Power levels trading

[chrisbenjy]

Hey guys,

 

Could anyone give me a quick overview of what these levels are and how you trade them? Also, do you calculate them yourselves or are they given as signals by someone else?

 

thanks :)

[bd vest]

For those using this concept, how strong you find the price reaction power levels when:

 

Volume > Open Interest?

[bd vest]

I make Power Level Law (PL). My thinking. I appreciate you can please interrupt my logic.

 

PL1: When price come down from above, and PUT volume > Open Interest for that level, that level act as support.

 

PL2: When price go up from below, and CALL volume > Open Interest for that level, that level act as Resistance

 

 

Why? Assume Market price move from 105 to 100 because of 1% smart big trader who cause the 99% trader lose their money.

 

Logic: Smart trader is PUT BUYER at 105 and also CALL SELLER at 105. He Then short underlying or cash market at 105 and push market down to 100. He also create many news to help this trade. When underlying reach 100, he now stop selling underlying. He have to buy back all short = create short covering buying pressure in cash market at 100 = support

 

Logic: To confirm that 100 cash level is good support, at 100 we have to observe the Delta relationship between Volume | Open Interest.

 

Eample 1:

 

Cash price is now 105, and for PUT strike 100 @ Cash Price 105, volume = 600, Open Interest = 1200

 

After price go down, Cash price is now 100, and PUT strike 100 @ Cash price 100, volume = 900, Open Interest = 4700

 

What this mean?

 

Logic: Volume go up, but open interest higher in relative comparision. Means Smart 1% PUT seller no thinking cash go lower. He buying cash big way so he know for sure market go higher. 1% now selling more PUT to collect premium from sucker small traders.

 

Conclusion:

 

Volume Vs. Open interest important data. When market price change, observing the change relationship between Vol & OI at new level provide confirmation or denial of Support level.

 

I post some charts for ES option levels soon.

 

If you trading intraday, open excel and each market hour begin, copy and paste option data to new worksheet. Then over 24 hours we have 24 worksheet and we can see if price indeed react like support for appropriate change in Volume & OI.

 

I make a trade , I post photo below.

Edited July 8, 2011 by bd vest

[bd vest]

http://img163.imageshack.us/img163/817/marketlogichighputvolum.png[/url]

[bd vest]

We confirm Power Laws 1 & 2 because using Call volume and Call OI, we use Inverse Power Law 2. (IPL2)

 

IPL2: When price go down from above, and CALL volume > Open Interest for that level, that level act as Support.

 

I make photo below for real trade I make right now from this logic.

[bd vest]

http://img813.imageshack.us/img813/817/marketlogichighputvolum.png

[⭐ c0py]

Guys,

 

I have just updated the Power Levels script.

 

New in v004:

 

- When applying script to chart it will now automatically remove old lines before adding new lines

- New option to choose a specific date to show power levels for.

 

plus some other minor fixes and improvements.

 

http://www.forexpowerlevels.com/data/ForexPowerLevels_v004.mq4

[guedesjunior25]

Amazing bd vest. That's what I was looking for, people who added ideas for making this system even better, for the good of all, and for free. Thanks

[guedesjunior25]

Guys,

 

I have just updated the Power Levels script.

 

New in v004:

 

- When applying script to chart it will now automatically remove old lines before adding new lines

- New option to choose a specific date to show power levels for.

 

plus some other minor fixes and improvements.

 

Hi c0py like always you have a very nice idea let us choose a specific day for levels.(good for comparisons of previous days)

We are very grateful for your work, especially me. I spent much of my time doing calculations and putting on the chart.

You made ​​my life gets easier. Thanks my friend.

[guedesjunior25]

And for those lazy readers asking the same thing like (what these levels are. how you trade them.how you know that they work.where you find these things) I have just one thing to say READ THE THREAD AGAIN AND AGAIN. We've answered these questions and many others. Thanks

[guedesjunior25]

A very good trade today on crude, if you use options levels...

 

http://i56.tinypic.com/1rw9pi.gif

[guedesjunior25]

Even with the news, urusd felt our levels.

 

http://i55.tinypic.com/30hskr9.gif

[chrisbenjy]

And for those lazy readers asking the same thing like (what these levels are. how you trade them.how you know that they work.where you find these things) I have just one thing to say READ THE THREAD AGAIN AND AGAIN. We've answered these questions and many others. Thanks

 

That aimed at me? All I was asking was for a brief overview, to see if it is worth reading through the thread, I didn't ask anyone to fully explain them and tell me exactly what to do. You should be efficient with your time. The more time you spend looking through forums, the less chance you get to earn trading experience. If I read every thread from start to finish that I'm interested in but have no idea whether it is worth it then I would have no time to trade, all my time would be spent in forums, and the majority of threads turn out to be a waste of time. Does that make me lazy? No it doesn't, it makes me efficient. I am far from lazy. Thanks

[guedesjunior25]

That aimed at me? All I was asking was for a brief overview, to see if it is worth reading through the thread, I didn't ask anyone to fully explain them and tell me exactly what to do. You should be efficient with your time. The more time you spend looking through forums, the less chance you get to earn trading experience. If I read every thread from start to finish that I'm interested in but have no idea whether it is worth it then I would have no time to trade, all my time would be spent in forums, and the majority of threads turn out to be a waste of time. Does that make me lazy? No it doesn't, it makes me efficient. I am far from lazy. Thanks

 

Good answer my friend, if you are not lazy, i will explain in a different way. Sometimes in the middle of the threat (not only this one but all that you already read) can contain an idea that can change the way you see the market. And i think that this threat is one that deserves to be read, i am a retail trader and try a variety of systems (like everyone here) and to be honest still studying other methods such as VSA, trying to improve our power levels. This is a good system and deserves a chance. Peace.

