This system produces 8 levels from yesterday’s open, high, low and close. There are 2 groups in this system and it is numbered 1 to 4. If is a broad symmetrical pattern formed by the 8 levels and the most important of it are the level 3 and 4.
Traders wait for the market to reverse if it hits on level 3 during that trade. usually they open a position against the trend. and set their stop loss associated with level 4. Day Trading within level 3 enables you to capture all the wrinkles that intraday market movement throws up, and the Level 4 breakout plays allow the less experienced trader to capitalize on relatively low risk sharp powerful movements.