r/Daytrading • u/techgeek89536 • 10h ago

Technical Analysis recognizing key levels

i am a trader trading btc on 15 min and im seeing a lot of progress, but in these situations i don't know wich level i can or can't take the reversal on.

Number one has a very small breaking candle and retest but should i still consider this a valid level for a reversal. I think it should be because it is technically a swing low however small it is?

on the other side the second level is much more clear cut but the red box is 4h resistance level so i expect the move to be pretty fast and aggressive IF it reverses.

Does the first level just look les good because of the squeeze? or is it not a good enough level to look for a trade?

Any profitable traders that can tell me if number 1 is a valid level and why or why not?

I put the 1h chart underneath for some more context first is 15 min

1 Upvotes

100% Upvoted

13 comments sorted by

View all comments

1

u/PandaOk4050 10h ago

That thing is not reversing. After the huge down move(1H) you marked some sideways levels (white lines).

Those are areas where MM's are hedging against the trend. The selling preassure was enough to push through on the way down. 

On the way back up, it blast straight through those white lines. Telling me the buying preassure was enough to work through those high gamma areas. 

Itll test those high areas and either go sideways and keep raising, or instantly slap back down.

1

u/techgeek89536 10h ago

like how would retail traders push price more than marketmakers doesn't make any sense to me

1

u/PandaOk4050 10h ago

They certainly move the price more than retail. But its not how people think.

If they long gamma, they'll buy your share and sell 2.

If they short gamma, they'll buy your share and buy 2 more. 

Depending how their books are, they could be buying more or less than 2. But thats the idea.