Dumb Money Concepts - Identifying Levels — Transcript

Full transcript

1. 0:00okay let's show you how to identify
2. 0:02levels when using dumb money Concepts
3. 0:03it's super easy first of all is only the
4. 0:06candle bodies that you're going to care
5. 0:07about the opens and the closes and then
6. 0:09we also have pass through levels and
7. 0:10then we also have jumping skipping
8. 0:12levels I suppose I'm going to show you
9. 0:14exactly how you identify which level
10. 0:16it's going to take here's a hint you
11. 0:17don't know for sure so we're going to be
12. 0:19using multiple we're just looking at the
13. 0:20NASDAQ here and we're not cherry-picking
14. 0:22anything we're just going to show you
15. 0:23exactly what's happening so every time
16. 0:25something gains a level it's just going
17. 0:27to retest the most significant level
18. 0:29behind mind you can also draw the level
19. 0:32on the opposite side of the candle these
20. 0:34both exist they're both possibilities in
21. 0:37which it could retest so you could on a
22. 0:39smaller time frame place an order on
23. 0:41both for example okay if you are jumping
24. 0:44levels or skipping level so you have
25. 0:46this little level here that is a
26. 0:48possibility of a level it's still
27. 0:49untested that's a bad example because
28. 0:51it's such thin but the level that's lost
29. 0:53is this one but you can see that anytime
30. 0:56you jump you're going to skip all these
31. 0:58levels right so you jump jump this
32. 1:00you're not going to come back and retest
33. 1:02those cuz it's very far so you jump this
34. 1:04level and you've got the most
35. 1:06significant gain right there and you've
36. 1:09got kind of a least one here so this is
37. 1:11your zone of levels that you're going to
38. 1:14be looking for entries in right the
39. 1:16level that they actually ended up taking
40. 1:18is on the bottom side here you can see
41. 1:22any of these levels are possibilities
42. 1:24and you can kind of line them up in
43. 1:26hindsight because you never know which
44. 1:28level they're going to exact ly take and
45. 1:30that's the whole point of this where you
46. 1:32are going to be able to draw levels and
47. 1:33get an area of what you're actually
48. 1:35looking for so this is your whole area
49. 1:37that you'd be looking for you would
50. 1:38definitely not want to be in this Zone
51. 1:40okay now the next thing to note is
52. 1:43there's something called pass through
53. 1:45levels but there is also a possibility
54. 1:47is if these candles are really wide
55. 1:51right they're really really large you
56. 1:53can pass through levels from left side
57. 1:56data okay look for an example here
58. 1:58really quick this this is a very large
59. 2:00candle here right so it's pretty hard
60. 2:03for price to come all the way back to
61. 2:05that top so what they're going to do is
62. 2:06they're going to use levels that are
63. 2:08passed through from old data so you can
64. 2:10see how perfectly that one lines up so
65. 2:12you're going to be able to draw all of
66. 2:13these significant levels and again you
67. 2:16never know exactly which ones are which
68. 2:18you never know exactly which ones are
69. 2:19going to hold true you can see here the
70. 2:23level that was actually used is a pass
71. 2:25through level on this gain because we
72. 2:27didn't want to come all the way back
73. 2:29down pass through level and as the level
74. 2:32passes through more and more candles
75. 2:35it's weaker and weaker the older the
76. 2:36dated the weaker and weaker it gets
77. 2:38right so it gets less and less
78. 2:40significant over time here is another
79. 2:42example this is a pass through level
80. 2:44right the level that they didn't use
81. 2:46they did not use this one because it was
82. 2:48too far they decided to take a earlier
83. 2:50level which was less significant but it
84. 2:52was closer than that actual level here
85. 2:54so they actually use that one instead so
86. 2:56these you're going to be able to find
87. 2:57all the time and then the other note is
88. 3:00skipping levels right again go back to
89. 3:02skipping levels if you have a massive
90. 3:03candle like this or an F as ICT Traders
91. 3:06like to call it you can see that you've
92. 3:08actually got two both examples here
93. 3:10you've got a pass through level that's
94. 3:12being used there because this is a very
95. 3:15large candle skipped all these levels
96. 3:18skipped this one and then ended up using
97. 3:19a pass through level so that's all three
98. 3:22concepts of levels put into one going
99. 3:24back to the very beginning of the video
100. 3:26the significant thing that you need to
101. 3:28know is every time that we get gain a
102. 3:30level we're going to come back and test
103. 3:32the level that is gained before
104. 3:33continuing to the upside and it's a
105. 3:35progression that's how you draw levels
106. 3:37every single time right back here you
107. 3:40can see that's a level that we gained we
108. 3:42retest it and then we continue up and we
109. 3:44gain it again we retest it and then
110. 3:46continue up but this time we failed on
111. 3:49the retest okay that's all levels are
112. 3:51guys you can skip levels if price is
113. 3:53really volatile right or you can use
114. 3:56pass through levels that pass through
115. 3:58old data if that volatility is too large
116. 4:03that we don't want to come all the way
117. 4:04back down because the momentum is
118. 4:06keeping us in action okay if we don't
119. 4:08have that and it is slowly progressing
120. 4:11then it will do exactly what you think
121. 4:13and it will just slowly retest as needed
122. 4:15that's all