Traders Ask: How do you find levels “you love”?

BellaGeneral Comments, Mike Bellafiore's (Bella's) Blogs, Traders Ask2 Comments

Hi Mr. Bellafiore,

I read your book and have been a daily reader of the blog ever since. I especially appreciate your and Adam Grimes’s posts. I trade the e-mini (ES) but would like to trade more stocks if I can figure it out.

The recent post on execution was pointed. I suspect the difference in the trader who was shaken out and the one who got back in and profited lies in their confidence in the level. You also wrote recently
about “liking your level.” Can you give the readers a few tips about how to gauge the strength of a level. In other words, “How do I
learn to love my level?”


Everytime you trade off of a level give it a grade of (1-10) for you. Start to develop a sense for yourself how important each level is for you. Keep doing this and wait. Over time you will develop a nice feel for how important each level is.

For me here are three level I love:

1) Important long term technical level

2) Important intraday level

3) Consolidation in a bullish or bearish flag pattern

Today we met in our training room to watch film.  One of our traders asked how I know what price to take a great sale and then quickly replace that sale with a great buy.  This is an advanced trading technique and how we can make $1.50 when a stock move $1.  Peak into my response……

There are no answers.  There are questions.  I want you to ask yourself where a good sale is for you and where you should buy back.  Over time you will develop a feel for these answers.  We all trade differently.  We all see the screens and markets uniquely.  Keep asking yourself the right questions and you will in time then have your answers.

Mike Bellafiore

Author, One Good Trade

2 Comments on “Traders Ask: How do you find levels “you love”?”

  1. when probing a stock could you explan how you pay yourself while doing that
    eg enter 200 shares at x long moves up sell half moves agiant you sell all
    how to probe without taking a loss – how to play and size that.

    thank you

  2. here’s a simple answer. if a level is an objective level where supply and demand previously shifted or maintained equilibrium through some time, then love it or not, you can trade it. look for buying above the level to get long. look for selling below the level to get short.

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