Construct one playbook that flips with session regime

Write one playbook, then let it flip

Editorial view: do not keep a trend playbook and a range playbook side by side. Write one entry and exit playbook whose direction, profit taking, and size change after the session is classified.

The archive construction is written to force buying dips and selling rallies at momentum extremes and to require a divergence between momentum and price. The remaining rules decide when that habit is allowed, in which direction, and how quickly it is taken off.

Classify the session first

When the average directional index is above 30, the framework restricts trades to the direction of the prevailing trend. Editorial view: the playbook can still wait for a dip or a rally, but it does not fade the session.

When the average directional index is declining below 30, the framework treats the session as a range-bound regime. It defines daily support and resistance, locates buys at support, and locates sells at resistance.

Locate the setup at a momentum extreme

A buy-side setup is specified when the slow stochastic records a session low while the market does not record a new session low. A sell-side setup is specified when the slow stochastic records a session high while the market does not record a new session high.

That pairing is the price-indicator-divergence test. The oscillator prints a new momentum extreme. Price does not print a matching session extreme. Without that split, the construction does not specify a setup.

Let breadth and a trigger grant permission

Strong positive breadth is treated as a facilitating condition for buy setups, and strong negative breadth for sell setups. Marginal breadth is treated as a reason to stand aside on a consolidating day.

A swing in breadth from one extreme to the other is treated as confirmation of a larger move in the direction of that reversal. Editorial view: read that swing as confirmation, not as a substitute for the divergence setup.

Listed timing triggers include a prior 10-minute low and a break of a 20-period moving average, as well as an oscillator extreme that then fails and is managed with a standard stop. The trigger converts a specified setup into an executable entry. It does not replace the session classification or the divergence test.

Change exits and size when the session is a range

In a range-bound session the construction takes profits more quickly as the slow stochastic reaches the opposite extreme and sizes activity to 60 percent of trending-session volume. The dip-and-rally habit remains in force. The playbook simply exits sooner and participates with less size.