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Three observations have aligned: the current close sits outside the 20-week price channel, current-week volume is well above the 30-week average, and the ADX obs (sustained directional-movement asymmetry) is in the upper portion of its mapped range.
State
Close sits outside the recent 20-week price channel, current-week volume is well above the 30-week baseline, and the ADX directional-movement asymmetry is elevated
Emergence
Three present-state observations align. The current close sits outside the price channel formed by the highest high and lowest low over the recent 20-week window (typeKey 'price-channel-breakout'). Current-week volume is well above the 30-week baseline (typeKey 'volume-spike'). The ADX (now named 'Sustained Directional-Movement Asymmetry', typeKey 'adx-standard') is elevated. The three readings describe a present-state co-occurrence of a close outside the recent channel with elevated volume and elevated directional-movement asymmetry.
Limits
This interpretation records three present-state observations. It does not predict continuation, guarantee direction, or claim the position outside the channel will persist. The channel-position obs records only the present-state location (close outside the prior channel); it does not measure follow-through. Closes outside the channel routinely return inside it; the obs do not measure failure rates. The formula records position relative to the channel, not a direction-confirming event.
Explanation
Each observation reads a different aspect of recent price-and-volume behavior: Price Outside Recent High-Low Channel fires when the current close sits outside a recent price channel formed by the highest high and lowest low over the lookback. The obs records the present-state position; it does not predict whether the close will remain outside the channel. Volume Spike is current-week volume divided by the 30-week average volume. A high score means current-week volume is well above the 30-week baseline. Sustained Directional-Movement Asymmetry (ADX) measures how persistently directional movement has favored one side over the lookback window. A high score means the asymmetry has been sustained. When all three align, the configuration is a present-state co-occurrence of a close outside the recent channel with elevated volume and elevated directional-movement asymmetry — a description of what has happened, not a continuation prediction.
Interpretation
This interpretation identifies a co-occurrence of three present-state observations. It does not predict how far any move extends, guarantee direction, or indicate timing. Channel breakouts can fail and price can return to the channel.
Required Observations
Adx Standard
Smoothed asymmetry between positive and negative directional movement, direction-agnostic
Price Channel Breakout
Percentage displacement of price beyond high-low channel boundaries
Volume Spike
Current period volume relative to historical average volume