Very, Very Proprietary Stuff

How does the joke go again? My *****levels, *****my *****zones. It’s always somebody’s key area of interest. Very proprietary — only I can find them, nobody else can. They’re the best zones. Trust me on this. When they work, I’ll be sure to post it on socials and when they don’t, well, they never really existed anyway. Also, don’t ask me how to execute on them — just know that something ended up happening from there, and I told you some time in advance. **“Given in advance.”***

Don’t Overcomplicate Things

Unlike what some may lead you to believe, you don’t need to do any 360 No-Scope A5 Wagyu Combo Wombo R2D2 market analysis to come up with very solid high timeframe levels and zones. In my experience, I’ve found that the most obvious spots are always the most reactive and most reliable. The information is more obvious and the entire market can see it. This is also after they’ve collectively made the decision to establish that key swing / level / zone in the first place before coming back to it this time around. It has real weight to it.

The market is always making a series of decisions before an eventual outcome. When the market deliberates — when it builds a node from two-way trade, it is in the process of finding out whether there are more buyers or sellers willing to transact in that range. The break of that node is the eventual outcome and answer. That very decision is what gives me the proper information and context to determine if it’s a spot worth marking as a key area of interest. This is even more effective when coupled with high timeframe MGI (market generated information) such as the weekly open, prior week high/low, prior week range, etc.

Example 1

In this example, I’ve marked a zone for reoffer based on volume. What makes this particular spot interesting to me is the fact that it’s the most recent build of volume that led to a significant downside move. This is where the market has provided the information that there is a lot more sell interest than buy interest. The range of this node saw 3 days of activity — eventually leading to all of the buyers becoming offsides and liquidating. With that information, I’m speculating that we will likely find a reoffer upon the first attempt back into it.

Example 2

This example presents two rebid zones, but for different reasons.

The leftmost zone is marked from the most recent build of volume that led to a break of the balanced range to the upside. Upon return, I would expect those same participants to bid those prices again for continuation higher.

The zone that comes afterwards is from the context that, as the market tested downside into the prior zone for the second time, it not only still showed a lack of downside interest, but also a willing bid that stepped in just above it. The two-way tape builds that node, and upon seeing it rip to the upside, we now know that there are buyers in the market who are willing to bid those lower prices — more so than there are sellers willing to sell those lower prices. We can also see that this zone holds two attempts back into it and, upon finding no further sell interest yet again, rips even higher after the second attempt.

To follow this method of finding and contextualizing these high timeframe zones, it’s important to understand these concepts:

• A node is built from two-way trade.

• The direction afterwards will tell you whether there are more buyers or sellers in that zone.

• The bigger the amount of inventory/volume, the more impactful the zone.

• The stronger the actual move, the more likely it will find a rebid/reoffer upon revisiting.

• Upon revisiting, if volume shows even less interest than what created the zone, it’s quite literally impossible for it to be broken through. If it held through two-way contention, it will likely hold with even less aggression this time around.

Example 3

In this example, the zone is actually marked based off of the lack of volume. In the profile that it is drawn from, we can clearly see where the market showed absolutely no bid interest as the market fell. There is heavy sell-side imbalance in this range. Upon revisiting, there is no build of volume — no interest. This further confirms the same information that was relayed to us prior. The second attempt back is essentially the same outcome — still not enough bid interest in that range. The market then reoffers yet again. This, in tandem with price advertising below prior week’s value and range, while volume is also showing acceptance lower, provides very powerful context.

Examples 4-5

Sometimes, it’s as easy as drawing a line to mark a swing point. Most of my areas of interest are zones marked based off of volume, but there will be times where I’ll simply park a line somewhere based on inflection points that precede a return into volume, or an area with a very significant drop-off of volume.

A Simple Approach > A Complicated One

Again, you can see how my market lens remains fractal. This will continue onwards into the lower timeframes, all the way down to the way I execute on the DOM. All of my zones and lines are simply reference points, rather than hard levels. I simply want to make note of those areas of interest and see what the market chooses to do above or below them.