RD Key Levels (Weekly, Daily, Previous vWAP)
The RexDog Key Levels indicator plots the weekly open, daily open, and the previous day vWAP close.
These are all critical price levels (zones) to know when trading any market or instrument. These areas are also high probability reaction areas that you can trade using simple confirmation trading patterns.
First, I'll cover an overview of the indicator then I'll share general usage tips.
General Usage
Each one of these levels are important levels markets look use for continuation or failure of momentum and bias. I also find it extremely helpful to think of these levels as magnets, dual magnets. They both attract and repel price at the same time. Now you might say, how is that helpful to have opposing views at the same time? Be indifferent to direction, create your own rules on when these price zones repel or attract price, I have my own.
Here's the easiest way to use these price levels.
As price approaches one of these levels to expect a reaction. A reaction is price is going in one direction and price hits a price level zone and reacts in the opposite direction.
These are price zones, sometimes you will see a reaction right at the price but visualize these areas as zones of reaction.
A high percentage of the time when price approaches these level zones there will be a reaction. So trade the reaction.
How do you do that?
Simple. Trade patterns that repeat. I have 3 solid patterns I trade around these key levels:
The first pattern is early entry with precise scale in rules and a very effective protective stop loss placement.
The second pattern is wait for confirmation that the level holds. This requires more patience and for you to fully trust the chart. The benefit of this pattern is with confirmation you have even more precise stop placement.
There is a bonus third pattern I trade around these levels. I call this the confirmation and bluff entry. It's a combination of both of the patterns above. You wait for confirmation but on any pull back you call the bluff on the market and enter on key test. Trade management here is critical. In addition to the pattern you trade you should have a series of failure patterns that tell you to get out of the trade, I use 2 primary failure patterns.
I trade all markets, same system, same rules, so I'll show a few examples.
Usually I start with Bitcoin but let's start with equities:
BA - Boeing - 8 Trades
Here we see weekly low patterns, previous week low test, vwAP hold patterns, day magnets and day holding. Then 2 week failures and a double hold pattern.
These are all straightforward trades to execute following really simple patterns.
BTCUSD Previous vWAP and Day Open Trades
We see here on the circle areas both daily open and previous day vWAP zone tests. Within this chart are all 3 highly effective patterns I trade.
SPY - 7 High Probability Trades
Here we see a pDay vWAP mixed with a daily failure. Next a daily retest, then a pDay vWAP failure, then a vWAP capture and test. Then a double weekly failure test (great trade there) and finally a daily test.
I could provide more examples but most are just derivatives of the above examples.
These are all critical price levels (zones) to know when trading any market or instrument. These areas are also high probability reaction areas that you can trade using simple confirmation trading patterns.
First, I'll cover an overview of the indicator then I'll share general usage tips.
- Weekly Open - default is white/orange. White is when price is above the weekly open. Orange is when price is below the weekly open.
- Weekly High/Low - there are options to turn on the weekly high and lows. Default plot is circles. Green is the high. Red is the low.
- Daily Open - default is green/red. Green is when price is above the daily open. Red is when price is below the daily open.
- Previous vWAPs - aqua single lines. These are the closing price of the daily vWAPs.
- Top Indicators - The triangles at the top of the chart signify is price is currently above or below the weekly open. This is helpful on lower timeframe charts (5m, 15m) to get a quick indication when price is far extended beyond the weekly open. Green triangle = above weekly open. Red triangle = below weekly open.
General Usage
Each one of these levels are important levels markets look use for continuation or failure of momentum and bias. I also find it extremely helpful to think of these levels as magnets, dual magnets. They both attract and repel price at the same time. Now you might say, how is that helpful to have opposing views at the same time? Be indifferent to direction, create your own rules on when these price zones repel or attract price, I have my own.
Here's the easiest way to use these price levels.
As price approaches one of these levels to expect a reaction. A reaction is price is going in one direction and price hits a price level zone and reacts in the opposite direction.
These are price zones, sometimes you will see a reaction right at the price but visualize these areas as zones of reaction.
A high percentage of the time when price approaches these level zones there will be a reaction. So trade the reaction.
How do you do that?
