Intraday trading = SubLevel trading
Want to control your risk and scalp small profits each day with the intention of building the bet size over time?
Here's how, with Intraday trading or what we call SubLevel Trading—applicable to shares, forex, indices and commodities trading—meaning you don’t hold positions overnight.
The SubLevels are part of the TradingLevels pricing architecture. Simple to understand and use, they’re a tool to help you keep control over your trades and analysis.
(If you want to hold overnight then see Short Term trading = MinorLevels Trading, or for longer term Trend Trading = MediumLevel Trading. THESE PAGES COMING SOON)
DONT' GIVE UP! There is a process you need to go through to understand and use these tools. First there is understanding the basic set of numbers within the structure, and then there is understanding how the price works with these numbers, that is in terms of patterns including support and resistance. Many people don’t get it straight away, but when you do, your trading will definitely improve. As this is partly an understanding of how the market moves from A to B, we break it down for you into chewable parts so you can actually use it to gain more control over what you see and trade.
TIP First up, have a look at the basic TradingLevels FastTrack Intro. Once you have a grip on the basic TradingLevels concept, then you can start to get the detail on SubLevels here.
The SubLevels are of course connected to the MinorLevels and the MinorLevels are connected to the MediumLevels and the MediumLevels are connected to the MajorLevels.
Shares – Intraday/SubLevels Trading Example CBA
The SubLevels deal with the smaller part of the TradingLevels pricing structure, so for shares it is between each one dollar e.g. $51.00 and $52.00 – basically you are scalping small profits and exiting at the end of the day. Sure the trade for the day can cross over each one dollar but we handle that along the way.
The SubLevels between each dollar are what we are interested in here, as you will see below in the CBA example
TradingLevels – SubLevels
51 Full Point (Minor TradingLevel mTL1)
51.80 stl8/ SubGroup2 (SG2)
51.72 stl72 / SubGroup2 (SG2)
51.65 stl65 / SubGroup2 (SG2)
51.50 stl5 / Sub Midpoint
51.30 stl3 / SubGroup1 (SG1)
51.20 stl2 / SubGroup1 (SG1)
51.10 stl1 / SubGroup1 (SG1)
52 Full Point (Minor TradingLevel mTL2)
NOTE LABELLING:
stl: sub trading level
SG1: SubGroup1
SG2: SubGroup2
So the SubLevels are simply 10, 20, 30, 50, 65, 72 and 80 which are divided into three sections, SubGroup1, the Midpoint and SubGroup2. We would use each sublevel as a support or resistance, we would also use each group as a support or resistance, essentially we are breaking down the risk into manageable sections, these are the levels we use to place stops and take profits, this will become more evident as you see the price work through these levels time and time again, you will weigh up the risk reward on what you know and see at the time
In a nutshell, if we were going long, the basic idea would be to scale into positions through 10, 20 and 30 as the MinorLevel 51.00 became support, then we would look to scale out into 65, 72 and 80. There is a lot more to this and this would be the bigger picture view point, breaking this down further, there are basically four trades up from 51 to 52 and four trades down, yes there are more and we can get to that later. When we are new to trading it’s easier to go long rather than short, it’s a little like driving on the left hand side of the road for the first time; we need to get our head around the concept, but using the levels you will be able to break the trade down into small workable controllable parts.
Next Step
You need to draw the sublevels on your chart, it doesn’t matter if you use a 1 Minute or 30 Minute chart at this stage. Of course the smaller the time frame the more you will see and understand when it comes to observing the price behaviour at the levels.
You will see the price working with the levels as support and resistance and you will straight away realise there is something to these levels, this is great, however the work is just starting, as understanding and knowledge unfortunately seems to drop in small drops, but once the pennies start to drop you will be on your way, remember this is about understanding the markets and how to trade, it’s not a get rich quick system, you’ll still have to work for it, but every effort made here is well worth it.
The markets are doing whatever they are going to do and there’s not a dam thing you can do about it, but what you can do it understand how they move from on price to the next, this is the point we are interested in.
Each price or number appears to have psychological element to it, but in reality this would come from the people trading it, it’s what there thinking that matters, with the levels which are numbers we have noticed certain aspects that are helpful, firstly the groups the subgroups, if subgroup1 can find support (support needs to be understood) then the price has psychologically separated from the MinorLevel and in this case $51.00, so support on 51.30 (top of subgroup1) will see the price at the next level, the Midpoint 51.50. So this is a trade, from 51.30 to 51.50.
There is a very high probability that there will be a corrective pattern across 51.50 that is why you can take profit at 51.50, the number 5 is the second strongest number, so we are talking about an above 90% probability of a corrective pattern at the Midpoint, know this enables you options, to take a percentage of the profits or all of the profits. What would influence your choices, firstly the base pattern the trend is working off, squaring the last correctional pattern with price, the volume expanding or diminishing or the time of day, as a trading intraday can be broken down into the basic three parts, up to 11.30 AM (volume starts to diminish) the lunch period then the afternoon period 2.30 PM each of these time section have more to them, I am just talking about the very basic general volume flow for the day, so if the price was around the 51.50 near or after 11.30 AM then you would exit fully. If after lunch the price had its corrective pattern across both sides of the Midpoint and then found support, then you would trade to subgroup2 (51.65, 51.72, 51.80) the 72 is the important price point here. The very general idea here is to take part profit at each level. The number 8 is a profit taking number, it will be in this subgroup2 that the selling will come in to take part profit, you need to do it too., latter on if you see that the 71, the 51.72 has found a solid support then you can trade to 52.00 MinorLevel mTL2 and exit.
The basic four trades are, from 51.00 to 51.30, from 51.30 to 51.50, from 51.50 to 51.72, from 51.72 to 52.00
And then the Next Step
Understanding support and resistance, once you understand this, then you will know where to place the stops.
Support and Resistance are basically the same; except they are opposite, the resistance is upside down.
One important mantra you need to repeat to yourself until you get it, is “the retest is more important than the breakout”
So what does this mean, what is the retest. The retest like many things can be seen in different ways, meaning it can be seen in the market depth or on the chart, in terms of price action and pattern, it can be viewed in the volume behaviour and the relationship of volume to price, you can also see it in indicators such as the oscillators, such as overbought oversold indicators, the point being the retest is either checking on (if going long) demand or no sellers, then more you can understand this little aspect the more your world will change.
EXAMPLES CHART & VIDEO (Coming soon)
Patterns at the Levels
There different ways to see and understand price patterns, such as Elliott Wave, traditional patterns and each market has its own nature, its own finger print, it has its own patterns, they can be micro or macro, a market normally has half a dozen of its own reoccurring patterns, understanding a particular markets patterns is just part of the basics of using charts, whichever way you can recognise a pattern if fine, the point being you must be able to somehow understand the pattern you are looking at and how the pattern is developing across a price level, you need to have confidence in the pattern you are looking at, you need to have confidence in the support you are trading off, I’m not saying understanding pattern is easy, as pattern recognition comes from hours of study and observation.
The basic point to get you started is that markets are trends and corrections of different degrees and each trend and correction has a beginning middle and end, you need to know where you are in the process.
The corrections will be at the levels, corrections are normally continuation patterns, so once they are complete the trend will resume, the trick is not to get flicked out of the trend, we can either take profits at the levels so we don’t get caught in the corrections or you need to accommodate the correction, in most cases its best to take the profit at the right level, wait for the correction (pullback) to complete then use the level to move back into the market.
A good starting point is to understand the TradingLevels Classic correctional pattern at a level in the online course section, as there are basically a handful of correctional pattern to learn, once you once understand the Classical pattern, which is also an Elliott wave pattern, just broken down into simpler terms that you can work with, it doesn’t matter if you are learning the Classical pattern on a daily chart or intraday as it’s the same principle.
Trading with the SubLevels
Once you have a grip on the patterns, retests and volume, we can start to set a standard set of targets, stops and other trade management tools to control the process
The trade price points
Between each full point, there are basically four trades long and four trades short, this can be reduced or expanded but this is the basic frame work
LONG
Trade 1: from full point to stl3 then exit
Example 51.00 to 51.30 (This is subgroup1)
INTITIAL STOP: 49.97
TRAILING STOP: Robo Method, sublevels, Market Depth
Indicators Indicators if used
Trade 2: from stl3 to stl5
Example 51.30 to 51.50 (stl5 Midpoint)
INTITIAL STOP: 51.27
TRAILING STOP: Robo Method sublevels, Market Depth
Indicators Indicators if used
Trade 3: from stl5 to stl65 stl72 stl80
Example 51.50 to 51.72 (subgroup2)
INTITIAL STOP: 51.47
TRAILING STOP: Robo Method sublevels, Market Depth
PARAMETERS Indicators if used
Trade 4: from stl72 to Full Point (52.00 mTL2)
Example 51.72 to 52.00 (mTL2)
INTITIAL STOP: 51.63
TRAILING STOP: Robo Method sublevels, Market Depth
Indicators Indicators if used
SHORT
Trade 1: from full point to stl8 then exit
Example 52.00 to 51.72 (51.80)
INTITIAL STOP: 52.03
TRAILING STOP: Robo Method sublevels, Market Depth
Indicators Indicators if used
Trade 2: from stl72 to stl5
Example 51.72 to 51.50 (stl5 Midpoint)
INTITIAL STOP: 51.73 or 76
TRAILING STOP: Robo Method sublevels, Market Depth
Indicators Indicators if used
Trade 3: from stl5 to stl3
Example 51.50 to 51.30 (subgroup1)
INTITIAL STOP: 51.53 or 57
TRAILING STOP: Robo Method sublevels, Market Depth
Indicators Indicators if used
Trade 4: from stl3 to Full Point
Example 51.30 to 51.00 (mTL1)
INTITIAL STOP: 51.33
TRAILING STOP: Robo Method sublevels, Market Depth
Indicators Indicators if used
Indicators Example: Bollinger bands 1 Standard Deviation above or below
Indices - Intraday/SubLevels Trading Example ASX200/SPI/Aussie200
So SubLevel trading would take place between each 100 points e.g. 5100 and 5200 it is the same SubLevel structure / ratio as the CBA example (above) but here there is a multiple of 10, because we are working within 100.
