The concept of this strategy is really simple and really easy to understand and follow. Here is a YouTube video that I found about it that is great at explaining the whole concept:
In a nutshell, you find Major Swing Levels on the timeframe one step above what you trade on normally. So, for myself, I trade on the 5 minute, so I would view the chart on the 15 min timeframe.
Now you just find the major swing levels, and when it breaks the swing level, you look for a retest of the previous swing level, prior to the new high or low. Check out the TSLA chart below:
Easily see the green are swing high, red is swing low.
Since this new move over 940 for TSLA passed the previous swing high of 915, that makes the new swing low, a little below 840.
Being in a uptrend, you use the previous swing high as a Major Swing Level or Major Key Level. The concept is easy, The previous swing high of 915 becomes a test zone and what this strategy looks for on the 5 minute chart is a double bottom to add calls in an uptrend.
On the first green candle after retesting that 915 major swing level, should enter calls, so I am going to be adding calls first thing at open tomorrow.