Zerd wrote:Hello,
I have a very basic question. Previously I've read it but these documents were lost when this site reset. I think this question will help some new members learn more about the level. Can you explain the volume above or below levels. And how Quarter Level work ?
It true ?
-1. Activity below half levels in preparation for long and above for short.
-2. In an uptrend, price action stopped below half level is preparing for breakout half level and continue the uptrend?
-3. In an downtrend, price action stops above half level to prepare for the breakout half level and continue to fall?
-4. (2.) and (3.) Similar for Whole level?
-5. Is there any concept when price action above or below the Quarter Level ?
Any further revealed about level?
Thank PVSRA Team
You will find this and more in the
Orientation Room.......
Price - We cannot know how the MMs (Market Makers) will move price next, period.
But price tends to consolidate above key SR when MMs are filling short orders for SM (Smart Money) and long orders for DM (Dumb Money), and price tends to consolidate below key SR when MMs are filling long orders for SM and short orders for DM. The MMs are also "SM", and they tend to do the other SMs "one better"! This means that after the MMs fill the SM/DM orders, they might move price a bit further in an attempt to stop out some of those SM executed orders and sucker in more DM; both giving liquidity for the MMs to build their own SM side position using money they steal from others. Yes, the MMs are bastards. But the point is that could leave price not "nicely" above or below a SR anymore, yet more consolidation can occur.
.......Okay, now understand that there are two points being made here.
One, consolidation below key levels tends to be a bullish clue, unless it is at the end of a bear swing, in which case it might only indicate the closing of shorts to be followed by some ranging and then more consolidation below key levels if SM begins to build long, or maybe a retrace higher and new consolidation above key levels while SM rebuilds short. The reverse would be consolidation above key levels tends to be a bearish clue, unless it is at the end of a bull swing, in which case it might only indicate the closing of longs to be followed by some ranging and then more consolidation above key levels if SM begins to build short, or maybe a retrace lower and new consolidation below key levels while SM rebuilds long.
So, more simply stated, price tends to consolidate above key levels when SM is selling (to close longs or to open shorts) and price tends to consolidate below key levels when SM is buying (to close shorts or to open longs).
Two, we cannot know how the MMs will move price next. Think about it. On a very large TF chart we might anticipate that eventually price will move from level A up to level B. And it might. But if it does, there usually will be bull and bear swings along the way......good long and good short trade opportunities.....as SM takes profit and looks to reload again at a lower price for more upside later, and as the MMs manipulate price accordingly to fill SM orders. And so, this picture can be translated to lower TF charts, too. The same thing, but in smaller swings.
The market is all about liquidity, the MMs moving price up and down and in unexpected ways in order to suck money into the market to fill SM orders so the MMs can make commissions, and to steal some of it outright by hitting pending stop orders on what will become "right side trades" that were entered too soon by market participants.
And so, we not only need to grasp the concept of
PVSRA, but also the concept of
MOMENTUM which is revealed by our use of the Solid Trend angle to help assure that we are both trading in the right direction based on supporting
PVSRA, and that we have entered only when there is evidence of price movement
MOMENTUM in that direction.
- Tah