Use the weekly close to understand direction. Then watch intraday Momentum levels for a potential setup.
Explore the theory ↓Study the combined level sheet first. The market structure image below explains how the weekly close is classified.
APA sets the short-term direction from the weekly close. Momentum helps you watch for an intraday trigger. The weekly view comes first; the intraday setup follows.
Classify a stock or index using its weekly close relative to APA Peak, SPT (COG) and Trough.
Watch the separate intraday Momentum levels for a radar zone and a trigger.
APA uses the Friday weekly close to set the short-term context. Momentum supplies separate intraday alert and activation levels. Always check which system a label belongs to.
For the bullish setup, Friday's close is above APA Peak and below APA UP1.
Intraday low or high in the relevant Peak/SPT or Trough/SPT band gives an alert.
Compare the weekly closing price with APA's three levels. This tells you which side of the market to study.
After a bullish classification, watch whether price holds near COG on a pullback.
After a bearish classification, watch whether price is rejected near COG on an upward move.
A brief move beyond Peak or Trough can fail. In this scenario, compare the candle’s extreme with its close before considering the next levels.
Price moves below the APA Trough during the candle, but closes back above it. This failed breakdown can create a possible recovery toward SPT (COG), and then Peak.
What to watch: the close above Trough and whether subsequent candles hold that boundary. SPT and Peak are potential observation levels, not promised targets.
Price crosses the APA Peak during the candle, but fails to close above it. This failed breakout can create a possible reversal toward SPT (COG), and then Trough.
What to watch: the close below Peak and whether subsequent candles remain beneath that boundary. SPT and Trough are potential observation levels, not promised targets.
Use these outer boundaries to identify a failed break with a clearly defined risk point. Treat SPT as an intermediate level to observe, rather than a new entry signal. Wait for the relevant close and set a risk limit before any trade; a failed break may resume in its original direction.
First confirm the weekly APA classification. Then watch where the intraday low or high forms relative to the APA boundaries. The boundary cross is the trigger; the numbered APA levels become the next levels to observe.
Peak is the decision boundary. The three upside levels are potential targets, not guaranteed moves.
Trough is the decision boundary. The three downside levels are potential targets, not guaranteed moves.
The intraday low or high is an alert, not the entry by itself. Define the invalidation and risk before acting. These diagrams are conceptual and contain no live market levels.
When the weekly close is between APA Peak and APA Trough, treat the stock as being inside the range. Keep the next observation limited to the levels below.
For the downside, focus on APA Peak and APA Trough. Watch for weakness near the upper boundary and use Trough as the lower level to observe.
For the upside, watch a recovery from APA Trough toward APA SPT. In this scenario, SPT is the recovery level to observe.
Both APA and Momentum have Cycle Changer levels. In each system, the upper Cycle Changer is above UP3 and the lower Cycle Changer is below DN3. These are extension areas where a fast move can occur and a reaction may follow.
After UP3, watch the upper Cycle Changer area. A fast upward move into that area can be followed by a possible reversal.
Below DN3, watch the lower Cycle Changer area. A fast downward move into that area can be followed by a possible bounce.
Each has its own UP3, DN3 and Cycle Changer levels. Identify which system's level you are reading before judging the move.
The alert prepares you to watch; the move across the Momentum boundary activates the setup. These are separate events.
The low or high in the Momentum band generates the alert. Crossing Momentum Peak or Trough is the activation. TG1–TG3 are observation levels, not guaranteed results. Define invalidation and risk before trading.
Follow the weekly filter before the intraday trigger. ABC is a hypothetical stock, not a live recommendation.