Ludwig Levels

Red UP Level Major Resistance I exit all long trades at the UP Level. If
Market is in rotation, then I look for counter move off of this level. If Market
is in a Trend Day, then I still exit all long trades at this level. I look for the
Market to show if it is going to pull back looking for re-entry point or to Move
through the Major Resistance and create a new set of Ludwig Levels.

Magenta UP Minor Strong Resistance Usually close to UP Level to form a

zone. When UP Minor is stacked on top and equal to UP then that increases
the strength of the resistance.

Orange Target Level A target level on a long trade usually coming from the
Direction Level going up towards the Target Level. This is a partial exit for
multiple contracts. Again, it is important to know if market is in rotation or
trending and the larger degree trend.

Yellow Direction Level A balance point for the Levels.

Green Target Level A target level for a short trade usually coming from the
Direction Level going down towards the Target Level. This is a partial exit
area for multiple contracts. Know if the market is in rotation or trending.

Cyan DN Minor Level Strong Support Usually close to DN Level to form a

support zone. When DN Minor is stacked on top and equal to DN, then that
increases the strength of the support.

Blue DN Level Major Support I exit all short trades at the DN Level. If the
Market is in rotation, then I look for a counter move off of this Level. If
Market is in a Trend Day, I still exit all at this Level. I then look for the market
to pull back for a re-entry point in the direction of the Trend. I look at other
market components to determine if the Market will move through the Major
Support and create a new set of Ludwig Levels.

The best use of Ludwig Levels is knowing if the market is in rotation or in a

Trend Day and use trading techniques that support the Market Conditions.