A three-level grading system for trade setups: Level 1 is not a trade, Level 2 is developing but not ready, Level 3 is high-quality and ready to take. The speaker notes a current setup sits around Level 2 because the anticipated price rejection hasn't happened yet.
Not enough factors met — not a trade idea.
Some criteria are present; the direction is forming but it’s not yet a confirmed trade.
A high-quality (A-plus) trade — clearly a trade to take.
And the way I approach this is that I grade my trade setups on three levels of 1, 2 and 3. Level one 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 two is that it's starting to shape up, right? We're starting to see a few criteria being there. 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 three is your, you know, A plus 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.