Edited July 9, 2011 by guedesjunior25

[guedesjunior25]

Even with the news gbpusd usdjpy also felt our levels. And remember, the levels are launched yesterday after the market close, And they work for the next day.

 

http://i53.tinypic.com/33c2agh.gif

http://i56.tinypic.com/sngydk.gif

[⭐ c0py]

Hello!

 

Due to popular demand I have updated the script again, now we have labels for the lines showing rank # and open interest value :)

 

http://img577.imageshack.us/img577/4049/91008602.gif

 

To see the labels ensure your chart has the option enabled here as below:

http://img692.imageshack.us/img692/2464/descriptionsz.png

 

Download v005 here:

http://www.forexpowerlevels.com/data/ForexPowerLevels_v005.mq4

 

Note: To ensure data is ranked correctly you need to delete all previous CSV files in the experts/files folder. This is because the data is ordered by open interest in all new downloads.

Edited July 9, 2011 by c0py

[guedesjunior25]

Hello!

 

Due to popular demand I have updated the script again, now we have labels for the lines showing rank # and open interest value :)

 

http://img577.imageshack.us/img577/4049/91008602.gif

 

To see the labels ensure your chart has the option enabled here as below:

http://img692.imageshack.us/img692/2464/descriptionsz.png

 

Download v005 here:

 

 

Note: To ensure data is ranked correctly you need to delete all previous CSV files in the experts/files folder. This is because the data is ordered by open interest in all new downloads.

 

AWESOME job like always. Thanks c0py.

[waldorfxt]

think there is a error in the code, when I add v5 to a chart it deletes all my other lines / objects not just the powerlevels..

 

had a look at the code, think the culprit may be some missing {} in the if code below

 

for(i=ObjectsTotal()-1; i >= 0; i--)

{

string HorizontalLineName = ObjectName(i);

if (StringSubstr(HorizontalLineName, 0, 10) == "Power Level")

Print(HorizontalLineName);

ObjectDelete(HorizontalLineName);

}

 

 

think it should be

 

for(i=ObjectsTotal()-1; i >= 0; i--)

{

string HorizontalLineName = ObjectName(i);

if (StringSubstr(HorizontalLineName, 0, 10) == "Power Level")

{ Print(HorizontalLineName);

ObjectDelete(HorizontalLineName); }

}

 

 

otherwise the if statement will only include the print line after it, and objectdelete deletes everything.

 

think that should fix it,

 

excellent script, thanks

[⭐ c0py]

think there is a error in the code, when I add v5 to a chart it deletes all my other lines / objects not just the powerlevels..

 

had a look at the code, think the culprit may be some missing {} in the if code below

 

for(i=ObjectsTotal()-1; i >= 0; i--)

{

string HorizontalLineName = ObjectName(i);

if (StringSubstr(HorizontalLineName, 0, 10) == "Power Level")

Print(HorizontalLineName);

ObjectDelete(HorizontalLineName);

}

 

 

think it should be

 

for(i=ObjectsTotal()-1; i >= 0; i--)

{

string HorizontalLineName = ObjectName(i);

if (StringSubstr(HorizontalLineName, 0, 10) == "Power Level")

{ Print(HorizontalLineName);

ObjectDelete(HorizontalLineName); }

}

 

 

otherwise the if statement will only include the print line after it, and objectdelete deletes everything.

 

think that should fix it,

 

excellent script, thanks

 

thanks for the feedback!

 

I have updated the script with your suggested change.

 

To all those who have downloaded v005 please download again to get this fix included.

[waldorfxt]

tested it and it is fixed !

 

Now just need a way to run the script automatically once a day....

[⭐ c0py]

yes I agree.

 

I assume it would need to be converted to an indicator first. I'm sure we'll figure it out soon enough :)

[sillykiddo]

copy

thanks a lot for the script AWSOME job but i have a question do u mind telling me where is the csv file we have to download it from?

thanks

[bd vest]

Anyone can say these numbers are same as Wisdom numbers? There was discussion someone was going to check with his friend who is subscriber. What is the feedback?

[⭐ c0py]

Hi, you do not need to manually download any csv files, the script does this for you :)

 

They will be placed in your experts/files folder after the script is applied to your chart.

 

copy

thanks a lot for the script AWSOME job but i have a question do u mind telling me where is the csv file we have to download it from?

thanks

[Hakim314]

Anyone can say these numbers are same as Wisdom numbers? There was discussion someone was going to check with his friend who is subscriber. What is the feedback?

 

These levels are MORE accurate then Wiz, cause he was trading ONLY AROUND some levels, and these are his words. And taking position 2lots playing around as scalping is more danger then seeing the BIG picture as wee see.

 

If You still have doubts, pls look at my picture below. it took me 40 minutes and I took 0,2, more in a future. But combining it with VSA it explains everything.

LOOK how there was a Selling Climax on GU at the bottom of the level. Next candle is signed as Shakeout means PRO's shake-out small investors creating illusion of reversal on lower TF but then, 300 pips in a minutes up.

 

[/img]http://img15.imageshack.us/img15/2779/todayc.png