottom one) and that literally hit, once it hit the DAX started forming strong bullish sings with price action, on the lower time frames, such as higher lows and higher highs... which eventually took the DAX all the way back up the the daily high which ironically lines up perfectly with an untested VWAP level from ealier in the week, specifically 2 days ago.
What you need to keep in mind is that these untested levels become very, very important in the near future, hence why I focus on them so much!
Now, if you purchase our course above you will get all of our indicators, and as you can see on our cTrader platform you have an automatic print of the "Last Days VWAP close" which comes up as yellow dots.
Ok, I guess we are done for today... we will be adding a much more comprehensive video about this soon so make sure you subscribe to our blog and get notified when this vitally important to know post is released!
I'd like to take this opportunity to thank you for reading and watching and I hope that you've learnt something valuable!
WHAT TO DO NEXT:
If you've read this whole blog post I'd suggest you give us a try and join the PrimedTraders community and course, what I can promise is that you will learn a lot of specific information, information no one else can teach you, but I can't promise you'll succeed as your success is entirely your responsibility.
Me and my community will do everything to assist you to become a real primed trader with real skills and real results!