At each of your significant price levels it's important to know who is buying/selling/adding/scaling there. Be proactive, not reactive. $$
It is certainly good advice, and I need to ingrain this into my daily regimen to make it a habit. However you go about this, there is no magic formula or definite instructions. You have to come up with a model, fine-tuning it against experience to give you an advantage over other market participants. By considering their emotions and logic, you will become more proactive.
There is the buying side and a selling side on multiple time frames, with both professional and emotional market speculation. In the intraday SPY model below I've attempted to determine some prices for those on the buy side:
Notice that there is a zero for the Happy (sold at higher prices) emotional bull - figured that with that spike down at 11:45AM, they had a chance to reload. Also, the price 141.56 was a simple average of the numbers, but not including the Stop SX crowd (Stop Short eXit for a loss) since the price 143.74 is too far away.
I've used the comment feature of Excel to keep track of where the numbers come from.
The pivots are like magnets affecting the price action, and an iterative attempt to understand how it works will keep you grounded and able to shut out the noise.
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