Level (Level)

This function is available on the Add Study window and in the Formula Toolbox.

The Level function plots two lines, which identify the highest and lowest levels attained over a defined period. The methodology of the Level study allows the user to track one value, such as an average, and output another, such as the high, from the same bar.

Characteristics & Usage

Level is an overlay study, which may be used to define a trading range as these points are expected to provide support and resistance.

A move above or below the Level values may be considered a breakout from the trading range.

The Level study can be used as an effective measure of the strength of the bid or offer. Tracking the highest low serves as a measure of the bid and the lowest high serves as a measure of the offer.

The ability of Level to track one price while outputting either the same or a different price value allows the user to identify many different combinations.

Level is similar to the Channel study. The principal differences are:

Level is a far more flexible study, enabling the user to select the value to be tracked and different outputs.

Level identifies the highest and lowest Levels including the current bar, whereas Channel looks only over the preceding bars.

Calculation

Hi = Price of Bar with Highest Level over Period.

Lo = Price of Bar with Lowest Level over Period.