What it shows
Two cells in the header, one for the long side and one for the short, each reading Edge, Neutral, or Extended:
- Edge: a long (or short) entered here would be close to value and supportive structure. A supported location for that side.
- Extended: a long (or short) entered here would be far from value and supportive structure. A stretched location.
- Neutral: a two-sided auction, where neither side holds a location advantage right now.
It reads the newest session with live data, and it is off on the composite view.
Location, not a signal
This is the part to hold on to. The Compass rates the *location* for a side, how close it sits to value and structure, not whether the trade is a good idea. A long can read "Edge," a supported location, in a market you have every reason not to buy. It never tells you to enter; it describes where price is. The class explanations are written that way on purpose.
Think of it like a real compass. It tells you which way is north, south, east, and west, but not which way you need to go. It is context to sharpen your own decision, not the decision itself.
During a trend
While the market is trending, the counter-trend side reads Neutral even when its location looks stretched, because trends run further than they look like they can. So the Compass will not flatter a fade into a strong trend. It frees the counter-trend side again only once the run ceases.
What goes into it
Behind each class is a blend of location factors, computed the same way for both sides: where price sits versus today's and yesterday's value, its place in the balance area, how far the day has extended beyond the first hour, nearby confluence and magnets, alignment with the larger-timeframe move, and the time of day. Open the factor card (press Cmd-K, then Compass) to see the full breakdown behind a read.
How to use it
Take the Compass as a quick, impersonal read of location, the same for every user: it flags when a side would be entering near value versus stretched away from it. Pair it with the day's state and the rest of the reading layer. It is one input on where price is, not a call on what to do.