RSI: A simple method to trade trends and rangesI write this tiny article to share the basics or my use of ths RSI indicator, coupled to supports and resistances levels, as well as trend lines (or any indicator you want to use as SUP/RES (moving averages, vwap ...))
This use implies a bit of practice in spotting divergences, but let's be honest, many of them appear on previous supports or resistances, just look at these levels and you can be sure you'll find them if a reversal is about to occur.)
The second specificity is the use of a moving average applied to the RSI (in my exmaple, a 50 periods EMA)
I developped my own RSI+MovingAverage script, but I'm sure you can find similar scripts that have already been shared within the community, thats why I don't publish it for now.
Anyway, feel free to ask if you're interested in my script, it's obviously free.
Lets consider two different contexts:
Trends (Bullish/Bearish)
Ranges
In trends , there are two things to take into consideration.
Let's explain what we need to work on a bullish trend:
- If the price is on an interesting level (moving average, trend line, support), you can try to long upon the RSI crosses its moving average,
indicating the potential end of the current retracement (even better if a bullish divergence appears close to this price)
- If the price gets close to a resistance, and moreover if a bearish divergence appears on the RSI, you can consider it as a good exit price,
or wait for the next retracement in order to pyramide your trade (depending on your approach).
In a bearish trend, you obviously need to do the exact opposite, wait for retracements (flags or other), and find bearish divergences OR sell when the RSI is clearly crossing down its moving average.
Of course you can wait for the RSI crossing above/under its moving average to get another confirmation that the movement is starting.
You can see a few examples on the following screen
In ranges , it's even simpler. Once you found your support and resistance levels (it can be old levels that have already generated good reactions)
all you need is to spot bearish divergences on the resistance, and bullish divergence on the support.
I personally like to cut at least a part of my position when we reach 50% of the range, which can be often considered as a support/resistance.
It's totally up to you to exit on this point or not, depending on your preferences (simple scalping, anticipations of a range breakout to make a new trend, lower timeframe trend following, etc...)
Range example:
Additional notes
When you trade a divergence, try to always open your position when the RSI rebounds on the divergence line, and not after, remember that opportunities are everywhere, don't mind if you missed the last one, don't enter too late in a movement.
Even if a range is a global horizontal movement, it's still composed of alternations of bullish and bearish movements between the same supports and resistances, therefore, you're of course able to trade it as trends on lower timeframes
Don't forget to look at candles, which can also give you strong signals on important levels, on current or lower/higher timeframes. The price is always the key
Of course, think about the DOW theory.
M-oscillator
Kairi Relative Index - OscillatorKairi calculates the deviation of the current price from its SMA as a percent of the moving average.
If the percent is high and positive Sell (Overbought )
If the percent is large and negative Buy ( Oversold )
The trading strategy is similar to RSI, but the upper and lower limits will be determined based on previous results and not like RSI at a certain level ( 30 or 70)
The only divergences guide you needHello, everyone!
There are a lot of traders and many of them use divergence in their own way. Most of these ways lead to the deposit losses in the long run, because generate the late entries. I like to trade with Alexander Elder’s approach to the divergence. It has the clear entry condition and the small stop-losses in case of mistake. Divergences allows to enter the market exactly before the actual trend reverse, thus you always buy the dip and sell the rip, which produces the best risk to reward ratio. Foe divergence defining we will use MACD indicator, but you can choose any oscillator with zero-lne. After reading this guide you will be able to define divergences on every appropriate oscillator.
Let’s consider this approach!
Bearish Divergence
What is bearish divergence? For the true bearish divergence we should see four obligatory signs.
(1) Point C on the price chart should be higher than point A.
(2) Point C on the MACD is below than point A.
(3) The MACD histogram have to cross the zero-line to the downside to form the point B
(4) The MACD histogram have to cross the zero-lne to the upside after the (3).
Now it’s time to find the entry point. Point C is formed when the decreasing column appeared on the MACD. (5) It is the time to execute short position . Stop loss we should take above the point’s C high. As you can see we have the very small stop loss with the huge profit potential.
Next condition enhances the short signal:
(6′) Decreasing MACD lines while the price increases.
Bullish Divergence
Bullish divergence is the opposite to the bearish. We have to see the following conditions.
(1) Point C is below the point A on the price chart.
(2) Point C is above the point A on the MACD histogram.
(3) We have to see first MACD histogram crossover with zero-line to the upside to form the point B.
