Key Levels and Trading in the Direction of the market on a 1-minute Chart

Critical Elements to this strategy

 Market will make its way back to Key Levels

 Only take trades in the direction of the trend – Momentum is Key

It is vital that I understand the proper definition of the following

Major Key Level

 This is the High/Low that began the entire move. The market moved into the current
trend from this point. Identifying this is critical so that I am trading ONLY in the
direction of the trend.

Major Levels

 Major lows in an uptrend. This level has not been broken during the course of the
uptrend
 Major highs in a downtrend. This level has not been broken during the course of the
downtrend

Structure

 The HH& HL /HL&LL that create market structure in a trending market.

 Critical to identify to read price action and as levels to plot trade entries.

Questions that need to be solved to ensure that the above key Elements are in tact

1. Where do we plot our Major Key Level?

2. How can we confirm that Market is up and we are only buying /down and we are only selling?
3. What indicates a change in Bias? SO that we are not buying when we should be selling/ vice
versa

What we know from Masterclass 4.0 LH &HL Rules -Video

 Triple Tops You Can Sell at Anytime – Indicating that this would be the start of a changeover
from a Buy to a Sell
 Triple Tops You Can Buy at Anytime – Indicating that this would be the start of a changeover
from a Sell Bias to a Buy Bias
 D.T. – you can sell in an uptrend ONLY at Major Levels
 D.B. you can Buy in an uptrend ONLY at Major Levels
 Perfect Break and Re-test you can BUY in an UPTREND at Major Levels
 Perfect Break and Re-test you can SELL in and UPTREND at major Levels
Following this logic:

Answer to Question 2

A triple Top is an indication that market is no longer making HH & HL – indicating a shift in Market
Structure. This is the start of a downtrend and we have in fact switched from BUY Bias to SELL Bias

A triple Bottom is an indication that market is no longer making LH & LL – indicating a shift in Market
Structure indicating a shift in Market Structure. This is the start of a uptrend and we have in fact
switched from SELL Bias to BUY Bias

Until this process has occurred the Current Bias is in tact.

1. Where do we plot our Major Key Level?

Again, following the logic, it is when the Bias flip – At the Point after the triple top or bottom. The
market has confirmed (at least at the point of the end of the triple top/bottom formation) that it is no
longer making HH&HL or vice versa.

This would be an indication that this is where our Major Key level exists. Of Course, when we are looking
for Buy or Sell Trades along the way we want to identify Key levels as that is where we are focusing a
number of our trades.

Trades at Major Levels

 Deep Pullback to a major level – Confirmed with a DT or DB Continuation

Trades at Break of Structure

 Prefect Break and Retest

 Consolidation Continuation