NOTE: this is only a trading guide, pointing out four trades in both directions – the basic model to work from – there can be more trades or less trades and this will become apparent as you develop an understanding of the levels and the momentum of price and its patterns.
The initial stops are very close. These stops are close because an understanding of the ‘retest’ is firmly understood, and the retest is part of the support and resistance price action and pattern formation. Essentially it’s a checking of the strength of the trend and you find this will occur at a level and in turn offers you a place to work the trade from.
TradingLevels – Sublevels
5100 (Minor TradingLevel mTL1)
5180 stl8/ SubGroup2
5172 stl72 / SubGroup2
5165 stl65 / SubGroup2
5150 stl5 / Sub Midpoint
5130 stl3 / SubGroup1
5120 stl2 / SubGroup1
5110 stl1 / SubGroup1
5200 (this is also a MediumLevel ML9)
NOTE: The trade price points are between each full point. There are basically four trades long and four trades short, this can be reduced or expanded but this is the basic frame work
LONG
Trade 1: from mTL1 to stl3 then exit
Example 5100 to 5130 (subgroup1)
INTITIAL STOP: 5097
TRAILING STOP: Robo Method
Indicators: Indicators if used
Trade 2: from stl3 to stl5
Example 5130 to 5150 (smtl5 Midpoint)
INTITIAL STOP: 5127
TRAILING STOP: Robo Method
Indicators: Indicators if used
Trade 3: from stl5 to stl65
Example 5150 to 5165 (subgroup2)
INTITIAL STOP: 5147
TRAILING STOP: Robo Method
Indicators: Indicators if used
Trade 4: from stl72 to mTL2
Example 5172 to 5200 (mTL2)
INTITIAL STOP: 5167
TRAILING STOP: Robo Method
Indicators: Indicators if used
SHORT
Trade 1: from mTL2 to stl8
Example 5200 to 5180 (subgroup2)
INTITIAL STOP: 5203
TRAILING STOP: Robo Method
Indicators: Indicators if used
Trade 2: from stl72 to stl5
Example .5172 to 5150 (stl5 Midpoint)
INTITIAL STOP: 5173
TRAILING STOP: Robo Method
Indicators: Indicators if used
Trade 3: from stl5 to stl3
Example .5150 to 5130 (subgroup2)
INTITIAL STOP: 5153
TRAILING STOP: Robo Method
Indicators: Indicators if used
Trade 4: from stl3 to mTL1
Example 5130 to 5100 (mTL1)
INTITIAL STOP: 5133
TRAILING STOP: Robo Method
Indicators: Indicators if used
Forex - Intraday/SubLevels Trading Example
E.g. Australian dollar, so SubLevel trading would take place between e.g. .90 and .91 cents (each one cent)
AUDUSD
TradingLevels – Sublevels
.91 Full Point (Minor TradingLevel mTL1)
.9080 stl8/ SubGroup2
.9072 stl72 / SubGroup2
.9065 stl65 / SubGroup2
.9050 stl5 / Sub Midpoint
.9030 stl3 / SubGroup1
.9020 stl2 / SubGroup1
.9010 stl1 / SubGroup1
.90 Full Point (this is also a MediumLevel ML9)
The trade price points: Between each full point, there are basically four trades long and four trades short, this can be reduced or expanded but this is the basic frame work
LONG
Trade 1: from full point to stl3 then exit
Example .90 to .9030 (subgroup1)
INTITIAL STOP: 8997
TRAILING STOP: Robo Method
Indicators Indicators if used
Trade 2: from stl3 to stl5
Example .9030 to .9050 (smtl5 Midpoint)
INTITIAL STOP: 9027
TRAILING STOP: Robo Method
Indicators: Indicators if used
Trade 3: from stl5 to stl65
Example .9050 to .9065 (subgroup2)
INTITIAL STOP: 9047
TRAILING STOP: Robo Method
Indicators: Indicators if used
Trade 4: from stl72 to Full Point
Example .9072 to .91 (mTL1)
INTITIAL STOP: 9067
TRAILING STOP: Robo Method
Indicators: Indicators if used
SHORT
Trade 1: from full point to stl8 then exit
Example .91 to .9080 (subgroup2)
INTITIAL STOP: 9103
TRAILING STOP: Robo Method
Indicators Indicators if used
Trade 2: from stl72 to stl5
Example .9072 to .9050 (stl5 Midpoint)
INTITIAL STOP: 9073
TRAILING STOP: Robo Method
Indicators Indicators if used
Trade 3: from stl5 to stl3
Example .9050 to .9030 (subgroup2)
INTITIAL STOP: 9053
TRAILING STOP: Robo Method
Indicators: Indicators if used
Trade 4: from stl3 to Full Point
Example .9030 to .90 (ML9)
INTITIAL STOP: 9033
TRAILING STOP: Robo Method
Indicators: Indicators if used
BACK TO TOP»
|
|
|
|
|
|
|
|
|
|
|
|