(4) Than we have to see the opposite crossover to the downside.
Now it’s time to wait the first increasing column on MACD histogram to spot the point C and (5) execute the long positions . Stop loss should be set below the point C low.
We can often see the price decrease continuation to the point D, this point is (6) also forms divergence, which enhances long signal, like the (7) divergence with MACD lines.
In this particular case the stop loss was not hit, but it could be the case. In this case we should re-enter position when the divergence conditions was met again.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
Momentum play on NQ 45-min via volume-weighted RSIOverview
Simple overbought-oversold momentum play using NEXT RSI , which blends volume analysis with momentum. Volume weighing of the algo reduces the lag and improves accuracy over vanilla RSI as volume often precedes price action. This is a contra-trend (momentum exhaustion) scalping strategy - use order management (TP, SL, trailing stops) and do not trade signal to signal (e.g. long-short-long) .
Strategy Rules:
- NQ Futures, 45min chart
- Long Entry when NEXT RSI crosses over 35
- Short Entry when NEXT RSI crosses under 65
Order Management:
- Take profit @ +$50
- Stop Loss @ -$50
Prerequisites and set-up:
- NEXT RSI configured to 21,3,65,50,35
- NEXT Strategy Visualizer configured to Signal Source: NEXT RSI, LE @ 35, SE @ 65
Volume-Weighted Divergence Play on AAPL 10R via NEXT RSINEXT RSI Divergence Play: Key Concepts
- NEXT RSI is a low-lag, volume-weighted momentum oscillator that often precedes price action
- Divergence play resets at each open (do not count prior session's highs and lows)
- Use as you would other divergence strategies: higher price highs, lower NEXT RSI highs = bearish; lower price lows, higher NEXT RSI lows = bullish
-Use a preset TP / SL and/or close if NEXT RSI retraces back to last relevant high or low
Target Market:
- AAPL 10R Chart
- can be used with almost any market; volatility helps
Order Management:
- Enter on forming divergence, 2 or more clearly separated peaks or troughs
- TP / SL at 30 cents (AAPL)
- Exit if price retraces to the last NEXT RSI top or bottom referenced when opening the position
Optional:
- Additional NEXT RSI strategies can be discovered using the free companion NEXT Strategy Visualizer
4 TIPS ON USING TECHNICAL INDICATORS 🤖🖥
Hey traders,
Technical indicators are an essential part of technical analysis.
With multiple different indicators on a chart, the trader aims to spot oversold/overbought conditions of the market and make a profit on that.
Though, I don't consider myself to be an expert in indicators trading, here are the great tips that will help you dramatically improve your trading with them.
#1️⃣ Do not overload your chart with indicators.
There is a fallacy among so many traders:
more indicators on the chart lead to an increase in trading performance.
Following this statement, traders add dozens of technical indicators to their charts.
The chart becomes not readable and messy.
The trader gets lost and makes wrong trading decisions.
Instead, add 1-2 indicators to your chart. That will be enough for you to make correct judgments. Do not overload your chart and try to make it clean: your task is to analyze the price action first and only then look for additional clues reading the indicators.
#2️⃣ Learn what exactly the indicator shows
The data derived from technical indicator must make sense to you.
You must understand the logic behind its algorithm.
You must know exactly what it shows to you.
Confidence in your actions plays a key role in trading.
During the periods of losing streaks and drawdowns, many traders drop their trading strategies. It happens because they lose their confidence.
You will be able to overcome negative trading periods only by being confident in your actions.
Only knowing exactly what you do, what do you rely on and why you can proceed even in dark times.
#3️⃣ Use the indicators that compliment each other
Many indicators are based on the same algorithms.
Most of the time the only difference between them is a minor change in its input variables.
For that reason, such indicators leave very similar clues.
In order to improve your trading, try to rely on indicators based on absolutely different algorithms. They must complement each other,
not show you the same thing.
#4️⃣ Price action first!
Remember that your trading strategy must be based primarily on a price action. Trend analysis and structure analysis must go first.
You must know the way to make predictions relying on a naked chart.
The indicators must be applied as the confirmation signals only.
They must support the trading strategy but not be its core.
❗️Remember that the indicators won't do all the work for you.
Indicator is just a tool in your toolbox that must be applied properly and in strict combination with other tools.
Would you add some other tips in this list?
