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.