Key levels

Which levels actually work intraday, how to mark them before the open, and why a stop always sits beyond a level.

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Day tradingLesson 11 of 344 min

Key levels

A level is a price where something happened before, so people remember it and act around it. The best intraday levels are the simplest ones — which is why everyone sees them, and precisely why they work.

The levels you mark before the open

The pre-market high and low. Yesterday's close. Yesterday's high and low. The 52-week high or low if they're near. Big round numbers. That's five to seven levels at most — if you marked fifteen, you marked nothing.

A level is a zone, not an exact price. If the high was 47.62, the zone is roughly 47.55 to 47.70. Expecting cent-precision means being shaken out by every small wiggle.

Role reversal

The most useful phenomenon in levels: a broken level swaps roles. Resistance that breaks upward becomes support on the way back, and support that breaks downward becomes resistance. This produces one of the cleanest entries there is — a break, a retest from above, and continuation.

Where the stop sits

Beyond the level, not on it. If you bought a break over 47.70, the stop doesn't sit at 47.68 — noise will take it. It sits below the whole zone, say 47.40, sometimes below the low of the candle that made the break. That widens per-share risk and therefore shrinks the share count — which is exactly right.

A break that happens without high relative volume is the most likely to fail. The level gives by a few cents, everyone piles in, price falls back inside and every breakout buyer is trapped. Volume is the difference between a real break and a trap.

Terms from this lesson

תמיכהSupport: A price area where buyers previously appeared and halted a decline.
התנגדותResistance: A price area where sellers previously appeared and capped a rise.
פריצהBreakout: A move above resistance. Reliable only when it arrives on unusual volume.
בדיקה חוזרתRetest: A return to the broken level from its other side — usually the cleanest entry.
פריצת שוואFalse Breakout: A break that fails and pulls price back into the range, trapping the buyers.

Practical checklist

I marked five to seven levels before the open, no more
Each level is marked as a zone, not a single price
The stop sits beyond the level zone
The break arrives with unusual volume

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