One of the advanced uses that some of traders like most about the D7 Suite is to make dynamic use of the levels outlined by the D7 Levels script.
This update to the D7 Levels introduces simple alert system that consists about placing an alert when price cross either of Open Levels or the PoC Levels outlined by the script.
Just be aware that you will be presented with locked levels based on candles in the higher timeframe that already closed and the active non-closed candles which are subject to change in case of the PoC levels. The Opens are always fixed.
Some traders may use the alerts on the Opens for mean reversion trading while the PoC traders may find uses like flipping bias or simply REDUCE or INCREASE risk/size and in some instance use them as support/resistance much like the rejections on the Opens.
The Open levels are visible by default and the PoC can be activated in the D7 Levels options.
Every market will behave differently. It is at traders discretion to find ways to play around these levels which seem to give significant risk/reward edge to traders who like to specialize on them.
The alert system just make it easier for those D7 users to be aware and quickly make risk decisions based on them.
How to create the alerts
To activate you need to click on the 3 dots on the right of the script and click "Add alerts on D7 Levels"
There are two set of Alerts.
- Open Level Cross
- PoC Level Cross
Assuming we choose to set an alert every time Price crosses an Open Level.
We can set that alert to remain "Open-Ended" and trigger every time "Once Per Bar".
This ensure it will only trigger once during the same time-bar. In lower timeframes these levels can trigger alerts more often since price can take several crosses around same level across time.
If one want to not be bothered with alert overflow would opt to choose for example a 4H or 8h or a Daily or Weekly chart for even higher level alerts.
But if a trader want to be more actively engaged to what happens at certain levels because is doing active intra-day trading. Then setting those alarms around the 5m or the 30m timeframes would make more sense.
Again this is always trader's discretion and type of trading (swing, intraday, position) preferences.
For those who are familiar. This is an example of the Open Levels displayed on the 30m timeframe. It outlines recent Daily and Weekly opens and they can be used for confluence with technical invalidations.
The same chart but this time with the PoC levels which is also taking average prices of te Daily and Weekly timeframes.
And this is with BOTH levels in display. When there is a concentration or cluster of these levels grouped together we know we need to be more careful with risk allocation knowing that there could be soon a period of higher volatility and start or a possible reversal of a trend depending if it continuously trade above or bellow the the majority of those outlined levels.
Be aware that having alarms during these periods can become a bit annoying unless you opt to choose one type of alarm over the other OR make them to only triger once and expire the alarm immediately.
It is useful for the traders to make good use of the rectangle tool to map zones that seem to show strong confluence between some important levels and reveal sound macro technical support/resistances ranges.
In these cases instead of placing a "D7 Level alarm" it is probably better to place a "Price alarm" by clicking on the (+) icon next to price to set an immediate alarm on the price level.
Just make sure to check the alarms list and fine tune the alarm with extra options you may see fit like "once per bar close", "open ended", etc.
Here's good example that I personally use to map structurally important technical levels (using the Daily timeframe) just using a confluence of lines outlined by the D7 levels and making use of the square tool to manually extend these zones into the futures and offer my a map structure of most important price levels inside this trading range.
This process should be repeated in the Weekly timeframe for even more macro dominant levels.
The D7 Level alerts in these circumstances are not as useful but instead making use of Price level alerts make much more sense and is advised to make heavy use.