Hello Traders! Welcome back to arbitrage trade analytics. Today I’m going to show you how to use our level effectively. Our Level is the middle indicator <here>. Notice that the level has a both a ceiling and a floor; which is shown as the light blue line at the bottom and the top. So first of all, we use the Arbitrage level on tradingview like a carpentry level. A carpentry level measures the direction a picture is off either up or down or left or right. If the picture is perfectly level it is perfectly aligned. If a stock is perfectly level it is NOT MOVING. So this indicator is actually measuring if our bands are MOVING more up or more down or not at all. There are a total of 7 bands in our system and whenever ALL of our bands are pointing up we our level is officially starting a new uptrend. If you look to the right on this indicator, this is how FAST all of the bands are moving on whatever time frame you are currently using to trade within.
In this example US Steel X is gaining about .22 per day. Whenever we hit a ceiling or a floor on the level, the level lets us know this is the fastest the stock has ever risen or fallen in an absurd amount of time. So to be here, typically means it cannot sustain this speed!