High / Low Lines

Learn how to find key levels to trade off while using our indicators as confirmation.

IDENTIFYING KEY LEVELS

Understanding key levels and "zones" within the market and learning how to use them to your advantage is an essential skill for any trader. In this section, we will show you an example using LUNAUSDT as our chart, and after we show how you can identify key levels, we will show you how to trade with this using our indicators.

LUNAUSDT 1 Hour Chart

Here we see a standard 1 hour chart, with no indicators or drawings on it. Little do we know, key levels are hiding on this chart, and can be easily found by drawing horizontal lines on past reversal points as well as tops and bottoms. All you need to do is find these points, and draw from the top and bottom of the candle body.

LUNAUSDT 1 Hour Chart with Key Levels Drawn

Now we have a few key levels that we can trade off. If a line is BELOW the price action, it becomes a potential support line, while if it is ABOVE the price action, it becomes a potential resistance line. We suggest drawing these lines on a higher time frame than the one you trade off of. In this example, we drew the lines on the 1 hour chart, but we will now be moving down to the 5 minute chart to trade.

TRADING WITH THESE LEVELS

The absolute safest way to trade with these new levels is to wait for a candle to break above or below one of our lines and then completely close. This usually signifies that the trend will continue, and as you can see below, if you entered a proper position on each of these moves, you would have been able to turn all of them into profitable plays.

LUNAUSDT 5 Minute Chart with Key Levels Drawn + Breakouts / Breakdowns Identified

Remember to ONLY enter a position if the candle has passed a line and completely closed above / below it. You must also remember to NEVER trade when the price action is in between two lines that you drew from 1 candle.

BRINGING IN ORIGAMI INDICATORS

Now we will show you the true power of using our indicators in combination with this strategy. Our indicators will allow you to get much better entry points, while still feeling comfortable with your trading decisions. In the photo below, you will see the same chart as the one above, but this time both Origami Indicators will be on the chart. Taking a look at the image will show you all the extra entry points that you could have used by taking advantage of our tools.

LUNAUSDT 5 Minute Chart with Key Levels Drawn + All Potential Entries Identified

As you can see, this is a very flexible strategy that can be applied across any time frames and markets. Our indicators try to make entry points as obvious as possible and we hope this strategy has given you a better idea of how using our tools can boost your overall understanding of any market.