Price Location

Key Level

A significant price level where market behavior changes

A key level is a price point where significant buying or selling occurred historically, creating a psychological barrier. Patterns at key levels have higher significance than patterns in random price zones.

How to Recognize

  • Price has reacted at this level multiple times
  • Round numbers (psychological levels)
  • Previous highs/lows
  • High volume nodes

How to Avoid

  • Only trade patterns at key levels
  • Mark key levels on your charts
  • Wait for price to reach key level before acting
  • Patterns in "no man's land" are less reliable