How to use levels

Repost from an older post.

I have received quite a few emails and DMs on how to use the levels.

I’m sharing this post again here.


One of the most common questions I get is how to use the levels.

These are NQ levels from Friday’s plan.

So we will be using limit orders and when the price decisively breaks the primary inflection point, we can place a limit order with stops(green arrow).

Then at the 12714 level (ochre arrow) we can take some profit and then so on and so forth.

When the price is coming down (mean reverting) we can use the right side of A to short(opposite of the right side of V). As you can see we could have shorted the red arrows about 4 times through the day.

We keep tight stops in either case and want to get at least our first profit target for half of the position with 1:2 risk reward or better.

The key rule is to not short a breakout and not catch a knife. Wait for the right side of the V thanks to the great Lance Breitstein.

Lance Breitstein 🇺🇸🌎 @TheOneLanceB

THE “RIGHT” SIDE OF THE V: such a powerful concept that many traders don’t conceptually understand. Just bc prices are same, doesn’t mean the e(v) in each moment is the same. Same prices on same chart can have DRASTICALLY DIFFERENT E(V)! (1/4)