Simple. Trade patterns that repeat. I have 3 solid patterns I trade around these key levels:
The first pattern is early entry with precise scale in rules and a very effective protective stop loss placement.
The second pattern is wait for confirmation that the level holds. This requires more patience and for you to fully trust the chart. The benefit of this pattern is with confirmation you have even more precise stop placement.
There is a bonus third pattern I trade around these levels. I call this the confirmation and bluff entry. It's a combination of both of the patterns above. You wait for confirmation but on any pull back you call the bluff on the market and enter on key test. Trade management here is critical. In addition to the pattern you trade you should have a series of failure patterns that tell you to get out of the trade, I use 2 primary failure patterns.
I trade all markets, same system, same rules, so I'll show a few examples.
Usually I start with Bitcoin but let's start with equities:
BA - Boeing - 8 Trades
Here we see weekly low patterns, previous week low test, vwAP hold patterns, day magnets and day holding. Then 2 week failures and a double hold pattern.
These are all straightforward trades to execute following really simple patterns.
BTCUSD Previous vWAP and Day Open Trades
We see here on the circle areas both daily open and previous day vWAP zone tests. Within this chart are all 3 highly effective patterns I trade.
SPY - 7 High Probability Trades
Here we see a pDay vWAP mixed with a daily failure. Next a daily retest, then a pDay vWAP failure, then a vWAP capture and test. Then a double weekly failure test (great trade there) and finally a daily test.
I could provide more examples but most are just derivatives of the above examples.
Notas de prensa:
This update includes the following new elements:
Plots
All plot sizes and colors can be customized in the settings > Style tab.
* Note: the previous vWAP is not a plot but a line. To turn that have unslect the "lines" optin in the Style tab.
NYSE Open Price
Now you can plot the NYSE or what is commonly called the cash market open. This is a great option for the futures and forex markets, even crypto often responds to this level at times.
This is simply the opening price at 9:30 AM Eastern US (NY) time.
If this isn't displaying change the Time Zone option on the Inputs setting tab. For instance, the Chicago timezone is on UTC-6, you can usually find this value on the bottom right of your chart.
Labels
A few things to note on labels.
Labels only show up on last plot. We tested it being displayed on every plot on the chart and it just didn't look great, especially if you have any other indicators on your chart. In the end the best option is to either learn the default color values or change them to something you will instantly know when you see them on a chart. This is just good practice for any trade system, that way you never have to guess.
The size, background and text color of labels is customizable but these settings are for all labels. Maybe in a future release we might release the ability to customize each label but that just seemed a bit much at this time.
Note there is also an override at the very top in Inputs > Label Settings > Hide All Prices in Labels. Selecting this will hide all prices in all labels.
* If this is set this will override each label individual "show price" setting and hide all prices.
That's all, enjoy and put to good use!
- NYSE Open Price Level - default blue dotted line
- Labels for all plots (see overview below)
- Code improvements
- Organized Input Panel
Plots
All plot sizes and colors can be customized in the settings > Style tab.
* Note: the previous vWAP is not a plot but a line. To turn that have unslect the "lines" optin in the Style tab.
NYSE Open Price
Now you can plot the NYSE or what is commonly called the cash market open. This is a great option for the futures and forex markets, even crypto often responds to this level at times.
This is simply the opening price at 9:30 AM Eastern US (NY) time.
If this isn't displaying change the Time Zone option on the Inputs setting tab. For instance, the Chicago timezone is on UTC-6, you can usually find this value on the bottom right of your chart.
Labels
A few things to note on labels.
Labels only show up on last plot. We tested it being displayed on every plot on the chart and it just didn't look great, especially if you have any other indicators on your chart. In the end the best option is to either learn the default color values or change them to something you will instantly know when you see them on a chart. This is just good practice for any trade system, that way you never have to guess.
The size, background and text color of labels is customizable but these settings are for all labels. Maybe in a future release we might release the ability to customize each label but that just seemed a bit much at this time.
- Turn on or off each label individually
- Customize label text for each label
- Show or hide price for each label individually
Note there is also an override at the very top in Inputs > Label Settings > Hide All Prices in Labels. Selecting this will hide all prices in all labels.
* If this is set this will override each label individual "show price" setting and hide all prices.
That's all, enjoy and put to good use!
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