Strong vs Weak Levels: Score Before You Trade
Not every horizontal line deserves a trade. A systematic approach needs criteria for deciding which levels are actionable and which should be ignored.
Evidence, not appearance
Level quality can combine higher-timeframe relevance, the magnitude of the move away, cleanliness of prior reactions and whether repeated tests have consumed available liquidity.
Freshness matters
Repeated interaction can either confirm that a price matters or weaken the remaining reaction potential. The system should define how touch count changes the score rather than assuming more touches are always better.
Reject the grey zone
If a level is still forming and price repeatedly crosses it without clear rejection, classify it as uncertain. “No trade” is a legitimate output of a risk-controlled engine.
Implementation checklist
Automation principle: every visual concept should have explicit inputs, thresholds, states and an invalidation rule before it becomes trading code.
Educational content for software design and trading-system research. Not investment advice. No profit is guaranteed.