❤️Please, support this idea with like and comment!❤️
How I Use the RSI Indicator for DivergenceThis indicator always works best on higher time frame charts because on the lower time frames it becomes too noisy and not consistent. Suggest not using below the 1H chart. 4H chart or higher is always best. Sometimes it's always easier to see a real life example rather than a drawn out one or simulated one.
Here is Why RSI Divergence Will Increase Your ProfitsRSI can be beneficial in your trading if you use it correctly. This printable cheat sheet will assist you in divergence, so you can trade more precisely and increase your profits.
To print this cheat sheet, Right-click the illustration below and then click Save as Picture.
What Is RSI Divergence? With RSI divergence, the relative strength index of a specific asset shows lower highs when the price uptrend hits higher highs. Conversely, when the price is trending downward, it will hit lower lows with divergence while the RSI hits higher lows.
In a bullish divergence scenario you will see RSI show what is called being OVERSOLD and you will see price action form a lower low while the indicator shows a higher low. This represents a transition of volume from seller to buyers and the last push lower is sellers LAST attempt to take control.
The opposite is true for a bearish divergence scenario. You will see price action form a higher high, the last attempt from buyers, while RSI shows a lower high. This is a classic OVERBOUGHT setup and can be very profitable when combined with the rest of your technical analysis.
Those setups give us reversal signal in trending markets as well as ranging markets.
Keep in mind using one strategy is not enough to have consistent profits. Use combinations of strategies and setups to increase your winning rate. Always trade with affordable risk.
What indicator do you use for Divergence? Let us know in the comments
Have a best profits
Artem Shevelev
Stochastic Indicator (How To Use It)Trading with Stochastic indicator involves the following signals: *Remember: Price Action Moves Before Momentum Changes!!!
Stochastic lines cross — indicates trend change.
Stochastic readings above 80 level — currency pair is overbought,
Stochastic staying above 80 level — uptrend is running strong.
Stochastic exiting 80 level downwards — expect a correction down or beginning of a downtrend.
Same for readings below 20 level — currency pair is oversold, staying below 20 — downtrend is running strong,
exiting upwards above 20 — expect an upward correction or a beginning of an uptrend.
There are also so called "trigger levels" that are added to the Stochastic chart at 20 and 80 levels. Those lines suggest when the market is oversold or overbought once Stochastic lines pass over them. You can only trade oversold and/or overbought areas OR use demand/supply zones to trade more. Price Action does not ALWAYS need to hit 20 or below or 80 or higher for you to trade, might be in a trend or at a fib ret golden level (50%-61.8%) reversal area.
Strategy 1. Trading Stochastic lines crossover
The simplest and common method of reading signals from Stochastic lines as they cross each other. Stochastic %K and %D line work similar to moving averages and:when %K line from above crosses %D line downwards traders open Sell orders. when %K line from below crosses %D line upwards traders open Buy orders.
Strategy 2. Trading Stochastic oversold/overbought zones
Stochastic by default has 80% level, above which market is treated as overbought, and 20% level, below which market is considered oversold.
Strategy 3. Trading Stochastic divergence
Traders are looking for a divergence between Stochastic and the price itself.
NOTE: You can change the numbers on Stochastic Indicator to whatever you prefer, but for scalping and/or day trading I like 5,3,3 (more sensitive)
Reversal Zone Indicator / bitcoin litcoinIn this video, I show my most recent indicator that I have created which spots reversal zones based on stochastic RSI indicator combined with MACD indicator.
Potential buy zones are indicated with green columns printed on the chart, and sell zones are in red. a signal is more powerful and accurate whenever its surrounded by black bars before or after.
Divergences Explained by a RaccoonThis video's purpose is to go over the fundamentals of divergences.
How to spot them and the effects they have.
I might make a video later on practical application and how to trade them; as well as how to combine them with other technical analysis tools and techniques.
And I should be doing a stream soon where we just spend an hour hunting divergences on different commodities; whether it's crytpo, stonks, or forex.
I hope this helps those trying to understand divergences.
Let me know if anything seems off or is confusing, I am more than happy to make another video to clarify anything that seems off or incomplete.
Thanks for watching.
15 Min Chart (ATR + BB indicator) Part 4 of 4Please practice using the Forex position size and risk calculator on all trades you make.
