The practice of applying the level of senior scale when trading intraday

This post is dedicated to
practical application levels
senior scale, published in this
blog, when trading intraday, the futures
Russian market for two instruments: futures
on the RTS index and futures on the ruble / dollar.

A method for constructing
levels beyond the scope of this article.

Using layers
higher timeframes (day, 4 hour and hour)
in trade within the day, increasing the likelihood
positive outcome of the transaction and allows
increase, typically used
fixed Take Profit. under the trade
intraday trading refers to
scales 1, 2 and 5 minutes, without the transfer position
the next day.

For each instrument
published three graphs with plotted
they levels. a trader needs
self-transfer levels
scale 4:00 and the day on the chart M60,
desirable highlighting the colors, excellent
on the levels of the color that is used
timeframes for 60 minutes. If the level of one
and the same for different timeframes,
it is necessary to note the color that
It used to refer to himself
the eldest of them. According to the results should turn out
approximately the schedule:

Here the level of timeframe
60 minutes, marked in white color, for N4
used yellow, day
level in blue. levels above
the last closing price will be
resistance, lower - Support.
Next, look at the chart from right to left
from the right edge, and plan to deal
day. By resistances planned
Opening short positions if the price
I have not tested the level, or tested,
but not more than once. by supports
plans to open long positions
on a similar principle.

In the event of breakdown levels
may change your appointment. Level
which has been supporting, may become
resistance, and vice versa. Therefore
, if the graph is the level,
which price has tested twice, and
active level is the resistance,
logical plan of him deal
after the break, but as the level of
support.

It is easily seen that
in some places, schedule levels
different scales are sufficiently
close (within 400 to pips
Futures on the RTS index, or 40 - for
Ruble / dollar). These regions form zone
supports / resistances. The meaning of the application
three levels of scale on a single graph
and it is to detect data
zone.

Different levels and areas
timeframes, have a different weight. The older
scale, the greater the level or area.
Thus, the area formed from
the daily and 4-hour levels will
definitely stronger than the zone formed
hour levels.

first, consider
input level of technique. As
Example cite drawing, in which
Left graph scale 1 min
for futures on the RTS index, and on the right -
scale of 60 minutes, with marked daytime
and 4-hour levels.

As can be seen from the presented
screenshots, test level senior scale,
1-minute chart, looks like
false breakdown. In most cases
it is not confirmed by volume, however,
increased volume at the level test,
certainly is an additional
argument for opening a position.

Place stop installation
It is calculated as follows. If
history in the terminal allows you to find
breakout candle on the test level,
on a scale of 1 min, Stop will
is equal to at least spark minus 50 points for
Futures on the RTS index (or minus 15
points for futures on the ruble / dollar)
for a long position, and a maximum of candles
plus 50 points (or 15 points for
Ruble / dollar), if open short
position. Breakout candle determined
as the first candle level crossing
body, if you look at the chart on the right
left. If in the history of the breakout
Candle can not be seen (actually for the terminal
QUIK, stop
is set for minimum or maximum
candle, which was tested levels.

If the deal
It planned from the support zone or
resistance range of entry points
it becomes more difficult. In the scheme below
are three of the many possible
options price behavior at the borders
area:

And like screenshots
situations in the real market:

Scheme A:

For scheme B:

For scheme B:

From the above schemes
shows that the level of the zone, from which
may develop movement, may,
and large, be anything. In this way,
entry rules from the support / resistance zone
It can be summarized as follows:
technically correct to go against any
of levels, however, the stop must be
for the entire area completely. If the zone is enough
wide, it is possible to schedule the input from
near level, and "reconnecting" to deal
by far. Set foot on
principle described above.

The graph in which
levels with three timeframes already merged
available for a fee.
This was done on purpose, as in the process
transferring levels, the trader subconsciously
It analyzes the market, which is favorable
effect on the results of his trade.
Nevertheless, it subscribes to,
"Knocking" the author in to Skype.
The subscription price - 600 rubles per month
for individuals.