Market Structure Context

MADLevels behave differently depending on where price is within the broader structure.

• Levels near extremes are more likely to lead to rejection or reversal

• Levels within a range may result in slower reactions or consolidation

• Strong directional moves may continue through levels with little reaction

• Context helps determine whether to expect continuation or failure

Order Flow Interaction

MADLevels highlight areas where price is unable to continue despite ongoing activity.

• Continued buying without upward progress often signals weakening

• Continued selling without downward progress often signals weakening

• Repeated attempts to move through a level without success suggest loss of control

• Focus on how price responds, not just the amount of activity

Participant Behavior

• Levels often reflect areas where one side is losing control

• Reactions depend on how participants behave at the level

• Watch how price behaves, not just where the level is

Volume Charts

• Volume charts help filter out time-based noise

• More consistent representation of activity

• Often makes interaction easier to identify

Stacked Levels

When multiple MADLevels appear close together:

• Suggests repeated interaction in a narrow range

• Often acts as a stronger reaction area

• Price may slow down or consolidate instead of reversing immediately

Few Levels

When there are very few MADLevels:

• Suggests smoother price movement with less resistance

• Moves may continue more cleanly with fewer interruptions

• Lack of reaction areas can lead to sharper moves in one direction

• In slower conditions, price may consolidate and become less predictable

New York Open Context

• Market behaviour often changes during key sessions

• Levels formed before major opens may react differently

• Volatility can affect how levels behave

Confluence

• Levels aligned across instruments or timeframes may carry more significance

• Not all levels are equal

• Confluence helps prioritise which levels to focus on