A valid setup requires both robust market structure and a strict 2.5 R:R threshold.
def evaluate_price_action_setup(symbol):
# 1. VALIDATE MARKET STRUCTURE
# An Uptrend is a series of validated Higher Highs (HH) and Higher Lows (HL)
structure = get_market_structure(symbol)
if structure != "UPTREND":
return "PASS (Not in an Uptrend)"
# 2. IDENTIFY DEMAND ZONE
# Find consolidation immediately preceding a massive impulse wave
zone_top, zone_bottom = find_recent_demand_block(symbol)
# 3. CALCULATE RISK-TO-REWARD (2.5 LIMIT)
current_price = get_live_price(symbol)
stop_loss = zone_bottom * 0.999 # Just below the zone
take_profit = get_recent_swing_high(symbol)
risk = current_price - stop_loss
reward = take_profit - current_price
rr_ratio = reward / risk
if rr_ratio < 2.5:
return f"PASS (Risk/Reward is only {rr_ratio:.1f}, skip)"
# 4. EXECUTION
# Wait for price to touch the zone
if current_price <= zone_top and current_price >= zone_bottom:
return "EXECUTE LONG (Perfect Setup)"
return "WAITING FOR ZONE RETRACEMENT"