How to Find Levels with DMC — Transcript

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1. 0:00I just locked in 5R on the market open
2. 0:02today. I do everything on live stream
3. 0:03and everything's absolutely for free for
4. 0:05you if you want to watch me do
5. 0:07everything I'm about to teach you right
6. 0:08now live in front of you. So, let's talk
7. 0:10about levels. If you want to know which
8. 0:13levels are the ones you supposed to be
9. 0:15using and which levels are the ones
10. 0:17you're supposed to be ignoring, how do
11. 0:19we know a level is ready to go and how
12. 0:21do we know a level's used up already?
13. 0:23That's what I'm going to answer here. Uh
14. 0:24which time frames and whatnot, how do I
15. 0:26do it using DMC? We're going to make
16. 0:28this quick. So markets go up, right? And
17. 0:30you have a level right here. Okay? And
18. 0:34you've come back down and you've tested
19. 0:35it once. Okay? The next time it comes
20. 0:38back down, that level has already been
21. 0:41tested. So we don't want to use it
22. 0:42anymore. So every single range or candle
23. 0:46body level that we have on either side
24. 0:49here, once it's tested, we take it once.
25. 0:51The second time we won't take it because
26. 0:53it's less likely to be held as support.
27. 0:56The other side of this range can also be
28. 0:59used as a level for the first time as
29. 1:01price comes back down. So, it's probably
30. 1:03going to come back down, pass through
31. 1:04this time, bounce up now. Okay, now that
32. 1:07we've passed through, we now have price
33. 1:11here and we define these as pass through
34. 1:13levels using DMC methods. Okay, so this
35. 1:16level once again can be used and this is
36. 1:20why you see these head and shoulder
37. 1:22patterns is because these levels do
38. 1:24support to resistance flips. And then
39. 1:27the next thing you'll notice is now you
40. 1:29have a level here that got never got
41. 1:31tested from before. So this level is
42. 1:34going to be a target for your downward
43. 1:37move. If we were playing a chart like
44. 1:39this and we said, "Hey, it happened to
45. 1:41print something like this. this level
46. 1:43got tested and they lost the level and
47. 1:45they they changed the trend. So now it's
48. 1:47going to the downside. Okay. So our bias
49. 1:49is now to the downside using just this
50. 1:52time frame. What you can then do is you
51. 1:54can say, "Hey, once we've passed here,
52. 1:57you could buy off of that. You could
53. 1:59sell off of this, right? And then if you
54. 2:01got into a sell here, your target would
55. 2:04be the first untested level in the
56. 2:06reverse direction." And the whole logic
57. 2:08of what we're doing here is we're
58. 2:09trading level to level. You're not
59. 2:11trying to shoot past these levels.
60. 2:12You're not trying to shoot for 3 hour, 4
61. 2:14hour, things like this. Those style of
62. 2:16trades are more or less gambling. And
63. 2:18you can only basically get those when
64. 2:20multiple time frames are lining up. And
65. 2:22that's what we're going to show you on
66. 2:23the chart right now. As always, I am the
67. 2:25founder of Maven. It's the only firm
68. 2:26that's able to stand the test of time
69. 2:28with zero payout denials for the past 4
70. 2:30years. It's one of the most popular
71. 2:32firms in the world and we have the
72. 2:34cheapest prices available. Uh traders
73. 2:36absolutely love Maven here. So check out
74. 2:37maventrading.com. You can use code DMC
75. 2:40to get 10% off any account you want
76. 2:42here. Look at those prices. $9 for the
77. 2:44cheapest. It's insane. When we're
78. 2:45looking at levels, what I like to use is
79. 2:47candle bodies. Simple as that. When you
80. 2:49gain a level, you come back and you
81. 2:50retest it. For an example here, we're
82. 2:52just going to look at today. My trade
83. 2:54today ran up really well. I told you I
84. 2:55made like a 5 hour trade here. I entered
85. 2:57here and I targeted there. And I'll show
86. 2:58you why. So, when we gained this
87. 3:01previous level right there, just there.
88. 3:03We just simply retested and then we went
89. 3:05to the next level up. And that's all we
90. 3:06were looking for. But when you're
91. 3:08combining multiple time frames, you can
92. 3:10get an idea of what's happening overall.
