Overview
The Structure agent implements the P1/P2 framework, a method for determining directional bias from the temporal order of price extremes within a time period. This is not traditional “market structure” (higher highs, higher lows). It is a specific, rule-based system with 7 governing laws. The core question is simple: within any given period, which extreme formed first?Core Concept
In every time period (hour, day, week), the market forms a high and a low. The P1/P2 system identifies which extreme formed first using sub-period candles:- P1 = the extreme that formed first in the period
- P2 = the extreme that formed second in the period
- Bullish Structure
- Bearish Structure
The low formed first and the high formed second.P1 is the low. P2 is the high. The market moved upward during this period.The bias is bullish because the market’s natural path during this period was from low to high.
How Temporal Order Is Determined
The agent uses sub-period candles to determine which extreme formed first:| Analysis Timeframe | Sub-Period Candles Used |
|---|---|
| Weekly | 4-hour candles (~42 per week) |
| Daily | 1-hour candles (24 per day) |
| 4-hour | 15-minute candles (16 per period) |
| 1-hour | 5-minute candles (12 per period) |
The 7 Laws
The P1/P2 system follows 7 deterministic laws:| Law | Name | Rule |
|---|---|---|
| 1 | Existence | Every period has a P1 (first extreme) and a P2 (second extreme) |
| 2 | Temporal Order | Which extreme formed first determines the directional bias |
| 3 | Immutability | P1 does not change within the same system — once the first extreme is established, it holds |
| 4 | Flexibility | P2 can extend while P1 holds (e.g., the market can make new highs while the day’s low remains intact) |
| 5 | Reset | When P1 is broken (price moves beyond it), the old P2 becomes the new P1, and the bias inverts |
| 6 | Directional Bias | P1 = low implies bullish bias; P1 = high implies bearish bias |
| 7 | Fractal Coherence | The same rules apply identically on every timeframe (1H, 4H, Daily, Weekly) |
Five Intents
1. Current State
Shows the current P1/P2 levels and directional bias on daily and weekly timeframes. What it returns:- P1 and P2 price levels for today and this week
- Bias direction (bullish or bearish) for each timeframe
- Alignment status (do daily and weekly agree?)
- Flip risk assessment for the daily timeframe
- Candlestick chart with P1/P2 reference lines
- “What’s the P1/P2 for BTC daily?”
- “Is BTC bullish today?”
- “What’s the current structure for ETH?“
2. Time Analysis
When do P1 and P2 typically form within a period? What it returns:- Distribution of P1 formation times (e.g., what percentage of daily P1 levels form in the first 4 hours vs. the last 4 hours)
- Bar chart showing P1 formation time distribution
- “When does P1 typically form for BTC on the daily?”
- “P1 time distribution”
- “When does the daily low usually form?“
3. Distance Analysis
How far does price typically move from the open to P1 and P2? What it returns:- Confidence targets at 90%, 80%, 70%, 60%, 50%, and 40% probability levels
- Separate targets for bullish and bearish bias periods
- Based on the current bias direction, shows the most relevant targets
- “What’s the typical P1 target for BTC?”
- “P1/P2 confidence targets”
- “How far does the daily low usually form from the open?“
4. Summary
A comprehensive structure report combining current state, flip risk, P2 probability, and distance targets. What it returns:- Everything from Current State
- Distance targets for the current bias direction
- Full flip risk analysis
- Historical P1/P2 statistics
- “Give me a BTC structure summary”
- “Full P1/P2 report”
- “BTC structure report”
5. Fractal Analysis
Multi-timeframe alignment across H1, H4, Daily, and Weekly. What it returns:- P1/P2 and bias for all four timeframes
- Alignment status: are all timeframes pointing in the same direction?
- Candlestick chart with daily P1/P2 levels
- “Is BTC structure aligned across timeframes?”
- “Fractal analysis for ETH”
- “Multi-timeframe P1/P2 alignment”
Flip Risk
The agent calculates how likely the current structure is to flip (P1 gets broken, bias inverts). This is one of the most important outputs. For BTC on the daily timeframe, flip risk is historically high (~84%). This means:- The daily P1/P2 bias reverses most days
- Daily structure alone is an unreliable directional signal
- Confirmation is essential before acting on daily P1/P2
- Weekly timeframe alignment (fractal analysis)
- More time elapsed in the current structure without a flip
- Greater distance from the P1 extreme (price has moved significantly in the bias direction)
Practical Usage
When is P1/P2 most useful?
When is P1/P2 most useful?
On the weekly timeframe, where structures are more persistent and flip risk is lower. The daily timeframe provides real-time context, but the weekly sets the dominant bias.
How should I handle high flip risk?
How should I handle high flip risk?
Use the fractal intent to check multi-timeframe alignment. When daily, 4H, and weekly all agree, the signal is substantially more reliable than any single timeframe. Also check time and distance analysis — P1/P2 structures that have survived for longer and moved further from the initial extreme are more likely to persist.
How is this different from the Technical agent?
How is this different from the Technical agent?
Technical uses lagging indicators (RSI, MACD, SMA) to describe the current state. Structure uses temporal order of extremes to determine directional bias. They answer different questions and work well together. Ask “What’s the BTC structure and technical setup?” to get both.
How is this different from the Quantitative agent?
How is this different from the Quantitative agent?
Quantitative computes neutral statistics (distributions, seasonality, regimes). Structure produces a directional bias (bullish or bearish). They are intentionally kept separate to avoid contaminating neutral statistical analysis with directional assumptions.