Real levels: pivot highs & lows
This is the main method of locating the levels that is used everywhere, it's robust & general. Instead of using the actual volumes we infer volumes from prices, the prices that include all the information about everything, prices that consider all the correlated volume.
I think many may know how to find these levels, these are simply pivot highs & lows (aka PHLs).
But aside of understanding the positioning and clearing, the trick is to choose the right resolution.
Btw, an obvious thing I haven't mentioned before: the levels are located, positioned and cleared on the same resolution. Only this way.
So, about choosing the correct resolution, basically you need the lowest resolution possible where a level origin (a PHL) can be found:
1) Choose a unique color for every resolution, start with the lowest resolution possible, like 1Y chart, mark all the positioned levels there, optionally mark the back levels as well, and maybe non-positioned level as well with a dash line. Now repeat the process on every resolution until you hit your target resolution. So if you decide to stop at 1D chart, you'll need to consider 1Y, 1Q, 1M, 1W and ofc 1D resolutions;
2) Don't forget to periodically check and delete the cleared levels.
To be efficient you need to develop a habit of scrolling through all the resolutions you use when you have a question about what's happening.
Clearing by volume with PHLs happens this way:
1) We consider volume to be uniformly distributed along the bar, so at every price inside each bar there's N volume;
2) Consequently, we can simply count the number of bars during positioning, and add 1 to it (PHL is always one bar by definition);
3) Then we count the number of bars during testing, when this number becomes equal to the number of bars during positioning plus one, the level is considered cleared.
On the chart you see I got (almost xd) all the positioned levels from 1M in red, yellow from 1W and gray from 1D.
Live Long and Prosper
I think many may know how to find these levels, these are simply pivot highs & lows (aka PHLs).
But aside of understanding the positioning and clearing, the trick is to choose the right resolution.
Btw, an obvious thing I haven't mentioned before: the levels are located, positioned and cleared on the same resolution. Only this way.
So, about choosing the correct resolution, basically you need the lowest resolution possible where a level origin (a PHL) can be found:
1) Choose a unique color for every resolution, start with the lowest resolution possible, like 1Y chart, mark all the positioned levels there, optionally mark the back levels as well, and maybe non-positioned level as well with a dash line. Now repeat the process on every resolution until you hit your target resolution. So if you decide to stop at 1D chart, you'll need to consider 1Y, 1Q, 1M, 1W and ofc 1D resolutions;
2) Don't forget to periodically check and delete the cleared levels.
To be efficient you need to develop a habit of scrolling through all the resolutions you use when you have a question about what's happening.
Clearing by volume with PHLs happens this way:
1) We consider volume to be uniformly distributed along the bar, so at every price inside each bar there's N volume;
2) Consequently, we can simply count the number of bars during positioning, and add 1 to it (PHL is always one bar by definition);
3) Then we count the number of bars during testing, when this number becomes equal to the number of bars during positioning plus one, the level is considered cleared.
On the chart you see I got (almost xd) all the positioned levels from 1M in red, yellow from 1W and gray from 1D.
Live Long and Prosper
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כתב ויתור
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