93. 3:12So this is only on the 15minute. When
94. 3:13you're looking at the 4 hour, you can
95. 3:15say, hey, the trend had changed right
96. 3:17here, we can see that it closed beyond
97. 3:19there. And what they did is they came
98. 3:20back and tested that level. Okay. So if
99. 3:22they come back down to this again, this
100. 3:24level no longer valid anymore because
101. 3:26it's been tested. Okay, but they held
102. 3:28support. And what's the next level up on
103. 3:29the 4hour? Well, you would have thought,
104. 3:31hey, maybe this passed through level,
105. 3:33but it's already been tested, so no. So
106. 3:34we knew that that was going to break
107. 3:36through. So the next level up
108. 3:37realistically is the start of this move
109. 3:39down. And all levels can be important,
110. 3:43right? So you might say, hey, why not
111. 3:44this pass through? Why not this pass
112. 3:46through? You know, why why did I target
113. 3:47this one? And honestly, it doesn't
114. 3:49really matter too much. It's all more or
115. 3:50less the same spot. But how are you
116. 3:53going to choose which levels to use and
117. 3:55which levels not to use? For me, it's a
118. 3:57priority based system. And here's how
119. 3:59the priority works. You start on the
120. 4:01high time frames and you draw your
121. 4:03untested levels there. Where did I have
122. 4:05my untested levels? I had on the higher
123. 4:06time frame 24-hour I have here the move
124. 4:08down and I have here. These are two
125. 4:10possible starts for the higher time
126. 4:12frame. Now when I go down to the 4 hour,
127. 4:13we can see where do those things line
128. 4:15up? Well, that actually lined up right
129. 4:16there. So that's the level I ended up
130. 4:18choosing today. They're all roughly in
131. 4:20the same area. So if it's all roughly in
132. 4:22the same area, I'm probably going to go
133. 4:24with the highest time frame version of
134. 4:27that. So higher time frames take
135. 4:28precedent. The closer the level is to
136. 4:31the price, the higher priority it is,
137. 4:33right? So here is a pass through level.
138. 4:35It's a high priority, but it's been
139. 4:36tested. So now it lowers its priority,
140. 4:38and I don't care about it anymore. So
141. 4:39you have to figure these things out as
142. 4:42price plays out. And then the last
143. 4:44priority is how many times it passes
144. 4:45through price. Okay? Let's say we have
145. 4:47this level right here. It's passed
146. 4:49through 1 2 3 and then that's the
147. 4:51current trend. So it takes three times
148. 4:52to get to the current trend. So I'm not
149. 4:54interested in a in a level that's there.
150. 4:56I'm interested in levels that are either
151. 4:58just only touching the current trend or
152. 5:00passing through one time. That's
153. 5:01generally what I go based off of. But
154. 5:03the the closer higher time frame and
155. 5:06fewest pass through levels are the most
156. 5:08important levels. So for an example,
157. 5:10this level would have been super
158. 5:12important as we converted because it's
159. 5:14only testing the current trend when it
160. 5:16passes through. It's super close to
161. 5:17price and it's a relatively high time
162. 5:19frame on the 4 hour. So we knew that
163. 5:21this level was going to hold. Putting
164. 5:23all of that knowledge into practice,
165. 5:24what I can say is, hey, I marked out
166. 5:26these high time frame, the daily level
167. 5:28that I probably want to retrace to.
168. 5:30After the 4hour changed direction, and
169. 5:33we were probably buying off that zone, I
170. 5:35then went to the market open, which told
171. 5:37me what that price was moving up on the
172. 5:40market open. We gained a level and we're
173. 5:43probably going to be shooting for the
174. 5:44next level up. Everything here was
175. 5:46tested and that's why it shot up.
176. 5:48Everything here was useless and the
177. 5:49higher time frame thing that was what
178. 5:51mattered. And now you can see, hey, this
179. 5:52dotted line is exactly where price went
180. 5:54to before there was some consolidation.
181. 5:56And after that, I don't care how far it
182. 5:58goes because this to me, this last leg
183. 6:00is gambling because I don't know if it's
184. 6:02going to continue. It's getting near
185. 6:03late the day and I don't know what's
186. 6:05going to happen anymore. So, I'm just
187. 6:06going to wait it out until tomorrow.
188. 6:07Guys, that's the whole video. If you
189. 6:08want to watch the live streams, you can
190. 6:10watch me do this absolutely live for
191. 6:12free. I teach everything for free. And
192. 6:14if you want to test your abilities, you
193. 6:15can check out mavenraden.com.