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Determining the levels BITCOIN PRICE REPORT ISSUE 2
Determining the levels BITCOIN PRICE REPORT ISSUE 2
I S S U E 2 • A U G U S T 2 0 2 1
W R I T T E N B Y
EMPERORBTC
https://twitter.com/EmperorBTC
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DEAR FAMILY,
You don't want to be trading if it makes you stressful and keeps you
After reading this, you will get a new perspective on price movements,
Please take this article as a basis for practicing these techniques and
EmperorBTC
1
before we discuss the Bitcoin Price Report of
In this issue,
After you have read this, you will be able to mark the Levels
many charts.
Your aim is to trade level by level, and this is the ONLY way
to remove fear.
levels on the charts so that after this day, you never fear
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START WITH THE MONTHLY CHARTS
This gives us the macro level and highlights where we are in the grand scheme
of things.
1. Use the linear chart to get a perspective of how high the run has been.
Note- We will stick to closes and open as levels. Hence the resistances and
support for various time frames will be the closes and the opens.
The 4 levels to be marked on each time frame are open close high low.
The monthly linear helps us to determine how big the move has been and if any
pull back occurs, it isn't anything extra ordinary considering the move up.
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PREVIOUS MONTHLY LEVEL HIGH
To further illustrate how to draw the monthly levels, have a look at the previous
cycle.
Notice how exactly after a year, a re-test of the same level happened followed
To be noticed, after the Breakout of this level at end of 2020, the next candle
For now, just notice the same movement after the Breakout candle BELOW the
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POINTS TO LEARN
1. Please see how huge the run has been from the previous ATH. This should
prepare you to always understand that any amount of pull back is NOT
should and can come down to the same degree. A trader shouldn't assume it
Monthly linear levels should prepare you to anticipate all kinds of movements.
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2. Always label your lines to make it clear. This will avoid clutter and give you a
This can be done by Right clicking on the Link and then go to text.
This is how I place my labels for the line. You can save this as template for
future use.
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THE MONTHLY CHART
Coming back to the monthly chart, these levels are what I would consider
movement.
ATH level.
Previous ATH.
Note:
During a Dump, placing small orders at these levels by assuming that at the
year open re-test, prices could see some demand wouldn't have been a bad
bet.
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So if I was trading or even holding, these are the Levels I would watch at the
Macro.
Bitcoin going to any of these levels shouldn't make you scared or surprise you.
We will learn about trading levels later, and find better probability.
Please look at the chart and practice marking these levels on your own.
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THE WEEKLY
Now after we have seen how to mark monthly levels, let's move on to the
weekly.
My Previous weekly levels are shown, and notice how they are completely
To reiterate, when we talk about levels, we are talking about the close and
the open. The idea here is that we place the levels in the weekly timeframe
by close open values. This way the wicks in a lower time frame
are actually false breakouts and deviations.
To keep the charts clean, I have only market the Levels of close and open. Later
If you see the level market above, you will see that we have essentially a range
where the market spent a lot of time, about a month... Once we zoom in, we
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Before we zoom in, let us quickly review how to trade a range.
3. Repeating 1 and 2 will make you gains until you are wrong one and taking
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THE WEEKLY RANGE
Here is a 4h graph. The range is determined by weekly levels place in close/open.
The range shown above is the same as we have earlier marked, but on a daily
graph for a zoomed in version. The range tutorial graph on page 10 can be
used to trade this range easily
The only problem you will face here is dealing with deviation and false Break-
Again, assume that a range will continue to exist forever and just trade it, both
I hope the weekly zoomed in levels have show how to utilise the range.
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Look at the number of trades we could have entered by just playing the range.
Of course Ranges will not occur in a straight line and a straight point. This
is what we need to deal with in future by studying liquidity grabs.
Ranges tend to repeat. A classic example of this move is illustrated in the chart
below.
Notice how the current dump from the ATH came back to the same range as
It is common for Ranges to be tested again, and the price to completely come
1. The above should make it clear that the Dump was not of a surprise or
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2. The Dump was simple price Action taking place and rotation of price to the
mean.
Knowing the above, the ranged marked and the probability of Ranges to come
back to their levels should prepare you for all kinds of movements, without fear.
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THE WEEKLY RANGE
Let's see how we draw the Levels in the daily time frame.
I have marked the price from which the Levels have been drawn.
Notice how these levels have existed for so long and worked even after the
Dump.
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Moving forward, let's mark the high and the low at the same place to see how
Notice how in future, after the Dump from ATH, the wick respected the previous
Note:
3. The Levels are mostly respected until they are not, as shown in the chart
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CONFLUENCE
After we have seen how to draw the Levels, let's look at how the confluence of
levels work.
If a certain point in the chart is having levels based in different Time frames, it
Note- Whilst trading, look for confluence of levels, Fibs, EMA and Volume
Profile.
These levels are respected and a confluence of the same works as a good
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Here is a graph showing all the important levels I would have on a graph.
The Levels would act as the Ranges that I would be looking at for opportunities
These are Macro structures for the longer term, which means I should be
I have labelled all the Levels for your convenience. Also, look at the yearly and
Instead of wondering where the price will drop, your view changes to 'This is
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Tip:
If you are trading a time frame which doesn't need the higher time frame
levels, you can hide those levels. However, there's a better way to manage your
Click on the Object View tab and it will show you all the Drawing and
You can choose to hide or unhide the lines and objects you need/don't need.
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To make it more organised, you can click on create folder and put all the
Eg. I have put everything of the monthly level under one folder and hide/unhide
it if need be.
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Learning the Object Tree feature will help you keep the charts organised and
help in analysis, so you don't have to delete and rearrange things again.
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DEVIATION
A brief talk about Deviation.
Market always tries to stop out the retail, this is how it has always been.
The market tries to knock out trades and orders that are places at obvious
expect a Breakout.
As you can see, the Breakout perfectly happened here. But notice a dip below
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Why does the market do this?
Many retail traders would have placed their stop loss below the support. This
would have led to many traders getting stopped out EVEN THOUGH their
This is an act of stopping out the retailers and it can happen often. This is a
liquidity grab event and stop loss placed provides liquidity for the buyers to
buy at a lower price (Stop Loss placed is a sell order).
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RECLAIM
I will briefly describe what a reclaim of a level is.
Price Action traders look for this action while deciding if the range has been
broken and if they should take a trade for the higher levels.
A reclaim happens when the price moves past a certain level and pulls back to
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CONCLUSION
The aim of this letter was to turn everyone of you a level to level trader.
Prices don't move randomly but move to levels of interest of demand and
supply.
Price will choose a level according to auction at which there is demand and
The EXACT same methods of highs, cycle high, period high and other levels will
be applicable for ALL time frames, even the minute and second time frame.
From the next issues, I hope everyone has grasped the concept of levels and is
Also, connecting with you guys has been the best thing of my life. It a slow
EmperorBTC.
LINKS
Range intro:
https://twitter.com/EmperorBTC/status/1397894689764696065
Break-outs:
https://twitter.com/EmperorBTC/status/1401219674256207872
PA Intro: https://twitter.com/EmperorBTC/status/1401219674256207872