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3.4 Playbook 4 – Identify High-Probability Setups (Signals)

1 min read

Goal: Quickly surface technically driven trade ideas for a chosen asset and timeframe, then jump to the chart to validate and plan the trade.

What the Signals Show #

Categories:

  • Trend: Identifies directional bias (uptrend, downtrend, neutral).
  • Momentum: Measures strength of price movement.
  • Volatility: Assesses market activity and potential for large moves.
  • Composite: Combines multiple indicators for broader analysis.

Scores:

  • Color-coded strength/confidence based on current technical conditions.
  • Not guarantees or P&L forecasts—use as decision support only.

Filters:

  • Asset, timeframe, trading style (scalping/day/swing), indicator type, complexity.

Context link:

  • Each signal opens the chart with the relevant indicators pre-applied.

Note: Signals are currently based on technical indicators only—no order-flow or DOM logic yet.

How to Use Signals #

Step 1: Open the Signals Space Click Signals in the left-hand navigation bar.

Step 2: Search & Filter

  1. Search your symbol (e.g., BTCUSDT).
  2. Select a timeframe (e.g., 1H, 4H, 1D).
  3. Apply filters:
    • Style: Scalping, Day Trading, Swing, Investing.
    • Category: Trend, Momentum, Volatility.
    • Complexity: Simple, Intermediate, Advanced.

Step 3: Sort & Review

  1. Sort by Strength/Confidence or Recency.
  2. Hover or expand a signal to see which indicators contributed to the score.

Step 4: Open Chart Context

  1. Click View on Chart to load the asset/timeframe with key indicators pre-applied.
  2. Validate structure, support/resistance levels, and risk/reward.

Step 5: Validate the Setup

  1. Check higher-timeframe bias (e.g., daily trend + 1H trigger).
  2. Identify nearby support/resistance zones.
  3. Assess volatility regime and liquidity conditions.
  4. Adjust indicators if needed.

Step 6: Execute (If Validated)

  1. If the setup fits your plan, switch to the Trading space.
  2. Size your position, set stop-loss and take-profit levels.
  3. Place your order—the Journal will log it automatically.

Interpreting Scores & Confluence #

  • Strong ≠ certain: Treat high scores as shortlists for manual review, not automatic trades.
  • Confluence matters: Prefer alignment across multiple indicators and timeframes (e.g., daily trend + 1H trigger).
  • Regime awareness: In choppy or low-volatility regimes, momentum signals decay faster—tighten criteria or stand down.

What You Can / Can’t Do (Current Scope) #

Can:

  • Filter, sort, and open chart context with indicators pre-applied.
  • Use signals as a scan to reduce market search time.

Can’t (yet):

  • Create push/email alerts for signals.
  • Build custom “watch groups” for signals.
  • Rely on order-flow or TPO logic in signals.

Best-Practice Checklist #

  • Define your entry and invalidation levels on the chart—don’t trade a score alone.
  • Log your reasoning in Journal notes to evaluate signal usefulness over time.
  • Periodically review which filters (style, category, timeframe) yield the cleanest follow-through for you.

■ Try it now: Open Signals, filter for Day Trading setups on BTCUSDT (1H timeframe), sort by Strength, and validate the top signal on the chart.

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