forked from animatedread/Warrior_EA
9 lines
1.1 KiB
Markdown
9 lines
1.1 KiB
Markdown
 | ### Structural Failure — Section 1.5
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Structural failure detects when price abandons the established structural logic it had been following:
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- **Strength (bullish failure):** Price has been making lower highs and lower lows. On the next leg down, it fails to reach the structure's lower boundary, reversing before getting there. Buyers are blocking the decline aggressively. This does not guarantee an immediate reversal — it may simply be a pause for re-accumulation before continuing lower.
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- **Weakness (bearish failure):** Price has been making higher highs and higher lows. On the next leg up, it fails to reach the structure's upper boundary, reversing before getting there. Sellers are capping the advance aggressively.
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The key insight is that price was expected to continue its previous structural logic (visiting the opposite extreme) but fails to do so. This is an additional trace for evaluating the balance of power, not a standalone trade signal. The LPS and LPSY events are themselves structural failures — price stops short of visiting the shakeout extreme and instead reverses toward breakout.
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