Trade Grades Explained: L1-L3 in One Minute

3 Jun 2025 · 1 min

Watch on YouTube

0:39

In this brief video, Roman Ceccardi outlines a simple three‑level system for grading trade setups. Level 1 indicates that not enough criteria are met, so no trade is considered. Level 2 signals that a setup is forming—some criteria and direction are present—but it still isn’t a confirmed trade. Level 3 represents a high‑confidence, A+ trade where the majority of factors align. Ceccardi illustrates the framework with recent market examples, noting a 2.5‑grade yesterday and a Level 2 view today, and highlights price‑rejection as a key signal that could push a setup toward Level 3.

Chapters

And the way I approach this is that I grade my trade setups on 3 levels of 1, 2, and 3. Level 1 is that just straight up not enough factors have been met. And so this is not even a trade idea. So yeah, no trade yet. Level 2 is that it's starting to shape up, right? We're starting to see a few criteria being met. We're starting to see the direction, but it's not shaping up to be a— like it's getting there, but it's not a trade yet. And of course, level 3 is your, you know, A+ trades or like, yeah, this is definitely a trade. Yesterday we were at a level 2.5, something like that. And again, today is going to be more of a level too, because if you take a look here, we have a reason to believe that price is going to get rejected here, but it hasn't happened yet. And