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Real-Time Price Levels Explained

imagePurpose of the real-time price levels tool is to allow you to see a market in its structural form as oppose to its serial forms (i.e. charts in various timeframes). The goal is to highlight the closest price levels that may affect your real-time trading decisions. At a glance, you know who your opponents are and which price levels matter most to them.

Clarity

Classic approach of having many charts in various timeframes can be difficult to work with because:

1. relevant information scatters around in too many places

2. too much information to process

3. time consuming to organize the information mentally

In narrow sense, when we day trade, one of the most important things we observe are the reactions at the various important price levels. If you have to consult 10 separate charts in order to tell which timeframes and what price levels the current price action is reacting to, you focus is lost and your ability to make your trading decisions is affected. The real-time price levels is the perfect trading tool that resolves this issue.

Display

The price levels are displayed in alternating background colors to make it easier to identify blocks of price levels. The price level nearest to the last price is marked and centred in the table if possible.

Every time real-time update happens it will trigger an optional alert to remind you.

It is designed to be simple and compact.

Price Levels

To keep the real-time price level display compact, the naming of the price levels are done with acronyms.

The names are created with a set of rules so they can be understood easily.

All price levels are create in one of the following ways.

1. STOPD levels:

Prefix Timeframe Price Level
P – Previous
C – Current
D – Day
W – Week
M – Month
Q – Quarter
Y – Year
H+100 – 100% expansion above by previous range
H+050 – 50% expansion above
H – High
M – Midpoint
O – Open
C – Close
L – Low
L-050 – 50% expansion below
L-100 – 100% expansion below

2. Pivot levels:

Timeframe Pivot Level
D – Day
W – Week
M – Month
Q – Quarter
Y – Year
R3 – Resistance 3
R2 – Resistance 2
R1 – Resistance 1
PP – Pivot
S1 – Support 1
S2 – Support 2
S3 – Support 3

3. Afterhours levels:

Prefix Price Level
A – Afterhour H+100 – 100% expansion above
H+050 – 50% expansion above
H – high
M – Midpoint
L – Low
L-050 – 50% expansion below
L-100 – 100% expansion below

4. Gaps

Open gaps from the past are represented in the following way.

Prefix Boundary ID
G H – High
L – Low
N – N-th gaps ago

5. Open pockets

Open pockets left not back filled.

Prefix Boundary ID
O H – High
L – Low
N – N-th open pockets ago

6. Others

In the future, if our research indicates certain price levels are useful, we can easily incorporate them into the system.

Examples

Following are a few examples of the price levels.

PMM – previous month’s midpoint.

DPP – current day’s pivot point

AH – afterhours’ high

PWH+050 – 50% expansion above previous week high by previous week range

GH1 – last open gap upper boundary

Notice that not all combinations exist.

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