📈

Greg Levels Methodology- Effective Trading Strategy and Charting Methods

May 16, 2025

Trading Strategy and Charting Guide

Introduction

  • Daily and 4-hour levels are the primary focus for charting, as they offer more solid levels of support and resistance.
  • Emphasis on keeping the trading system simple: "Simple equals more money."
  • Utilizes QQQ and NQ charts only, as they move together and are critical for this strategy.

Key Rules and Strategies

  1. Time Frames

    • Only daily and 4-hour timeframes are charted.
    • Avoid cluttering with smaller timeframes like 1-hour or 90 minutes.
  2. Importance of QQQ and NQ Together

    • Must chart both as they respect each other's levels.
    • Levels on QQQ are respected by NQ.
  3. Charting Approach

    • Daily levels are marked every day.
    • 4-hour levels are charted for high volume candles only.
    • Old levels should be removed if they have been triggered during the session.
  4. Color Coding

    • Use colors to differentiate levels to reduce confusion during trading.
    • Daily levels are prioritized over 4-hour levels.
    • Example: Red for latest daily open/close, Purple for previous day extremes, Yellow for 4-hour levels.
  5. Price Action Observation

    • Do not take trades directly at the levels; wait to observe price action.
    • Assess volume and reactions at key levels before entering trades.
  6. Level Importance

    • Daily levels act as main indicators for market direction.
    • Daily open, close, high, and low are crucial markings.
    • 4-hour levels are used for potential turning points or targets.
  7. Trading Mindset

    • Focus on fewer indicators and charts to avoid confusion.
    • Experience has shown that over-complicating leads to losses.
    • Aim to make trading decisions based on clean charts and clear signals.

Trading Execution

  • Observe price action on a 1-minute to 5-minute chart during active trading.
  • Look for high volume moves and reactions at marked levels to guide entry and exits.
  • Use marked levels as points for potential trade targets and stop-loss placements.

Practical Application

  • Conduct regular backtesting to validate the effectiveness of the strategy.
  • Practice charting sessions daily to ensure familiarity with the system.
  • Regularly review and adjust the strategy as necessary based on market behavior.

Conclusion

  • The strategy emphasizes simplicity and the power of fewer, well-chosen indicators.
  • Continual practice and adjustment based on market feedback are crucial for successful trading.
  • The trading strategy is adaptable to various markets, including Forex and SPX, albeit with testing.