Lecture on Breakout and Origin Levels

Introduction

• Discussion on Neil's setup for a breakout.
• Focus on understanding cycles of accumulation and distribution.

Breakout Setup

• Neo's Breakout Attempt:
  • Attempt to break the origin level.
  • Importance of the 1625 valley.
• Trend Analysis:
  • Swing low to low creating a new low.
  • Importance of holding and breaking uptrend.

Understanding Origin Levels

• Concept of Origin Levels:
  • Origin levels play a crucial role in breakouts.
  • They are often misunderstood or invisible at first glance.
• Cycle Recognition: Accumulation and Distribution
  • Understanding cycles helps identify origin levels.
  • Visualize the cycle pattern: 1-2-3-4-5-6 (Origin Level).

Practical Application

• Chart Analysis:
  • Marking valleys and attacks in the cycle.
  • Identifying untested valleys and back tests.
• Examples:
  • Attempting to gain and fail at certain valleys.
  • Marking the correct origin level to avoid missed breakouts.

Importance of Origin Levels

• Advanced Accumulation and Distribution Cycles
  • Origin levels result from these cycles.
  • They signify critical breakout points.
• Identification:
  • Origin level as the original or initial level of a cycle.
  • Importance in understanding breakout and resistance.

Insights on Trading Strategies

• Valleys and Laddering:
  • Understanding how to attack valleys and gain trends.
  • Importance of knowing origin levels for strategy.
• Rare Events:
  • Unique cases of failed breakouts becoming future origin levels.
  • Not all levels are straightforward; some may be hidden.

Conclusion

• Key Takeaways:
  • Identifying and understanding origin levels can enhance trading strategy.
  • Recognizing cycles and trends is essential for breakout success.

Additional Resources

• Free Content and Community:
  • Encouragement to join Patreon for advanced insights.
  • Engage with other traders and discuss strategies on various platforms.

Call to Action

• Support and Growth:
  • Engage with the community and support through donations or subscriptions.
  • Join discussions on trading platforms to enhance collective knowledge.