Bjorgum

Bjorgum Key Levels


Key Levels Aims to capture 3 of the most significant points in price action

  • Breakouts
  • False Breakouts (Traps)
  • Back Checks

These 3 points alone, if properly identified, can be some of the most significant points of movement in the price history of an asset and bring significant gains to traders, if capitalized on. Here are a few examples of these setups

Breakouts

Breakouts can bring significant rallies as the market swings one sided after key levels are breached. This entry type can bring large trending runs to follow. Momentum is on your side, but the trade off is a higher entry.


False Breakouts

Also known as a bull trap or a bear trap, false breaks can lead to swift and significant reversals and potential for a large and sudden move to the opposite side. When a key level breakout fails to hold, parties entering to capitalize on the "epic breakout" can get left holding the bag forcing them to exit at a loss, which can double the force of pressure. Traps can bring swift gains from good entry prices. However, price is still in a larger trend against you so momentum is weak, so price action is susceptible to roll over.


Backchecks

Back checks are pull backs in trend that find middle ground to the 2 areas already described. Both momentum and entry price are decent, but risk is defined as a key level has flipped offering entry with stops below demand, or above supply.


Combining these 3 methods helps to diversify risk, understand trend development, and bring steady gains. This script helps to identify these points to traders with analysis of key levels, price structure, and trend direction, while providing visual signals and alerts for when they occur.


Best of luck in your coding and trading and thank you for your support
Release Notes: Display image update
Release Notes: Hey folks! Just a friendly reminder to set your chart to "Scale Price Chart Only" in the chart settings in the right margin when using this indicator as these setting prevents your chart from trying to scale to fit all of the detected zones to your screen! This will make everything more visually appealing, and keep everything the right size.

Release Notes: A few notes to consider

An alternative way to use this script is to use it like a standard pivot point is formed. By selecting the source for the pivots to "high/low" and lowering max zone size, we can snap lines from significant points, rather than zones. In the image below I set the max zone size to .015%, and selected "High/Low" as the source. As you can see, these are still significant points of interest. A user may even decide to put 2 scripts on the screen - one for zones, one for high/low.


Also, I had a question on how a pivot is formed, so just providing a little more information on the script and how it is calculated.

Below is an informative picture displaying how the script looks left and right to establish a significant point.


Cheers, and take care
Release Notes: Fixed typo in ToolTips, and altered aesthetics for visual appeal and softened colors

Release Notes: Made the size of the arrows for breakouts a little bit bigger, and a little more noticeable. Too hard to see!
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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