S / R Levels - Oct 07 - 11

The expected volatility happened during the week - These golden levels serve as a validation tool for continuation or reversals. Choppy weeks precede big movements, access levels for 20 securities.

As expected, it was a volatile week, this edition has a visual reference of how important is the central level.

More Volatility Ahead is Likely:

See the weekly chart for the Volatility Index, previous bottoms in the SPX have matched a bearish reversal in the oscillator for VIX, today the oscillator shows a bullish reversal, which means more upside ahead, and subsequently, more downside for the SPX. See the black circles versus the red circle.

For that reason, managing risk is key, and the S/R levels have proven to be the range where price action occurs the week ahead, yes, these lines are set in advance, this information is very important for your chart if you trade any of the following securities:

SPX, NDX, DJI, ES=F, NQ=F, SPY, QQQ, IWM, NVDA, TSLA, GOOG, META, AMZN, AAPL, MSFT, GDX, SILVER, TLT, Bitcoin and Ethereum.

Seven layers are included, a central level with three resistances and three supports, monthly and weekly levels are updated.

This edition is special, since it presents a visual example of how to use the levels, the traffic light code makes much more easy to understand the previous weeks, and the current week that presented choppy price action, that is normal once per month.

Let’s Do a Recap of the Importance of The Central Level:

Every week, the central level is presented in advance for the week ahead, there is a level highlighted with this:

Observe in the following chart the central level for SPX during the last 18 weeks, the central level anticipated appears with the actual or completed price action that followed that level. History proves how valuable these levels are: