How Alerts Work
Signal Lifecycle, Invalidation & Expiry
Understanding the signal lifecycle is essential for using Trade Flagger effectively. Each signal has a price-position state (pre-entry, in zone, entered, then target progression) and can exit through expiry, cancellation, stop, or completion. This guide walks through the current model end to end.
1. Signal States
States reflect where price sits relative to entry, invalidation, and targets—not a separate “event” pipeline. Use them to see what's actionable (e.g. in the entry zone) vs. still forming (pre-entry), and how far along a trade is after entry.
Pre-entry (no position yet)
Pre-Entry
Setup detected; price between stop and entry zone
In Entry Zone
Price in the entry zone; awaiting 5m candle close to confirm
Entered
A 5m candle closed inside the entry zone (entry latched)
Target progression (after entry)
Post-Entry Runup
Price between entry zone and first target (T1)
In Target 1
Price within the T1 band
Between Targets
Price between T1 upper and T2 lower
In Target 2
Price within the T2 band; completion rule can follow
Signals can exit the lifecycle at any stage:
Completed
T2 achieved or completion rule met (win/partial)
Stopped
Invalidation crossed after entry (loss)
Cancelled
Stop before entry, TTL expiry, regime flip, spread spike, or manual cancel — distinct from a post-entry stop
2. Lifecycle Timeline
Here's a real-world example of how a signal progresses through its lifecycle:
Example: EURUSD Trend Pullback
Setup detected
EURUSD compression at a key level; signal created, price not yet in the entry zone
Price in entry zone
Pullback into the zone; waiting for a 5m candle to close inside the zone to latch entry
Entry latched
5m candle closes inside the entry zone — entry confirmed, notification sent
First target reached
Price trades into the T1 band; state tracks position vs. targets
Second target reached
Price in the T2 band; completion rule can finalize the trade
Trade completed
Terminal state: targets / completion rule satisfied — outcome recorded
Key Insight: Pre-Entry → In Entry Zone → Entered often unfolds within minutes to hours, depending on the market. Entry is latched only when a 5-minute candle closes inside the entry zone (not on a wick alone). You'll get notifications on meaningful state changes, including target progression after entry.
3. Invalidation Rules
The app distinguishes pre-entry vs post-entry invalidation. Before entry is latched, a stop breach ends the signal as Cancelled (no position taken). After entry, crossing invalidation is Stopped (loss). Other exits (TTL, regime flip, manual) can end a signal as Cancelled depending on strategy rules.
What Causes Exit / Invalidation
- Stop before entry— Invalidation hit before 5m close in zone → Cancelled
- Stop after entry— Invalidation crossed after latch → Stopped
- Time / regime— TTL expiry, regime flip, or manual cancel → Cancelled
How to Interpret Invalidation
- Do not chase— The setup is dead, move on
- Learn from it— Sometimes the market shows its hand early
- Wait for reset— A new setup may form later
Invalidation ≠ Failure
An invalidated signal is not a failed prediction—it's the system working correctly. The setup required specific conditions that were violated. This is risk management in action.
4. Expiry Mechanics
Signals don't live forever. If conditions don't materialize within a reasonable timeframe, the signal expires. This prevents stale setups from cluttering your view.
Time-Based Expiry
Intraday signals typically expire after a few hours if entry is not confirmed. The setup loses relevance as market conditions evolve.
Session-Based Expiry
Some signals expire at the end of the trading session (e.g., market close for stocks). Fresh analysis is needed for the next session.
Expiry vs Invalidation
Expiry
- • Time ran out
- • Setup was never tested
- • Neutral outcome
- • Market moved sideways or away
Invalidation
- • Stop hit after entry (Stopped)
- • Setup premise violated post-latch
- • Definitive adverse outcome vs. plan
- • Contrasts with neutral expiry (time ran out)
Pro Tip: If many signals expire without entry being confirmed, conditions may be choppy and setups aren't following through. Consider reducing size or waiting for cleaner structure.
5. Notification Timing
Trade Flagger sends notifications when signals change state. This gives you time to prepare and make informed decisions rather than chasing price.
When Notifications Fire
In-app only
Notifications appear in the header bell and on the Notifications page. Per-symbol toggles live on your watchlist; use Settings → Notifications for the global on/off preference.
Pre-Entry & Zone
Heads-up for a new setup and when price is in or near the entry zone—review before entry is latched.
Entry Confirmed
Entry latched after a 5m close in zone. Review score, plan, and risk before acting.
Target Progression
Updates as price moves toward T1/T2 and between targets—track the trade after entry.
Stopped / Cancelled
Post-entry stop vs. pre-entry or rule-based cancel (TTL, regime, manual). Don't chase—wait for a fresh setup.
End-to-End Example: A Complete Signal Lifecycle
Scenario: BTCUSD Breakout
Volatility squeeze on 5m; price consolidating near $42,000. New-signal notification—setup forming, not yet in zone.
Price tests the entry band around $42,100. Notified that the zone is live; waiting for a 5m candle to close inside it.
A 5m candle closes inside the entry zone. Score: 78. Entry latched—plan risk and execution.
Price reaches the T1 band ($42,700). State shows first target in play.
Price trades into T2 ($43,200). Completion rule can follow from here.
Signal Details at Entry
Outcome: T2 / completion conditions met. Signal moves to Completed in performance tracking. Total time from detection to completion: about 1h 20m.
Key Takeaways
Best Practices
- •Wait for Entered (5m close in zone) before treating the setup as a live position
- •Use Pre-Entry and In Entry Zone alerts to prepare
- •Focus on signals with scores 70+
- •Respect invalidation—never chase cancelled signals
Common Mistakes
- •Acting on Pre-Entry as if already entered
- •Ignoring invalidation and chasing price
- •Trading expired signals that no longer apply
- •Not enabling notifications and missing entry or target updates