4.5 Candle Position Filter (Structural Quality)
Entry quality is evaluated via the candle's closing position within its range:
pos = (C_t − L_t) / (H_t − L_t)
Where:
C_t= Close priceH_t= High priceL_t= Low price
Validation Rules
| Position | Direction | Interpretation |
|---|---|---|
| pos ≤ 0.25 | LONG valid | Close near low (potential reversal) |
| pos ≥ 0.75 | SHORT valid | Close near high (potential reversal) |
| 0.25 < pos < 0.75 | INVALID | Mid-range close (weak structure) |
Structural Quality
This prevents entries in structurally weak candle locations where momentum is unclear.