Module 16 — Practical Foundation Examples

Two worked examples showing the foundation process, without proprietary execution rules.

Example one — a level that qualified

Daily structure shows an external support boundary that previously produced a strong rally. Price returns during the London session, overshoots the area, then closes back inside it on M15 with follow-through from buyers. The stop is placed beyond the overshoot, size is calculated from that distance, and the first target is the internal level that ended the previous leg.

Example two — a level that did not qualify

Price approaches a resistance area ten minutes before a US inflation release. There is no confirmation, the spread is widening, and the higher timeframe trend is upward. Under the conservative methodology, no trade is taken. Declining this trade is the correct outcome, not a missed one.