Difference between Our Dynamic Price levels Vs. Traditional Static Support / Resistance.
Static support and resistance levels are based on past information. e.g. high or low of a given candle based on the timeframe of your choice. These levels have already been established are easily visible in the chart. Most traders can draw a line by looking at the chart.
On the other hand, Dynamic price levels are based on developing real-time market conditions and are not easily visible or identifiable in the chart. These dynamic levels are based on real-time information and subsequently become helpful in the future. Furthermore, these dynamic levels eventually convert into static support and resistance after they have been established as high or low of the given candle.
For example, 2511.75, 2533 price levels in ES Emini future were extracted in real-time during intraday on 3/12/2020 when they were not being established (invisible information in the chart) as high or low (visible information in the chart). Those levels were given to you as an intraday level and then they were given to you as a premarket level (Future use) on 3/13/2020 and starting 3/14/2020, They become static support/resistance after they had been established as high or low of the given candle or it had provided some response from those levels and hence now that information is visible to every day trader in the chart. The trading edge comes when you are in a position to extract price levels earlier than other traders.
4 Types of Levels (most of the traders know them as Support and Resistance) are being used in the premarket notes.
My premarket price levels are being called as buyer’s interested levels and seller’s interest levels and I do not call them as support or resistance. By labeling them as support and resistance, your mind will construe them as a floor and ceiling and it will lock your mind into a fixed way of trading from these S/R. The market is dynamic and players can change their minds many times during the day at any given price level. Sometimes they are the buyers from a given level or sometimes they are the sellers. And based on that idea and depending on where most of the players are interested in trading, I determine my price levels and put them under the buyer’s interested level and the seller’s interested level bucket. Hence, my levels are dynamic and driven by real-time supply and demand based on the present conditions.
- Dream Number ( Proprietory numbers -Floating S/R depending on where the price is)
- Exchange Area (Floating S/R depending on where the price is)
- Support (Static/Dynamic Support)
- Resistance (Static/Dynamic Resistance)
- Naked Dream Number (Untested RTH dream number from the past)
- Exchange+Naked dream number (Naked dream number and an exchange area together)
- Running Dream Number(RD) beta testing- it is an intraday number( one price level) to gauge buyers or sellers. Above buyers , below sellers. Only available in discord #signaltesting_noncontextual channel.
- Long Term RD: it is new higher timeframe number(3 price levels daily, weekly and monthly) just being released on 6/15/2020 in beta testing mode. Available in premaket notes only.
Severity of Levels
A level could be bold, underline, dotted, regular/normal or line in the sand. However, please keep in mind that all the levels are important in general. If they are not important, then I will not keep them under the premarket Buyer’s or/and seller’s interested levels. So by default, assume that any levels from the premarket notes can provide a response depending on how a given day is unfolding. How the day unfolds is a function of other markets at that time, the position of internals, and the time of the day.
| Bold Level | Strong Levels |
| Underlined Level | Good Levels |
| Normal level | Ok Levels |
| Dotted Level | Ok levels but chances are higher to work during exhaustion or you need to see something extra to take trade from this level |
| Line in Sand level | This is the level that a given side has to maintain for the day. It does not mean that you blindly trade this level. |
- NQ Dream Numbers(Proprietory numbers – DOTTED LINES): This level is used in conjunction with other levels. They are neither support or resistance but they are important levels for each side. Depending on the day, it can work as support or resistance. Even if the price goes through it, it will continue to work as support or resistance depending on where the price is at that time.
- RD (NOT AVAILABLE): Running Dream number (Beta Testing). During the day, i will type something like this. E.g This is how I would have typed on 6/6/20. RD3166 at 9.30 am, then during the day, RD3167 at 10 am, RD3170 at 10.30 am, RD3185 at 11.02 am, RD3196 at 11.34 am, RD3197 at 13.32PM till closing. If the price is above that number = buyers, below = sellers. It does not mean that you can not short above this number or go long from below this number. it is an intraday gauge and if it lines up with ur thought process and gauge is pointing in the same direction then it is an additional confirmation.
- Ovn or Globex or 24hr Session: Price action in the overnight hours of 6pm previous day to 9.30am current day.]
- RTH: Day’s session trading hours from 9.30am to 4.15pm EST.
