Levels- What are they?
Levels are significant because it’s an area of high interest. It’s where buyers and sellers battle it out; to break the level in their desired direction. Its an area of Support and we know once support is broken, support then becomes resistance. And once resistance is over come, it now becomes Support. Simple logic.
The larger the time frame the more significant the level. If you can spot a level on a monthly chart or weekly, that level holds true, because it’s been there over a long period of time. Tested in many intervals however over time levels remain relevant.
Have you ever wondered when stocks report earnings- or significant news hit the wire and the stocks gaps, where do they gap it to?? That’s right–they gap it to a particular Level.
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