Owl Smart Levels analyzes price movement structure using various tools. However, like any trading system, it cannot consider for all market factors. That is why it is important to filter signals and understand in which conditions their reliability may decrease.
Below you can find several situations where it is better to skip indicator signals.
Entering before news releases
Periods before the release of major economic data are often accompanied by unstable price behavior. The market may change direction sharply, move without clear structure, or produce false moves.
At such moments, market participants focus not on technical analysis, but on ожидание новостей. Because of this, the usual price structure may temporarily break down.
Since Owl Smart Levels is based on price structure analysis, these periods require extra caution from the trader.
Fig. 1. Example of a signal before news release
If a signal appears shortly before important news, it is more reasonable to wait for the market reaction and only then make a trading decision.
Signals at the end of the trading day
Another situation where caution is required is signals that appear close to the end of the trading session. By this time, market activity often declines. Price movement may slow down, and the market can shift into a sideways range.
Even if the structure remains valid, the market may simply not have enough time to fully develop the move.
Fig. 2. Example of a signal at the end of the day
That is why signals appearing late in the day are sometimes better evaluated during the next trading session.
Signal after an established impulse
Sometimes a signal appears after the market has already made a strong directional move. In such cases, a significant part of the trend potential may already be exhausted.
Fig. 3. Example of a late signal
Even if the structure looks valid, the probability of continued movement toward targets may be lower than at the beginning of the impulse. In such situations, it is often better to wait for a new structure or the next signal cycle.
Fractals formed within a single candle
Sometimes fractals form at nearly the same level or on neighboring candles. This often indicates the absence of a proper wave structure in the movement.
Fig. 4. Example of close fractals
When extremes are too close to each other, levels based on them may produce less reliable signals. For this reason, such situations require additional caution when you are making a trading decision.
IMPORTANT!
The examples described above do not mean that such signals will always lead to losses. However, statistically, the probability of successful signal execution is lower under these conditions.
Understanding these situations helps filter out weak signals and focus on higher-quality trading opportunities.
If you want to learn more about the Owl Smart Levels strategy itself and see real examples of how it works, I recommend checking out the following materials:
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