What are key levels? How can we trade from them? Support and resistance levels can be classed as key levels but there are other forms. What is important and why – it is important to understand where the market closed yesterday, yesterday’s high and low are also important levels. And then today – what is the current high and low of the day – those levels come into play as an intraday trader.
Summary
Key Levels in Trading: Includes support, resistance, prior day’s high/low, and opening price levels. These are crucial for interpreting market behavior.
Significance of Gaps: Gaps between the prior close and the next open signal market strength or weakness.
Practical Application: Marking key levels on charts helps traders identify breakout points and assess market strength.
