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What are the 5 Risk Levels?

Our Jin System consists of 5 Risk Levels to project the support/resistance of stock price. The chart below depicts the potential flow of the Risk Levels. In a proper cycle, Risk Levels flow from 1 to 5, under certain conditions, it may flow in a non-sequential manner.

5 Risk Levels

Let’s take Ezion as an example below:

Although Ezion is clearly trading outside the box for all the 5 Risk Levels, I have to remind everyone who is reading this post that most of the time after Risk Level 5 everything will get back to beginning of Risk Level 1 again. Why do I have to caution you? This is because from Risk Level 5 moving to Risk Level 1, it will most likely be range trading.

ezion

ezion2

Again I like to cautious trading near Risk Level 5 the swing can be wild, it is better to use this checklist to evaluate the risk/reward ratio.

5 risk levels

eg Ezion is trading now at price zone around 1.26. It could be within a few days or weeks that it hits where “most report” has mentioned 1.50. Anything under the sky is possible, meaning it can easily move within 3 to 4 days with just 10 cents price swing everyday before going into sideway range.

 

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