Noted on EURUSD 15 minute chart are:
Four possible entries into a sell trade on Friday
- Low volatility EurUsd has last 5 weeks or 56 ATR [er day. (Hard to scalp or day trades with low volatility pairs)
- I used minimum of 10 stops on low volatility pairs, but consult with ATR and either use 10 pip stop loss and/or X 1.5 to get stop loss to use
This is a scalping or day trading trading strategy, quick trades. Please practice using position size and risk calculator to get: 2% risk, trading lot size, stop loss and target(s) on 15 minute time frames, I look for 1:2 risk reward over higher, how much profit you made and how much one pip move is worth? You need to know this so you can manage risk and set appropriate stops and targets for low volatility and high volatility pairs in Forex.
IF you have a need to be part of the masses and trade EURUSD, then put your efforts into when both London session opens to London session ends.
Why, this covers Tokyo/London overlap and highest most liquid and volume 4 hour time which is London/New York sessions overlapping period.
1 Hour Chart (ATR + BB indicator) Part 3 of 4On 1 hour and 15 minute time frames, I would be looking for minimum of 1:2 RR setups.
Both noted examples on EURUSD chart of 1 hour charts you both:
1) Setup at end of Tokyo session (use last 1 hour red candle open) for entry into buy trade of next candle, using ATR x 1.5 for stops and targets, risk 18 pips vs 36 pip reward setup.
2) Setup at end of Tokyo session (use last 1 hour red candle open) for entry into buy trade of next candle, using ATR x 1.5 for stops and targets, risk 12 pips vs 24 pip reward setup.
These trades are either scalp and/or day trades, using both BB indicator and ATR indicator for timing purposes and stops and targets. If price is above BB 20 ema (yellow line), then look for buying trades and if price action is below BB 20 ema (yellow line), then look for selling trades.
NOTE:
From Chart set up of both trades: Please find a position size and risk calculator: Your account size, 2% risk- using noted stop losses and targets-
How much profit did you make? What is your trading lot size? How much USD money is one pip move worth? Do this on all trades you do for risk management.
PRACTICE on Sell trade noted on right side of chart, using 10 ATR, find stop loss, targets, RR setup, trading lot size, 2% of your account, etc...
4 Hour Chart (ATR + BB indicator) Part 2 of 4On daily and 4 hour charts, I would only be looking for 1:1 Risk Reward setups using ATR and Bollinger Bands. This is if you are day trading or swinging within the same week time period.
1st example trade (on chart): Uptrend/Bullish trend this past week
1) Look for price action to swing low (make a 4 hour red candle) that hits BB center 20 ema line (yellow), set up a 33 pip stop loss at open of that red candle related to a 22 ATR x 1.5 pips = 33 pip stop loss, entry would be at open of that same red candle and exit/target would be 33 pips above enter. 1:1 RR set ups are great, especially because they win get you high win rate %. This trade would have been done in same day for a 33 pip profit.
2nd example trade (on chart): Uptrend/Bullish trend this past week
2) Look for price action to swing low (make a 4 hour red candle) that hits BB center 20 ema line (yellow), set up a 36 pip stop loss at open of that red candle related to a 24 ATR x 1.5 pips = 36 pip stop loss, entry would be at open of that same red candle and exit/targets would be either at 1st target of 36 pips next day or during two days 2nd target at 72 pips (noted on chart). 1:1 RR to 1: RR set ups are great for 4 hour and daily time frames, because they will get you a high win rate %.
4 Hour Time frames are mostly for swinging at least for one to three days, if you close out all of your trades within the same trading week.
Your should practice calculating lot sizes and risk on these two noted trades, using your account balance, 2% risk and atr/pips noted on trades.
Use ATR (To Set Stop Losses & Targets)ATR (average true range) is I think the best indicator(period)- related to setting your stop losses and targets. This ATR indicator should be part of your plan, trading edge and strategy to utilize on every trade you do.
This is 1st article of four articles related to this subject:
Note: Will be doing three more articles on using ATR on lower time frames: 4 hour, 1 hour and 15 minute in the future.
Using ATR On Daily Chart (see example here)
On chart notice the following:
1) Doji (undecided daily candle at support, low volatility candle) - happened on a Friday
2)Notice 9 day bearish trend prior to daily doji candle
3) This daily doji candle had an ATR of 60 rounded up (fyi). On daily I keep ATR and Stop Loss & Target the same for any daily trade setups
4) Stop Loss/Risk: 60 pips
5) 2% of $5000 account is $100 USD risk on trade
6) $1.66 PER PIP MOVE on EURUSD or trading lot size is: 0.16667
6) This trade would have made you from $100 to $200 USD within this last week (conservatively), by Thursday and/or Friday. (4 to 5 days).
