Violet levels are very similar to DarkOrange levels, with the difference being that Violet levels are determined based on the analysis of provided data in hourly cycles. This results in greater inertia compared to DarkOrange levels, which are more precise and show possible anomalies more quickly. The trading models are similar, but in the case of Violet levels, a FlowZone (FZ) is not designated.

Characteristics of Violet Levels

Violet levels, part of the DML levels for currency pairs, are characterized by precise price reactions when reached. When the price approaches a Violet level, it often finds solid support or resistance, preventing further declines or increases. This dynamic highlights the critical role these levels play in stabilizing the market and supporting the price in the short term.

Trading Models for Violet Levels

Violet as Support

For currency pairs where USD is the first currency (e.g., USDCAD, USDCHF, USDJPY), the Violet level acts as significant support during the Asian session and the early part of the European session, until 11:00 GMT. If this level is breached before 11:00 GMT, there is a high probability that the price will return to this level in the near future—often the same day, just before or during the American session.

Violet as Resistance

For currency pairs where USD is the second currency (e.g., AUDUSD, EURUSD, GBPUSD), the Violet level acts as strong resistance. If this level is breached before 11:00 GMT, the probability of the price returning to this level increases significantly—often the same day, just before or during the American session.

Additional Tips

• Precise Retests: When retesting the Violet level, the price typically does so very precisely, allowing for accurate entries in line with the established trend.
• No FlowZone: Despite the absence of a designated FlowZone, Violet levels are crucial for stabilizing the price and predicting market movements.
• Data Delivery Cycles: Violet levels are provided to clients in hourly cycles. However, these cycles are not related to traditional financial market observation intervals but are simply the frequency of data updates.

Summary

Violet levels, as an integral part of models related to DML levels for currency pairs, offer unique opportunities for identifying key support and resistance points and managing risk. By considering the specifics of currency pairs involving the US dollar, traders can adjust their strategies to enhance investment efficiency and precision in market analysis. However, it is important to note that Violet levels are also calculated for other currency pairs not involving the US dollar. On these pairs, Violet levels serve as support, resistance, and levels that the price often "touches" during its volatility. Therefore, Violet levels are a universal tool that can be applied across various markets and trading conditions.

Educational Page and Social Media

We invite you to follow our social media profiles (links available at the bottom of the page) where you will find the latest information. We regularly post updates on markets, DML levels, setups, and investment opportunities. To learn more about Violet and other DML levels, visit our educational page: edu.deepmarketlevel.com.