4.1 · The action badge — “what do I do?”
The badge at the top of the card is the primary answer. It says “ENTER”, “WAIT FOR PULLBACK”, “HOLD”, “REDUCE”, “EXIT” or “STAND ASIDE”. Note that this is a different axis from the market view. The view on a symbol can be “up” while the action is “wait for a pullback” because price is already extended. Direction and timing are not the same thing.
4.2 · The action matrix — three readers, one analysis
Three different people look at the same symbol, and you cannot tell them the same thing:
- Someone holding it: “do I sell, hold, or add?”
- Someone waiting in cash: “is this a place to enter?”
- Someone who can go short: “is this a short setup?”
The card answers all three separately. In systems with a single badge, “STAND ASIDE” was read by holders as “sell, get out” — when what it meant was “not suitable for a new entry”. Making that distinction is one of the most useful things the card does.
4.3 · Plan type — a plan you can actually execute
| Type | Meaning | What you see on the card |
|---|---|---|
| Entry plan | There is a direction; a trade can be opened | Entry, stop, targets, R:R |
| Protection plan | Direction is down and you are on a spot account | Trim zone, exit level, reclaim level |
| No setup | There is no measurable structure | No numbers — on purpose |
4.4 · Levels: entry, stop, target
Three numbers form the skeleton of a plan. Entry comes in two forms: a market entry (at the current price) or an entry anchored to a zone. In the second case the plan is conditional — nothing starts until price reaches the stated zone, and the stop and target are computed relative to that zone. The card says so explicitly; executing a “pending” plan immediately means executing a different plan.
4.5 · R:R and the noise floor — the most important line
Risk/reward is the distance to target divided by the distance to stop. 1:3 means that when you are right, you expect to make three times what you lose when you are wrong. It is the number everybody looks at, and the number that most easily fools them.
Here is why: move the stop closer to price and the ratio grows automatically. A 1:8 computed from a 0.3% stop looks wonderful — but if that stock already swings 2% on an ordinary day, the stop sits inside normal intraday movement and will be swept even when the direction was right.
A practical reading: 2×ATR and above is healthy. Between 1 and 2×ATR calls for care. Below 1×ATR deserves suspicion no matter how attractive the R:R looks.
4.6 · Setup grade — the letter and its reasoning
A setup is graded A, B, C or F. The letter alone is not information, so the reasoning is written next to it: “strong R:R”, “weak volume support”, “stop is not structural”. A low grade does not suppress the plan — but sizing down on a low-graded setup is the correct behaviour.
4.7 · The confidence figure
Confidence shows how strongly the model backs its own call. It is not a probability: 78% confidence does not mean “you win 78% of the time”. It summarises how well the evidence agrees with itself. Low confidence tells you the setup carries contradictory signals.
4.8 · Invalidation
The level and the condition that break the plan are written down. This is the least-read and most valuable line on the card: knowing in advance when to stop defending an idea is the only reliable way to keep losses small. Trying to define the moment you were wrong while you are already in the position is almost always too late.
4.9 · Horizon
Every call holds for a period, and the card states it in trading days: “this call is for 5–8 trading days”. The horizon does not come from a fixed table; it is derived from the symbol's volatility and the geometry of the stop. A wide-stopped, slow setup has a long horizon; a tight, fast one has a short horizon.
4.10 · The Devil's Advocate
The card contains two arguments the model produced AGAINST its own thesis. That is deliberate design: defending your own view is easy, constructing the counter-argument is hard. If reading the counter-arguments changes your mind, you should not have taken that position.
4.11 · Entry quality and extension
A symbol's direction can be right while price is already stretched. Extension is measured on a separate axis and stated separately. “Direction is up but it is late to enter” is not a contradiction; it is the most common situation, and it is why the card says “wait for a pullback”.
4.12 · Reading the God's Eye table
Five timeframes are listed with their directions. Read it this way: higher timeframes give context, lower ones give timing. If the higher frames are down and the lower ones are up, you are holding a bounce — keep the target small. If all of them align, the setup is strong and permits a wider target.