Can you wait? Do you have patience to trade daily? Larger time frames are easier to trade then lower time frames, but it is all relative to personality.
“How To” Video Overview of Indicator “CM_MACD_Ult_MTF_V2”Hello TradingView!!!
-Video Posted on 07-28-2021-
This video is a detailed video overview of the CM MACD Custom Indicator - Multiple Time Frame - V2 Release.
I will post the link to the Indicator within a few minutes after this video goes live on TradingView either in the Link to Related Ideas below, or I'll post a comment below with the link.
Thanks for you patience.
I'm so excited to be back. Please Post and feature requests for this indicator below.
MFI From Scratch
Hello, traders!
As you know, the knowledge of a coin be overbought or oversold can be very profitable for any trader. That's why it's very important to identify these states. Moreover, the indicator that help us has already been invented. Well, today we'll speak aboout Money Flow Index.
The Money Flow Index (MFI) is a technical oscillator that uses price and volume data for identifying overbought or oversold signals in an asset. It can also be used to spot divergences which warn of a trend change in price. The oscillator moves between 0 and 100.
Unlike conventional oscillators such as the Relative Strength Index (RSI), the Money Flow Index incorporates both price and volume data, as opposed to just price. For this reason, some analysts call MFI the volume-weighted RSI.
There are two possible ways of using this oscillator - diverhence and detecting overbought and oversold regions.
It's rather easy to detect divergence of price with MFI. If you don't know whhat divergence is, read our cheat sheet to be aware of such powerful tool.
The overbought and oversold levels are also used to signal possible trading opportunities. Moves below 10 and above 90 are rare. Traders watch for the MFI to move back above 10 to signal a long trade, and to drop below 90 to signal a short trade.
I hope, you'll find the information useful. I try to make the articles that are interesting for me. However, I want to know your oppionoin. Write down to comments what is intersting for you.
Using number of bars above tenkanSen as a way to determine trendHey, while searching ichimoku scripts it looks like all of them use signals like kumo breakout, tenkan cross above kijun etc as a strategy. This is how ichimoku is used in the west while it is not realy made to provide signals. It is used for market analysis using time theory, wave theory etc. Counting the number of bars before a day of change is also part of ichimoku kinko hyo.
Does anybody know a way to calculate the average bars above tenkanSen in specific situations. It would be very beneficial to know the average amount of bars above tenkanSen while above kumo Cloud etc
The RSI explained ! how to identify buy and sell signals Hello everyone , as we all know the market action discounts everything :) I have created this short video to explain what is the RSI and how to use it to identify buy and sell signals with this oscillator , everything you need to know about this indicator is right here.
Its been around since the late 70s so its probably one of the more established oscillators out there .
So lets check out the formula and how the RSI works :
RS=100 -100/1-RS
RS (relative strength) average X day up / average X day down
So simply lets say we are using a 10 days average so we check how many days the price closed up and we add them and we divide by 10 which would give us the average X days up.
And we do the same for the average X days down but we calculate how many days the price closed down and then we add them and divide by 10 ,And after all of that has been calculated we will always get a value between 0% and 100%
And that's why the RSI is considered a bounded oscillator it means that the value will always be between 0 % and 100%
The oscillator has 2 major zones which are the overbought and oversold zones. Anything above 70% is considered overbought and anything below 30% the market considered oversold .
So when the market reaches overbought zone it tells us that the market has gone up to far and its due a bounce back down , and the same when it reaches oversold zone it means that the market has gone to far down and its due a bounce back up.
So looking to buy or sell when the market reaches oversold and overbought is one strategy .
But because the market moves a lot and reaches these levels so much this way is not as reliable that much , the better way to use the RSI is to check if it has a divergence with the market price.
what is a divergence you may ask !!!
A Divergence is when the price of the market is moving in the opposite direction of a technical indicator, such as an oscillator, Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction.
These signals of divergences doesn’t happen that often but they do give us a better way to use the RSI .
And there is it that’s everything you need to know about the RSI and how it works it’s a really simple oscillator and its one of the most popular oscillators used by technical analysts.
_____________________________________________Make sure to Follow, Like & comment for more content_____________________________________________
If you have any questions please ask
Thank you for reading & watching .
