Quick answer: For day trading, mark 2–4 key levels:
prior day high/low, the current range edges, and one major swing reaction zone.
The 2–4 level rule (why it works)
Most charts are overdrawn. Too many lines create analysis paralysis. The best levels are the ones that would change what you do if price hits them.
Step-by-step: a fast multi-timeframe workflow
- Zoom out: mark weekly high/low and the biggest obvious swing zone.
- Daily view: mark prior day high/low and any clean reaction zones.
- Execution timeframe: refine into zones (not lines) and remove anything “maybe.”
What counts as a “key” level?
- Repeated reactions: 2+ clean touches.
- Range boundaries: top/bottom of the box.
- Liquidity areas: obvious highs/lows where stops sit.
- Structure flips: resistance → support or support → resistance.
Wicks vs closes (quick rule)
- Volatile market → anchor zones to wicks.
- Clean trend → anchor zones to closes.
Checklist (save this)
- 2–4 levels max
- Levels are zones, not pixels
- Each level has a “why”
- Plan two scenarios: hold vs break
- Trigger + invalidation defined
A prompt for AI key levels
Find key levels on this chart screenshot.
1) Timeframe I execute: [fill in]
2) Identify 2–4 key levels (zones) and why they matter
3) Give two scenarios (hold vs break) with trigger + invalidation.Related posts
- Support & Resistance Trading
- Break and Retest Strategy
- Market Structure: BOS vs CHoCH
- Candlestick Patterns That Matter
- AI Trading Chart Analysis Workflow
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About ChartsGPT
ChartsGPT is an AI chart analysis app designed to turn screenshots into structured levels and scenarios. For support, contact anthonyvvza@gmail.com.