How to Use MADLevels

MADLevels highlight areas where price is likely to react or fail.

The trade comes from how price behaves at the level.

The Basic Process

1. Identify the MADLevel

Look for a MADLevel where price approaches or tests the area

2. Observe price behaviour

Watch how price reacts at the level:

  • rejection

  • inability to continue

  • repeated failure to break through

3. Enter on confirmation

Enter once the move confirms:

  • rejection → reversal

  • continuation failure → opposite move

Two Core Setups

Failed Breakout
  • Price pushes into a MADLevel

  • Unable to continue

  • Rejects

  • Trade: reversal

Failed Pullback
  • Price pulls back to a MADLevel

  • Unable to continue

  • Resumes direction

  • Trade: continuation

What to Avoid

  • Entering before confirmation

  • Assuming direction at the level

  • Trading every MADLevel

One Simple Rule

MADLevels show where to focus. Price action decides what to do.