Levels

The Levels tool finds the price extremes (highest high and lowest low) over the last custom lookback period. It then uses the current price to calculate the rise percentage from the low to the current price, and the fall percentage from the high to the current price.

The larger percentage displays the direction of price’s largest volatile move during the selected time period, and shows whether buyers or sellers controlled the market during the period.

The high and the low can be used as primary price targets before reversal or correction when price is trending, as these levels act as support and resistance for price. These levels are useful in determining when to look for particular price action such as reversals and breakouts/breakdowns.

Outputs can also be utilized to judge the strength of a trend based on the size of its pullbacks and its distance from highs and lows (strong breakdowns and breakouts will have very low rise and fall percentages respectively).

In trending markets, a large rise percentage is a market environment unlikely to soon touch the recent low, while a large fall percentage is a market environment unlikely to soon touch the recent high. This is a helpful consideration when managing risk for a trade.

Use Levels with large rise and fall percentages on shorter timeframes to recognize likely “points of no return,” or more probable opportunities to enter a trade with no drawdown before being in profit.