Crack the Code: A Step-by-Step Guide Across Levels

Hello, my friends!

The market was quietly building up in a neutral zone - a classic setup some traders might call an inside day, others the 50% fib zone.

It’s almost funny how often this happens right before the New York open, with price landing perfectly on a high-volume level, poised to squeeze.

The timing couldn’t be more perfect!

The clues were all there, hidden in the levels and what they represent - always offering us a glimpse into impending volatility.

• While the market holds its breath, the Fear and Greed Index has surged nearly into the Extreme Greed zone, the highest it’s been all year.

In moments like this, the goal is clear: to have a step-by-step checklist ready to anticipate these volatile moves before they even begin.

So, let’s dive in and become prepared!

Lessons from the Trenches 📚🧠

Picture this!

Nasdaq had been calm during pre-market floating between support and resistance levels, no major movement, nothing to get excited about.

Then, 15 minutes after NY open - a massive squeeze. Prices started moving at lightning speed. Traders around me were panicking, scrambling to close positions or make split-second decisions.

But I had a plan…

I’d been through this before, but this time, armed with a step-by-step guide I crafted from past hard-earned lessons, I was ready to outpace the market's speed!

Step 1: Recognize the Squeeze It’s easy to get caught up in the frenzy when prices start moving fast. Before the chaos begins, look for signs of tightening ranges and building momentum.

Step 2: Identify Key Levels in Advance The mistake many traders make is reacting to price movements without a plan. I had plotted key 0DTE levels with high reaction confirmations that offered the cleanest blueprint on my chart.

Step 3: Watch the Volume Volume is a crucial indicator during a squeeze. As prices raced up and down, I focused on volume spikes. This told me when the move had strong backing and when it was starting to weaken.

Step 4: Avoid Overtrading One of the biggest challenges during a squeeze is the psychological pressure. It’s easy to get swept up and make too many trades, chasing the market. Less stress and better outcomes.

Step 5: Confirm the Blueprint Before entering any trade, it’s crucial to ensure that your trade idea has a clear, logical narrative that aligns with the market conditions. Every trade needs a "story" behind it - a reason that supports your decision. Once it starts moving in your favor, it’s just as important to have a pre-defined plan of action and knowing exactly when and where to start reducing your risk.

That day could have gone horribly wrong, but by following this step-by-step approach, I stayed in control and capitalized on the market’s volatility. 

NY Impulse - Nasdaq (+1.01%)🗽📈

9:30-12:00 Est

• Today, my eyes were on Nasdaq, and for good reason—it presented the clearest path for entry, navigating smoothly from one level to the next.

• The first key observation: price was hovering just below the critical 0DTE high-volume level - 20,100. A break here would signal a shift from positive to negative gamma, setting the stage for an explosion of volatility.

• The first few minutes? Classic fake-outs! Risk management and patience were, as always, essential to avoid getting caught in the traps.

• Then, the market made its move…

• A powerful surge pushed past the 20,100 level with speed, barreling into the next key area of resistance - 20,175 before finally cooling off around lunchtime, resting at the 1-day max extreme.

• This was textbook Nasdaq action—fast, volatile, and full of opportunity!

Live Economic Speeches ⚡

• China's Commerce Minister, in phone call with US Raimondo: Urges US to improve the business environment for Chinese companies in the US.

• JPMorgan CEO Dimon: Deficits are inflationary and need to be dealt with.

• JPMorgan: The Fed was right to take the foot off the gas with a 50 bps cut.

• NQ 20,175 (0DTE Highest Level of Call Gamma)

• NQ 20,100 (0DTE Positive/Negative Shift)

• NQ 20,270 (1 Day max - Extreme Range)

0DTE Levels are key zones of significant options volume that can drive increased volatility as expiration nears, recalculated daily based on gamma expiration, trading volume, and market volatility.

Interested in learning how I manage key levels in the market? Join the community!

We have exclusive monthly and yearly offers. Every plan is at your own pace.

This daily step-by-step example isn’t just applicable to your trading - it’s a powerful framework for success in all areas of business.

As an entrepreneur, staying organized and having clear procedures in place is essential to avoid chaos and maintain control.

Stay ready, stay sharp, and you will watch your progress unfold.

Until next time,
Steve B
Founder, The Daily Impulse

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