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.
