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: