Once you understand the basics of the Major, Medium and Minor TradingLevels, you need to know that correction occur at these levels, markets are simply trend and correction of different degrees and here the MajorLevels carry more weight than the MediumLevels and the MinorLevels less than the MediumLevels, there are other levels and they will be taught later.
Markets being trends and corrections of different degrees that line up with the TradingLevels, so we can expect larger corrections at MajorLevels than MediumLevels and so on, in fact I mentioned that some numbers are stronger than other so TL1 is the strongest followed by TL5 them TL8 there are smaller levels as you get closer to the market but it's the same principle MinorLevel 1 is mTL1 followed by the second strongest number mTL5 then mTL8 and sure the other numbers have their pecking order.
There is a natural universal order to the expanding and contracting of a markets architecture but it’s a little early to talk about that, however you can see the common sense in the fact that is a market is moving up through 16 17 18 then most people would be thinking of 20, they may be thinking of selling or buying at this level, but the point is most people are thinking of this number, so this is where the most volume will be traded and this is where the correction will occur and yes all the numbers around the 20 are important but in varies degrees and this is what you need to learn.
I also mentioned volume in the last sentence, volume is so important and is the least understood, traders know it’s important as volume creates the price, in fact it confirm the price action, this is a little tricky but it is a subject you need to understand and we will teach you how to read volume, most traders don’t know if it’s selling or buying volume, the volume is the second most important element of trading.
I lost track there, but the point is that around these TradingLevels pattern will occur and this is where the pattern recognition is required, recognising certain patterns that occur across the levels, but the bottom line is that after the pattern across a level you need the price supported on a level before going long, we would never buy under a level as we would simply be facing resistance and resistance holds risk and trading is a game of risk management, if we were going short then we would only sell under a levels as a failed retest of that level, the price basically rejecting the level, is the point to sell, this can be confirmed by the volume.