Rating Levels on a Stock Chart

Rating Levels on a Stock Chart

Key Items

·        The longer the time frame the more significant the level

·        The longer the consolidation the bigger the move when the level breaks

·        Aligning multiple time frames is imperative to gain the best entries

 

1 – 6

·        These levels aren’t important enough to trade with confidence against

 

7 – 8

·        3 – 4 tests of this level and the level held

·        Tested and failed on volume

·        3 – 4 tests on one side of this level and then the first or second retest from the opposite side

·        Gap fill area from a good volume move (2x avg daily volume)

9 – 10

·        5 or more tests of this level and the level held

·        1^st or 2^nd test of this level after it had been broken

·        Gap fill area from a  huge volume move (3x + avg daily volume)