L1-L3 Day Grading—Super Simple

6 Jun 2025 · 1 min

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0:46

In this brief instructional video, the speaker outlines a three‑level grading system for assessing whether a given trading day is suitable for taking trades. Level 1 denotes a day with insufficient market clarity—choppy, rangy, and lacking a clear direction—making it unsuitable for trading. Level 2 describes a day where higher‑timeframe structures are aligning and a potential scenario is forming, so the day is placed on a watchlist but not yet trade‑ready. Level 3 represents a trade‑ready, "A+" day where the market direction is clear; the speaker illustrates both a successful entry and a missed entry on such a day. The framework is presented as a simple, practical tool for traders to quickly categorize daily market conditions and decide on trade execution.

Chapters

The way I grade my trade ideas and the way I grade if today is going to be a good day for trading is I grade it between level 1 to 3. Level 1 means that, you know, not enough things are present to where like today's definitely not a trading day. It's just too unclear, it's rangy, it's choppy or whatever. Like you do not know what is the clear direction. Level 2, which was this day, is when, you know, the higher timeframes kind of like adding up. Like, you know, like you have a clear scenario and price is getting there, but it's not fully there yet. So put it on your watchlist, but it's definitely not tradable yet. That was this day right here. And then you have level 3, which is a trade-ready day, which was this day right here. We caught the move cleanly. And this day right here, which we missed the entry, right? We were wrong on the entry, but overall the direction was super clear. And that's an example of a level 3 day, right? It's, in other words, like an A+ day.