Simple Indicators and Setups #3: Using Oscillator LevelsI'd like to talk about something that is probably the most criminally under-discussed part of being a technical trader: levels. It's great to learn what indicators work for you, how to scope out price supports, price resistance, trend lines, and things of that nature for sure-- but that's not everything. Being able to use oscillator levels to your advantage as part of a holistic approach to your active trading strategy is, in my opinion, a huge step missing from many technical trader arsenals.
To start, some people believe they're using levels with oscillators because they read that X is overbought and Y is oversold. This is complete bull. That's not how stocks work. A level that screams overbought for one stock doesn't mean jack for another. This is one reason I'm such a proponent of asset stables where you track limited assets you get to know over time. It gives you the context you need to know what price action normally looks like with the stocks you track, giving you an inside edge. It also helps you understand what "oversold" and "overbought" really look like on stocks that matter to you.
So let's get to it.
This is AMEX:SPY from 2018 through mid-2020, daily candles.
When I refer to oscillator levels I don't mean the 70/30 numbers you hear trotted out as a baseline for RSI. What I mean is looking historically at the asset to see what the lowest points and highest points have been and set horizontal lines (levels) at those points. What I like to do personally is set two: one for closing and one for entry.
On the image above, you'll see that when $SPY hits a historically low level on my momentum oscillator (the True Momentum Indicator by hCaosTrader here on TradingView) of around -92.13, this is historically a good pivot point in momentum and a good opportunity to go long. There is normally an upswing in bullish momentum at that level historically speaking.
When I say I have one level for closing and one for entry, I mean that you need to know where you're going to get out if you get into a trade. You have to have a plan for capturing profits and levels can help you get there. I'll go over my personal rules here. Keep in mind that I'm NOT just looking at momentum, I'm looking at it in the context of the chart. So if the rest of my indicators and price action say one thing but momentum says something else, I won't just dive into the trade.
Zooming in on one instance of this level being hit from the above image:
Price action dumps below the lower Bollinger Band and simultaneously hits the lower end of the momentum oscillator. This looks like a good buy to me due to the historically low pivot point and price being so violently outside the lower Bollinger (I covered how I use Bollinger Bands in a previous post). Given how violently the price ran down, I'd say this was a price volume gap fill.
My personal levels for profit taking are half at 0 (unless the rest of the chart is flaming crap then 100%) and the rest at the first opposing level. So if I am going long, the rest of my profit would be taken off the table at the first upper level on momentum.
This is a good example to use because it shows why that isn't always the case and why you have to look at everything in context with the rest of the chart. So on this one, I would have sold before hitting 0 because the price was approaching the midline of the Bollinger Bands, which is often reasonable support/resistance. So I capture 50% a little before 0 on the momentum oscillator. The final profit taking is again before the first upper level on momentum because price was approaching the 200HMA which is often VERY strong support/resistance. The price continues to go up but I don't care because I captured my profits and I'm not chasing trying to squeeze every cent out of every play.
This doesn't always work out so well. Here's an example:
As you can see the oscillator hits its historically very overbought level and there's definitely some gains up through the 0 level. In our model you would sell half at 0 on the oscillator not only because that's the target but because you're looking at the chart in context and see the price approaching the Bollinger midline. After that, the price kind of bumps around a bit but doesn't really move as we'd hope it would. Since the price rides the Bollinger mid, we close out the rest of the position and wait for a better setup. You don't make as much profit, maybe risk losing your initial gains, but if it turns out to be a loss it's not so bad and honestly normally ends up just being a break-even play.
Creating these levels is easy enough to do but you definitely want to do it on multiple timeframes. I like the 1, 5, 65 minute and 1 day candles personally. I only use the 1 minute candles for last hour entertainment but to each their own. When you're on the correct timeframe you just want to zoom out far enough to get a decent sample size of candles and use the TradingView horizontal line tool in the oscillator to set your levels. When you set these up yourself you'll be surprised at how commonly those levels are hit and what an amazing pivot point they create. If you only want the horizontal line to show up on one timeframe you can double click on the line and click on the "Visibility" tab to turn the line on or off for certain time frames. You may want to do this if you set up levels on multiple time frames because if you don't things can get pretty cluttered.
Always remember:
you have to look at everything holistically
levels provide a great target
As with anything in technical trading, the more you can quantify what movements are meaningful and which you can ignore, the better off you are. Using levels is a way for you to confirm or disconfirm whether you're seeing what you think you're seeing on a chart in a way that's simple and allows you to get lots of historical context without much work.