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SmartLevels FAQs

What are SmartLevels?

SmartLevels are the artifacts left behind from the Auction Market process. When you know how to identify the auctions (not Market Profiles) that happen in the market evey day, you have key levels from which to implement your trading decisions. SmartLevels are created using a unique implementation of the Auction Market Theory. Once you learn how to identify the SmartLevels, you will never look at a price chart the same way again!

What Tools are Required for Creating the SmartLevels?

To find and implement the position trading levels, you don’t need any special tools other than a charting package that lets you place horizontal lines. You can also day trade off of the position trading levels. For the day trading specific levels, you do need a volume profile drawing tool of some kind. Right now InvestorRT/MarketDelta, TradeStaton and the Rancho Dinero tool for NinjaTrader are the only ones that I know about.

Is there a free open source tool that one can use to create the SmartLevels?

Funny you should ask... One trader took it upon himself to create a tool for his own use. He has graciously offered the tool and the source code for free to anyone that would like it. He also created some great instructional videos to help get you started. There is no support for this tool but it is fairly simple to use and there is plenty of instruction included in the download. You can download the self-extracting file by clicking here.

Do the SmartLevels work on Forex?

When trading the Forex, there is actually some “volume” data available. If one trader trades 100 contracts on the S&P 500 Emini futures contract and another trader trades 1 contract, the exchange reports a volume of 101 contracts. For Forex Trading, if one trader trades 100 contracts and another trader trades 1 contract, it is reported as a “volume” of 2 trades. This seems like a big difference. However, because the volume in the Forex is so huge and because most traders are trading more similar volume levels, it does not make a difference for our purposes. I ran a two week study with a Forex trader and the SmartLevels worked just as well on the Forex as they do on the other markets that I follow.

Do these pants make my butt look too big?

Of course not! The pants completely cover your butt and the fabric is wonderful!

How long does it take to create the SmartLevels every day?

Coming up with the SmartLevels support and resistance on a single market each day should take less that 10 minutes. It’s really not very hard when you know what you are looking for.

SmartLevels vs Pivot Points?

SmartLevels primarily use a form of Auction Market Theory that studies the volume traded at each price level. Used properly, this insight can let you know, in advance, the support and resistance levels that the market will react to more strongly. Once you are armed with that information, it will improve your trading no matter what you are doing. There are times when the market is simply trading in a random fashion where any trading approach will find it difficult to be profitable. The key is to know when to be engaged. You want to be engaged when the market will be moving decisively one way or another. Conversely, you want to avoid making trading decisions in areas where the market is primarily behaving in a random manor or is sure to run into support and resistance contrary to your trade.