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Methodology · Engine · II.6

Target selection — structure first, projection second

structTarget = nearest resistance zone (long) / support zone (short)

if |structTarget − entry| / risk ≥ 1.4:
    target = structTarget            basis: "structure level" —
                                     a price the market has actually
                                     defended before
else:
    target = entry ± max(2 × risk, 2.5 × ATR)
    basis: "2R / 2.5×ATR projection"
    flag:  overheadWarning           the projection lies BEYOND a known
                                     level; price must chew through it

Why prefer structure: a level with prior touches is a real liquidity magnet and a real exit; a projection is just arithmetic. Why the 1.4 pre-check: if the nearest level pays under 1.4R, taking it as the target makes the trade nearly un-passable through the gates, so the engine looks past it — but honestly flags that the path runs through resistance.