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MODULE 02 · LESSON 3 · 9 MIN

Anatomy of a Signal

Goal: Parse every field of a signal — tier, score, RR, entry, SL, TP1 — and read them in the right order.

A fired signal carries six fields. Learn the read order once and it becomes a five-second scan.

⭐ LEGENDARY LONG | entry 75800 · TP1 76900 · SL 75150 · RR 1.69 · score 9

1 — Tier and direction. The headline: how much evidence, which way.

2 — Score. The raw number behind the tier. A LEGENDARY at 9 and a LEGENDARY at 11 are both rare air, but you will learn to notice the difference.

3 — RR. Risk-reward to the FIRST target, computed before the signal was allowed to exist: reward distance (entry to TP1) divided by risk distance (entry to SL). Here: 1100 reward / 650 risk = 1.69. Every live signal already cleared the system's RR floor — you never see the ones that failed it.

4 — SL. Not a suggestion — a thesis statement. The stop sits beyond the structure that fired the signal. If price trades back through it, the reversal thesis is simply wrong, and wrong theses get closed.

5 — TP1. The first structural objective. Banking partial there pays for the trade. (The full exit playbook — including why there is no fixed final target — is Pro-arc material, M09.)

6 — Entry. The bar-close price at signal time. If you are late by more than a little, the RR you would get is no longer the RR on the label — recompute before acting.

The order matters

Tier → RR → levels → your own eyes on the chart. Confirmation with your eyes is not optional and never will be: is price actually at the structure the score implies, right now?

Takeaways

  • Six fields: tier/direction, score, RR, SL, TP1, entry. Read in that order.
  • RR is computed to TP1 and pre-filtered — sub-floor setups never fire.
  • The SL is the thesis line. Late entry = recompute RR before acting.

Checkpoint

Answer all questions correctly to complete the lesson. Misses reset for another pass — no penalty.

1. Entry 75800, TP1 76900, SL 75150. RR ≈

2. Price runs well past entry before you act. The label's RR is:

3. The SL represents: