Scoring Market Intent from Structure, Liquidity Sweeps, and Price Action
Summary
The document presents a five-stage framework for turning market structure, liquidity, and price behavior into a directional hypothesis and trade plan. It evaluates context across four configurable timeframes: broad bias, traded structure, setup conditions, and entry confirmation. The analysis combines weighted components such as higher-timeframe alignment, sweeps, displacement, structural breaks, fair value gaps, rejection, and premium or discount location.
A conflict penalty balances opposing bullish and bearish evidence, while separate hard gates can require a fresh sweep, aligned displacement or structure, and a minimum reward-to-risk ratio before an ACTION state is allowed. The output condenses the analysis into a score, one of five decision states, a dashboard, and proposed entry, stop, and targets. The same analysis can support chart review or automated execution through a single mode switch. The article explains the system's architecture and design choices, but provides no performance results in the supplied text. Its weights and thresholds are explicitly starting assumptions that require tuning and testing; the framework itself does not establish profitability.
Key ideas
- A five-stage pipeline separates structural context, liquidity, price response, inference, and decisions.
- Four timeframes provide distinct roles for bias, structure, setup, and entry confirmation.
- Weighted evidence is balanced with a penalty for signals pointing in the opposite direction.
- Hard decision gates prevent a high aggregate score from overriding required setup conditions.
- The proposed score, thresholds, and trade plan are design choices that need independent testing.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.