For example (a buy), once the market reaches the highest entry price of the support zone (1262.00) the ladder will simulate a buying the market.  See Figure 1.

Figure 1 shows that the support zone has taken us as high as 1266.25 and is now trading at 1263.25.  The price in the yellow is the two handle stop loss.

Simulated Trade Management

When a trade has moved 5 or more handles (this number will differ depending on the market or how volital the market may be) in the money and proceeds to give back more then half of the potential profit, the trade will be closed and moved to the Closed Trades window on the dashboard.

For example, say the resistance zone of 1270.00 takes you down to 1264.75, putting the trade 5.25 handles in the money.  Once the potential profit drops down to 2.50, the trade will be closed.  You will see the following message in the Market Messages Box:

1. The short play of 1270.00 has given back more than half of it's potential.  The trade will be exited.
2. We have reacted from the 1270.00 level.  Be cautious the next time there.

After the trade has been closed, you will see that the trade zone will now only become the actual resistance number.  See Figure 2.

Since we have already reacted from this zone, we do not recommend selling it there again.  However, if the market trades back up to 1270.00, the price ladder will look like Figure 3.  It will place the two handle stop, which if violated, the number will be completely removed and you will see this message in the Market Messages Box:

1. The 1270.00 level has now been removed.

If the market reacts from the resistance area again, you will see a lighter color red instead of the normal darker color.

Note: You will not see these trades in the Open Trade box on the Dashboard.

The level will also removed if we hit an area of support or vise versa for long trades.

Entering and Exiting Longs/Shorts

If the Market Price Ladder (MPL) is showing a long trade, and we hit a resistance zone, the long trade will be exited and the MPL will now display a short trade.

If you still see the first trade in the Open Trades box after hitting another recommended area of support or resistance, please close out the MPL and open it again.

File > Create New Market Price Ladder or CTRL + L on your keyboard.

Continue -- Click here to learn about the Market Meter

See also: Finding more information about a set level / support or resistance number