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PRICE FACTOR / TIME FACTOR / REVERSAL FILTER

Price + Time: A Two-Factor Filter for Reversal Structures

The source does not evaluate reversal structure from price alone. It adds a time component: how long the previous segment formed, how long the reversal side has developed and whether the pattern has matured enough to act on.

9 MIN READMARKET STRUCTUREENGINEERING NOTES

Price overlap is only one condition in the source framework

After defining the minimum price-overlap condition, the lesson adds a second dimension: time. The source compares how long the left structural segment took to form with how much time the right-side reversal structure has spent developing.

Measure duration in candles

The method measures the duration of the prior segment in bars on the working timeframe. In the lesson's example, the left segment contains about 280 candles; the right segment is then compared against that duration.

The source uses a minimum-time filter for entries

Later in the lesson, the author states that he generally avoids entering while the right segment has not reached at least about half the duration of the left segment. This is a discretionary rule from the source rather than a universal market principle.

left_bars = count_bars(left_segment) right_bars = count_bars(right_segment) price_ok = overlap_pct >= 0.90 time_ok = right_bars >= left_bars * time_ratio_min candidate = price_ok and time_ok

Why time changes the interpretation

The source's reasoning is that a large structure that took a long time to develop should not automatically be considered reversed by a very brief right-side movement. Time therefore acts as a filter against reacting too early to an otherwise attractive price pattern.

V-shaped reversals are handled differently

The lesson also recognizes faster V-shaped reversals. In those cases, a period of accumulation after the sharp move is compared with the earlier segment, rather than expecting a perfectly symmetrical shape.

Price and time become two independent gates

For automation, the useful idea is to keep the gates separate. A setup can be PRICE PASS / TIME WAIT, which is much more transparent than collapsing everything into a single opaque buy/sell signal.

PRICE_GATE: PASS TIME_GATE: WAIT STRUCTURE_GATE: PASS EXECUTION: BLOCKED # later TIME_GATE: PASS EXECUTION: ELIGIBLE

Log the reason for waiting

A bot implementing this framework should publish the left-segment bar count, right-segment bar count, overlap percentage and current gate states. That makes the decision auditable and fits naturally with the monitoring architecture already used across FX Nova Bot.

Important: This article adapts the supplied educational material into engineering-oriented notes. The rules described are the source author's framework, not universal market laws or a guarantee of trading results.
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