PrecisionAlgoGuard v1.4

Context before Signals — that is the reason PrecisionAlgoGuard v1.4 exists.

PrecisionAlgoGuard v1.4 is a real-time market quality and trap detection engine that answers one question before every trade: are conditions safe to trade right now? Most indicators tell you where to enter. PrecisionAlgoGuard tells you whether you should be trading at all — and if so, which direction the environment favors.

Every trader has been there — you take what looks like a perfect setup and it immediately goes against you. The pattern was right, your entry was clean, but something felt off about the way price was moving. The problem is rarely the signal. The problem is the environment. Most losses come from trading in conditions that were never going to let your setup work — choppy, manipulated, or simply dead tape. PrecisionAlgoGuard was built to help solve that. Before you take any trade, it tells you one thing: should you even be trading right now? And if so, does the environment favor longs or shorts? Knowing when to sit out is just as valuable as knowing when to get in. This is the tool that helps keep you on the right side of that decision.

HOW IT WORKS

PrecisionAlgoGuard builds a composite Market Quality Score (0–100) by analyzing bar-level price behavior in real time. The score combines normalized range expansion, volume thrust, and a penalty system that detects specific manipulation patterns and low-quality conditions.

The score drives three primary states:

OK (green) — Conditions are clean and tradeable. When directional confluence is present, the label specifies OK LONG or OK SHORT.
CAUTION (yellow) — Conditions are degrading. Reduced position sizing or sitting out is appropriate.
NO TRADE (orange) — Active trap patterns detected or score has collapsed. Stay flat.

WHAT IT DETECTS

PrecisionAlgoGuard identifies six distinct market conditions that degrade trade quality:

VWAP Pinning — Price is compressing around VWAP with narrowing range, indicating institutional positioning or indecision.
Wick Traps — Disproportionate wick-to-body ratios signaling rejection and stop-hunting behavior.
Fake Breakouts — Price breaks a recent high but fails to hold, closing back under the prior level.
Absorption — High volume with minimal price movement, suggesting large orders are absorbing directional flow.
Churn / Wash — Elevated volume with no net price progress over multiple bars, indicating distribution or accumulation disguised as activity.
Low Volatility — ATR has compressed below historical norms, meaning moves lack the energy to follow through.

Each detection appears as a labeled alert next to the score, so you can see exactly what triggered the warning.

DIRECTIONAL BIAS

When conditions are in the OK state, PrecisionAlgoGuard evaluates four microstructure factors to determine if the environment favors longs or shorts:

Price position relative to VWAP
Smoothed close location within bar ranges
Recent bar momentum direction
Price relative to short-term EMA

When two or more factors align in one direction, the label displays OK LONG or OK SHORT. The Bull and Bear factor counts are displayed alongside so you can gauge conviction strength. Bull:4 Bear:0 represents maximum directional confluence; Bull:2 Bear:1 is a weaker lean.

This is not a buy/sell signal — it is a directional context filter. It tells you which side of the market the microstructure currently supports, so you can align your entries with the path of least resistance.

AUTO-DETECT MODE

PrecisionAlgoGuard automatically identifies the instrument type and adjusts all detection thresholds accordingly. No manual configuration required. Load any chart and PrecisionAlgoGuard configures itself.


EXAMPLE: CMCL 5-Minute Replay (Screenshots)

The following sequence shows PrecisionAlgoGuard tracking Caledonia Mining (CMCL) through a full trading session. PrecisionCombo is loaded on the price chart above for visual context.



Score: 81 | OK LONG | Bull:3 Bear:0
Premarket breakout is underway. AlgoGuard score is 81 with three bullish factors aligned. Conditions are clean and favor the long side. The BO on the price chart confirms the move — this is a green light.



Score: 40 | NO TRADE | FAKE BREAKOUT | Bull:4 Bear:0
Price pushes higher but AlgoGuard drops to 40 and flags a fake breakout. Despite all four directional factors reading bullish, the NO TRADE state overrides — conditions are not safe regardless of direction. The right move is to wait.



Score: 27 | NO TRADE | WICK TRAP + FAKE BREAKOUT | Bull:3 Bear:0
Conditions deteriorate further. Score collapses to 27 with two trap patterns stacking — wick trap and fake breakout detected simultaneously. This is exactly the kind of environment that eats traders alive. AlgoGuard is saying stay flat, period.



Score: 76 | OK SHORT | Bull:1 Bear:2
Conditions have cleaned up — score recovers to 76 — but the directional bias has flipped. OK SHORT with Bear:2 tells you the microstructure now favors the short side. The yellow fast exit arrow on the price chart aligns with this read.



Score: 52 | CAUTION | LOW VOLATILITY | Bull:1 Bear:1
Energy is fading. Score sits at 52 with low volatility detected. Bull and Bear counts are even — no directional edge. The price chart shows choppy, directionless action. AlgoGuard is telling you there's nothing worth trading here.



Score: 45 | CAUTION | WICK TRAP | Bull:1 Bear:2
Still degraded. Wick traps are appearing as price grinds lower. Bear:2 leans short but the CAUTION state means conditions aren't clean enough for high-conviction trades. Reduced size or sitting out is the move.

HOW TO USE IT

PrecisionAlgoGuard is designed as a context filter, not a standalone signal generator. Use it alongside your preferred entry method to validate trade quality before committing capital. In the screenshots above, PrecisionCombo was used as chart context.

Green score + OK LONG/SHORT — Conditions support taking trades in the indicated direction.
Yellow score + CAUTION — Reduce size or wait for conditions to improve.
Red/Orange score + NO TRADE — Stay flat. Active trap patterns are present.
Bull/Bear counts — Gauge directional conviction. Higher counts mean stronger microstructure alignment.

Alert conditions are included for all state changes and trap detections.

DISCLAIMER

PrecisionAlgoGuard is a technical analysis tool designed to assist with evaluating market conditions. It is not financial advice and does not constitute a recommendation to buy, sell, or hold any security. No indicator can predict future price movement with certainty. All trading involves risk, including the potential loss of principal. Past performance of any indicator, system, or methodology is not necessarily indicative of future results. Users are solely responsible for their own trading decisions. Always conduct your own analysis and consult with a qualified financial professional before making investment decisions. By using this script, you acknowledge that Precision Trading Tools LLC is not liable for any trading losses incurred.

Precision Trading Tools LLC