Lecture Notes on Trading Levels and Decision Points

Automatic Levels and Decision Trades

• Automatic Trade Setup:
  • 4-hour origin at 440 as the top priority.
  • Front side at 792, less greedy and premium.
  • Automatic trades are not taken on every spot, they require decision-making.

Key Automatic Levels

• Top Side Automatic Level:
  • 31440 is a must-take level, protected by a 4-hour origin.
• Bottom Side Considerations:
  • Weekly backside at 28,290 with a 4-hour protection origin.
  • Current range lacks automatic levels on the bottom.

Decision-Making in Trades

• Automatic Levels vs. Decision Trades:
  • Automatic levels are preset trades.
  • Decision trades are evaluated in real-time.

Technical Analysis of Levels

• Testing and Origins:
  • Check historical origins and tests to identify valid levels.
  • Daily, 4-hour, and hourly levels are crucial for determining trends and breaks.

Identifying Trends and Support

• Trend Creation and Support:
  • Polarized moments and trend creation are key for supporting moves.
  • Importance of creating trends to support upward movements.

Profit Capping and Trade Management

• Profit Capping Levels:
  • 4-hour level profit cap around 1.5% if trend holds.
  • Decision-based levels are marked for short-term trades.

Strategy for the Day

• Automatic Level on Top:
  • Define greediest point as automatic for top-side trades.
• Decision Trades on Bottom:
  • Multiple decision points imply the need for scalping on the bottom side.

Conclusion

• Trading Plan:
  • Define automatic levels and decision trades clearly.
  • Use technical analysis to inform decisions.
  • Manage profits with caps based on level strength and trend support.

These notes summarize the key concepts of trading levels, distinguishing between automatic levels that are must-take trades and decision-based trades that require real-time analysis. Focus is placed on using historical data to analyze trends and origins, and managing trades with profit caps based on market conditions.