The Trade Setup Lifecycle: From Liquidity Swept to Target Hit
Good analysis should not flash BUY or SELL all day. A setup is a process, and the platform shows exactly where it is.
The states
| State | Meaning |
|---|---|
| NO_SETUP | No valid liquidity event |
| WATCHING_LIQUIDITY | Price is near unswept liquidity |
| LIQUIDITY_SWEPT | A sweep just happened |
| WAITING_FOR_DISPLACEMENT | Sweep done; need a strong candle |
| WAITING_FOR_MSS | Need a structure shift |
| WAITING_FOR_FVG | Need a fair value gap |
| WAITING_FOR_RETRACE | Entry planned; price is not there yet |
| SETUP_READY | All conditions confirmed; price is at the entry zone |
| ENTRY_TRIGGERED | Price hit the entry |
| TP1_HIT / TP2_HIT / TARGET_HIT | Milestones and the final target |
| STOPPED_OUT | The stop was hit |
| INVALIDATED | A condition failed, with the reason stored |
| EXPIRED | Time ran out before entry (or the trade timed out) |
What ends a setup
- The sweep level is lost (price closes back beyond it).
- No displacement or MSS within the allowed window.
- The gap is invalidated.
- The stop level is breached before entry.
- Bias turns against the setup.
- A newer sweep supersedes it.
- Maximum age is exceeded.
The exact reason is recorded and appears in your setup history.
Rejected vs invalidated
A rejected setup completed the pattern but failed a gate — bias, premium/discount, target or minimum R:R. An invalidated one broke down earlier.
Why this design
- You always know what is missing.
- Alerts fire once per state change, not on every scan.
- Backtests and live analysis share the same lifecycle, so results are comparable.
See how the checklist looks in reading the condition checklist.
Questions & answers
What does SETUP_READY actually mean?
All required conditions are confirmed and price is within a set distance (default one ATR) of the planned entry. It is a prompt to prepare, not an order.
Can a setup go backwards?
It can move between waiting states as new candles arrive, for example if a gap is invalidated. Once triggered, a setup only moves forward to a result.
How long does a setup last?
Before entry, by default 8 hours from the sweep; after entry, by default 24 hours. Both are editable.
Do invalidated setups disappear?
No. They stay in history with the reason so you can study why they failed.