Editing Component:Signal Generation (section)

== Gate Filters ==

=== Gate 1: Grade Filter ===

Only high-quality setups are traded:

{| class="wikitable"
|-
! Grade !! Action
|-
| A+, A, B || PASS → Generate signal
|-
| C, D, F || BLOCKED → No signal generated
|}

=== Gate 2: Hour Filter ===

Block historically loss-making hours:

<pre>
Blocked Hours: [9, 22, 23]  // 9 AM, 10 PM, 11 PM IST

IF current_hour IN blocked_hours:
    RETURN None  // No signal
</pre>

=== Gate 3: Direction Determination ===

Direction is determined by MA21 slope with 1H → 15m fallback:

<pre>
trend_direction = market_state.trend_direction

IF trend_direction == "up":
    direction = LONG    // MA21 rising → trade long

ELIF trend_direction == "down":
    direction = SHORT   // MA21 declining → trade short

ELSE:
    // MA21 flat/unclear → use MTF fallback
    IF mtf_direction == "up":
        direction = LONG
    ELIF mtf_direction == "down":
        direction = SHORT
    ELSE:
        // TICKET-22: 1H → 15m fallback (matches TimeframeSettings)
        // Config: primary=1H, confirmation=15m, wait_for_15min_alignment=True

        one_hour_dir = timeframe_results['1h'].direction
        fifteen_min_dir = timeframe_results['15m'].direction

        // Priority 1: 1H + 15m agreement (strongest)
        IF one_hour_dir == fifteen_min_dir AND one_hour_dir IN ['up', 'down']:
            direction = LONG if one_hour_dir == 'up' else SHORT

        // Priority 2: 1H only (primary_timeframe)
        ELIF one_hour_dir IN ['up', 'down']:
            direction = LONG if one_hour_dir == 'up' else SHORT

        // Priority 3: 15m only (confirmation_timeframe)
        ELIF fifteen_min_dir IN ['up', 'down']:
            direction = LONG if fifteen_min_dir == 'up' else SHORT

        ELSE:
            RETURN None  // ALL timeframes sideways → true consolidation
</pre>

'''Direction Hierarchy:'''
# MA21 slope (5min) – primary
# MTF primary_direction – first fallback
# 1H + 15m agreement – strongest MTF signal
# 1H only – primary_timeframe fallback
# 15m only – confirmation_timeframe fallback
# None – only if all sideways (true consolidation)

=== Gate 4: Probability Zone Filter ===

Filters trades based on price position within range:

{| class="wikitable"
|-
! Zone !! LONG !! SHORT !! Logic
|-
| Top Third || Blocked || Allowed || 80% continuation down, 15% up
|-
| Middle Half || Allowed || Allowed || Neutral zone
|-
| Bottom Third || Allowed || Blocked || 80% continuation up, 15% down
|}

'''Sideways Market Exception:''' In creeper/consolidation, uses mean reversion (opposite logic).

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