Chart Fanatics
July 31, 2026
The Core Trading Rule: Trading Levels
TL;DR
The most important trading rule is using price levels to guide entries and exits, eliminating emotional decision-making.
Key Takeaways
- 1Price levels provide objective markers for entry decisions, removing the need to wait for perfect candlestick setups.
- 2Combining multiple timeframes or chart overlaps with price levels improves trade signal reliability.
- 3Using levels simplifies trading by creating a single framework that applies across different instruments like ES and SPY.
Notable Quotes
“Most important rule for me is just to use the levels.”
— Trader
Chapters
1. The Fundamental Principle
The core trading rule is simply using price levels to guide all trading decisions, making entry and exit points objective rather than subjective.
2. Practical Application
When price touches a predetermined level on the way down, that level serves as the trigger for entering a position without waiting for additional candlestick confirmations.
Glossary
- Price Level
- A specific price point on a chart where buying or selling pressure has historically occurred, used as an objective entry or exit marker.
- ES
- E-mini S&P 500 futures contract, a liquid index futures instrument used for trading.
- SPY
- Spider S&P 500 ETF, an exchange-traded fund tracking the S&P 500 index.