Action Levels Guide

Action Levels are RelicusRoad Pro’s most revolutionary feature - AI-calculated leading indicators that identify where price is likely to react BEFORE traditional support and resistance zones form.

What Makes Action Levels Special

Leading vs Lagging

Traditional S/R (Lagging):

• Forms after price reacts
• Requires historical data
• Confirms what happened
• Reactive trading

Action Levels (Leading):

• Predicts future reactions
• AI-powered calculations
• Anticipates price behavior
• Proactive trading

The Technology

Action Levels use:

• Advanced AI algorithms
• Multi-dimensional analysis
• Real-time calculations
• Pattern recognition
• Institutional order flow modeling

Understanding Action Levels

Visual Representation

Blue Dotted Lines

• Potential support levels
• Buy zone indicators
• Bounce probability areas
• Bullish reaction zones

Red Dotted Lines

• Potential resistance levels
• Sell zone indicators
• Rejection probability areas
• Bearish reaction zones

Why “Tony”?

Named after the developer who created this groundbreaking algorithm, Tony’s levels have become legendary among professional traders for their uncanny accuracy.

Key Characteristics

1. Dynamic Adaptation

Action Levels continuously recalculate based on:

• Current market conditions
• Volume patterns
• Price velocity
• Market microstructure
• Order flow imbalances

2. Timeframe Specificity

Each timeframe has unique levels:

• M1: Micro scalping levels
• M5: Short-term reactions
• M15: Intraday structure
• H1: Daily bias levels
• H4+: Major inflection points

3. Symbol Optimization

Levels are specifically calibrated for each instrument:

• Forex pairs: Spread-adjusted
• Gold: Volatility-weighted
• Indices: Volume-based
• Custom calculations per symbol

Trading Strategies

Strategy 1: First Touch Trading

The Concept: Trade the first time price touches a fresh Action Level.

Setup:

1. Identify untouched level ahead
2. Set limit order at level
3. Tight stop beyond level
4. Target next Action Level

Example:

EUR/USD approaching 1.0925 (Blue Action Level)
Limit Buy: 1.0925
Stop Loss: 1.0920
Target 1: 1.0940 (next Red Level)
Target 2: 1.0955 (major Red Level)
Win Rate: 73% on first touch

Strategy 2: Confluence Trading

Maximum Probability Setup: Action Level + Traditional S/R + Liquidity Level = High probability trade

Requirements:

• Action Level present
• S/R zone alignment
• Liquidity Level nearby
• Session timing optimal
• No major news pending

Execution:

• Enter at Action Level
• Stop beyond confluence zone
• Multiple targets
• Trail remaining position

Strategy 3: Breakout Anticipation

The Edge: Action Levels often mark breakout points before they happen.

Process:

1. Price consolidating
2. Action Level appears beyond range
3. Position before breakout
4. Ride the momentum

Risk Management:

• Smaller position size
• Wider initial stop
• Quick exit if fails
• Add on confirmation

Advanced Techniques

Multi-Level Analysis

Cluster Identification: When multiple Action Levels converge:

• Extremely high reaction probability
• Major reversal potential
• Institutional interest zone
• Wider stop required

Trading Clusters:

1. Mark cluster zone
2. Wait for price approach
3. Look for reaction signs
4. Trade the bounce/break

Divergence Trading

Action Level Divergence:

• Price makes new high/low
• Action Levels don’t follow
• Indicates exhaustion
• Reversal imminent

Example:

Gold at 1950 (new high)
Highest Red Action Level at 1945
Bearish divergence signal
Short opportunity developing

Range Prediction

Using Levels for Ranges:

1. Note furthest Blue Level below
2. Note furthest Red Level above
3. This defines probable range
4. Trade between extremes

Practical Applications

Scalping with Action Levels

M1/M5 Scalping Setup:

• Focus on nearest 2-3 levels
• 5-10 pip targets
• Immediate stop loss
• High frequency trading

Execution Speed:

• Set pending orders
• Use one-click trading
• Mental stops ready
• Quick profit taking

Day Trading Framework

Daily Routine:

1. Pre-Market (30 min before)

   • Mark all H1 Action Levels
   • Note level clusters
   • Plan potential trades

2. Session Start

   • Watch first level test
   • Trade the reaction
   • Adjust for momentum

3. Mid-Session

   • Reassess levels
   • Note new formations
   • Adapt strategy

4. Session Close

   • Review performance
   • Note successful levels
   • Plan next session

Swing Trading

Position Trading with Levels:

• Focus on H4/D1 levels
• Major reaction points
• Hold through retracements
• Scale at each level

Integration with Other Tools

Power Combinations

1. Action Levels + Arrows

Action Level touch +
Reversal Arrow =
High probability entry

2. Action Levels + Signal Cloud

Price in cloud +
Approaching Action Level =
Breakout imminent

3. Action Levels + Sessions

London open +
First Action Level test =
Session direction established

Risk Management

Stop Loss Philosophy

Beyond the Level:

• Minimum 5 pip buffer
• Account for spreads
• Consider volatility
• Respect the level

Mental Stop Approach:

• If level fails cleanly
• Exit immediately
• Don’t hope for recovery
• Preserve capital

Position Sizing

Level-Based Calculation:

1. Distance to Action Level
2. Add safety buffer
3. Calculate risk in pips
4. Apply percentage rule
5. Determine position size

Common Pitfalls

Trading Mistakes

❌ Trading Every Level

• Focus on major levels
• Require confluence
• Consider context

❌ Ignoring Failed Levels

• If level breaks cleanly
• Becomes opposite signal
• Adjust bias quickly

❌ Static Thinking

• Levels are dynamic
• Constantly updating
• Stay flexible

Psychological Challenges

• Trusting the AI
• Acting on predictions
• Handling early entries
• Managing drawdowns

Performance Metrics

Statistical Edge

First Touch Success Rate:

• Major Forex: 71-74%
• Gold: 76-79%
• During sessions: +5%
• With confluence: +8-10%

Risk:Reward Achieved:

• Average: 1:1.8
• With trailing: 1:2.5
• Best setups: 1:4+

Tracking Success

Monitor:

• Hit rate per timeframe
• Best performing pairs
• Optimal session times
• Confluence combinations
• Average R:R achieved

Expert Tips

From Professional Traders

1. “Never ignore Action Levels”

   • Even if not trading them
   • Mark for awareness
   • Influences all decisions

2. “First touch is gold”

   • Highest probability
   • Clean reactions
   • Worth waiting for

3. “Clusters are gifts”

   • Multiple levels together
   • Major reactions coming
   • Prepare in advance

FAQ

Q: How far ahead do levels appear? A: Typically 20-50 pips from current price, updating as price moves.

Q: Do levels repaint? A: No, once formed they remain fixed until hit or market structure changes.

Q: Which timeframe is most accurate? A: All calibrated equally, but H1 shows best risk:reward ratios.

Q: Can I trade news with Action Levels? A: Yes, but expect volatility. Wider stops essential.

Q: Why are some levels stronger? A: AI assigns probability weights. Thicker lines = higher probability.

Continue to Daily High/Low Levels or explore Advanced Strategies.