If you are a Day Trader, it is important you are familiar with certain Key Levels that come in to play each day.
At minimum, you need to be aware of the following Key Levels:
Other Key Levels that are useful are the Opening Range (ORB) High and Low as they define if we will chop all day or set a direction.
Finally, if you have a watchlist with levels, you will want to mark those levels on your charts.
How To Trade Key Levels
The best way to trade key levels is using the Break Hook and Go.
The Break Hook and Go (aka Break Retest Bounce) technique requires you to patiently wait for a key level to break, then retest and hold, before continuing.
This allows you to confirm the level is valid for the day and is holding as key support/resistance.
The retest after the break confirms its strength, and then you can enter the trade.
The Cash+ Key Levels Indicator
LEVELS FROM PRIOR DAY AND PREMARKET
The Cash+ Key Levels Indicator automatically plots the previous days High, Low, Close levels, and the Premarket High and Low levels on your chart.
It will also allow you to enter values for any watchlist levels, manual Fibonacci Levels, and ORB Levels to give you a single indicator with important levels to be aware of.
The indicator will also plot the 9/21 EMA cloud to help you clearly identify the bullish/bearish trend for the day.
The above $SPY 5m Chart shows the ORB15 levels for the day (GREEN), along with yesterday’s High Low Close levels (GOLD), and Premarket levels (BLUE).
You can see how on this day the Premarket Low acted as strong support soon after open, then later in the day we broke below the Premarket Low as well as Yesterdays Low. Yesterdays Low then became resistance and then support.
The huge advantage of using the Cash+ Key Levels indicator is it reduces the manual work to draw these levels accurately each day, and has been a game changer in my trading.