Targets & magnets Both
Gap-close magnet
Price moving toward the prior close. Pressure favors a gap test while countertrend interest waits.
Read the sequence.
01 / OBSERVE → DECIDE
- ContextPrice moving toward the prior close
- PressurePressure favors a gap test while countertrend interest waits
- SetupPrice moving toward the prior close. Require rejection or acceptance at the marked structure.
- DecisionA valid setup in the direction of the gap-close magnet
The decision map
02 / QUICK REFERENCE- Location
- Price moving toward the prior close.
- Evidence
- Pressure favors a gap test while countertrend interest waits.
- Trigger
- A valid setup in the direction of the gap-close magnet.
- Invalidation
- Failure of the supporting swing structure.
- First objective
- Prior close.
- Pass when
- Expecting movement through the magnet without reassessment.
03 / THE FULL ARGUMENT
Thesis & participant logic
Supplied study draft · adapted Brooks-style prose, not a quotation from Al Brooks
Price has entered a vacuum toward the prior close. Countertrend traders may delay entry until the gap is tested. I will trade toward the gap only while pressure and reward remain favorable. At the magnet, I will take profits or reassess; I will not automatically reverse without evidence of rejection.
04 / FROM IDEA TO A PLAN
Manage the thesis, not the need to be right.
Before entry
Write the structural invalidation and first realistic objective. Size to the loss you have already accepted, including costs and possible slippage. If the stop is unaffordable, reduce size or pass.
After entry
Reassess follow-through against the evidence above. Do not widen the stop or add because price “has gone too far.” A bounce to your average entry is not a market thesis.
At the objective
Prior close. Decide ahead of time whether to exit or retain a defined remainder. Continue only while structure and follow-through support the trade.
During review
Record the entry-time chart, planned risk, maximum adverse excursion, actual exit, and whether the thesis was invalidated. Judge the decision separately from the outcome.