- LOD: RTH low of the day
- HOD: RTH high of the day
- Fighting area: The fighting area is my visual observation from day’s price action where both sides are interested. It is often the case that the next day or day after, the price may visit this area and provide a response and later this fighting area may convert into an exchange area.
- Exchange Area: Mature fighting area will become an exchange area. It acts as a magnet for the price to come back to when it is balancing and there is a good chance that eventually the price will launch a nice upside or downside move from these exchange areas. It can act as support or resistance depending on where the price is. Exchange areas are powerful areas. I extract them in a real-time way early and put them in the future exchange area bucket and then later if I see enough activity during the following days, I may convert them into the confirmed exchange area. Later on, after 1 to 2 days, you will see more often than not the exchange area being converted into POC (Point of control) or HVN (High-value node) and it will be picked up by the majority of technical tools e.g. MarketProfile or volume profile, etc because these tools are dependent on volume accumulation of a certain amount at certain areas for the calculation purposes. (they are based on the past information). So they have to wait for that information vs. our exchange areas are being extracted in real-time from the invisible information in the chart by observation and experience way early. That way it can give us a trading edge to trade those levels way in advance before that information becomes available to the general public after a day or two or more via various technical tools.
- Whiskey Level: Forecasted/Future Levels
- Blank Space Areas: these are the areas in which price never traded in RTH after 4pm to overnight after 6 pm open. (Basically, it is a void space between RTH close to next day globex Open in case of a gap up or gap down situation).
- Do or Die: When I use the word “Do or Die” = price or given index is ready to make a move for either side and it has spent enough time in certain areas and now it is ready for some directional shift. The shift could be smaller or bigger.
- BO: Break out. Break out means price is breaking out of a certain price range. Break out or BO is used for supporting bulls or buyers.
- BD: Break down. Break down means the price is breaking down out of a certain price range. Break down or BD is used for supporting bears or sellers.
- Failed BO: Failed BO means that the price tried to break out of a certain price range but was unable to hold it above that price range and it came back down back into the price range. It often provides the required momentum to drive the price to the opposite side of the break out in the right context.
- Failed BD: Failed BD means that the price tried to break down of a certain price range but it was unable to hold it below that price range and it came back up into the price range. It often provides the required momentum to drive the price to the opposite side of the break down in the right context.
- Bullish Disconnect: When price opens below or at the previous close with advance-decline ($ADD or AD) > 0. Usually, it shows strength in buyers.
- Bearish Disconnect: When price opens above or at the previous close with advance-decline ($ADD or AD) < 0. Usually, it shows strength in sellers.
- AD divergence: When the price is moving one way and AD is moving another way or not following the price.
- Positive or bullish AD Divergence: When the price is moving lower or making new low but AD is making new high or not making a new low with the price.
- Negative or bearish AD Divergence: When the price is moving higher or making new high nut AD is making new low or not making a high with the price.
- Inflection point: When indices are near or at some long term support or resistance, I will use the term inflection point. Basically those points are very critical for future direction.
- Non-Tradable Areas: Areas left behind because there is no RTH price activity (however ovn traded there) due to a gap up or gap down situation. These areas contain non traded price levels. Essentially, overnight did not consider them as an important level and the price went through them and open above or below it in the RTH and did not visit that area again in the near term. Levels contained within non-tradable bucket are not that important anymore but still, they will remain there for in case.
Acronym frequently used.
| gHigh | Globex High/ Ovn High |
| gLow | Globex Low/ Ovn Low |
| yVPOC | Yesterday’s volume point of control |
| vAH | Yesterday’s Value Area High (Market profile concept) |
| vAL | Yesterday’s Value Area Low (Market profile concept) |
| POC | Yesterday’s Point of Control (Market profile concept) |
| yHigh | Yesterday’s High |
| yLow | Yesterday’s Low |
| VolumeStats | Overnight volume is above average or below average or average |
| yTotal Vol | Yesterday’s Total volume traded (Daily). IF > sign is used then it is higher than the day before. IF < sign is used then it is lower than then the day before. |
| Y | |
| yClose | Yesterday’s Close |
| POC_24hr | Point of Control for the last 24 hours(Market profile concept) |
| vAH_24hr | Value Area High for the last 24 hours (Market profile concept) |
| vAL_24hr | Value Area Low for the last 24 hours (Market profile concept) |
