Add blue-sky projected targets and played-out setup UX

Fixes stale below-price setups showing as current recommendations. Three
distinct causes share the symptom (get_trade_setups returns the latest stored
setup per direction and never expires it):

- Genuine blue-sky (no overhead S/R): scanner + TargetGenerator now project a
  measured-move target (entry +/- 3*ATR, ~2:1 R:R), flagged projected with a
  low sr_strength probability haircut. Overhead check keys on level tag OR price
  so it never projects through a straddling resistance cluster.
- Projected targets clear a stricter activation bar (long-only, momentum >= 90,
  confidence >= min+10), independent of the general momentum gate. Mirrored in
  frontend qualification.ts.
- Played-out UX (fixes the reported TTWO case, which is R:R-starved under a
  resistance cluster, not blue-sky): when price is at/past target or through the
  stop, RecommendationPanel shows a "No current setup" state and softens the
  stale ticker-level header/reasoning, instead of a stale actionable card.

No migration: the projected flag rides in existing targets_json. 504 backend
unit tests pass; frontend typechecks.

Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>

app/services/qualification.py

@@ -16,6 +16,15 @@ from typing import Any
 
 HIGH_CONVICTION_ACTIONS = {"LONG_HIGH", "SHORT_HIGH"}
 
+# A projected (blue-sky) target has no S/R validation — it is a measured-move
+# extension used when nothing sits overhead. Because that is exactly the kind of
+# unvalidated target the gate exists to distrust, a projected setup clears a
+# STRICTER bar than an S/R-anchored one, regardless of whether the general
+# momentum gate is active: long-only (breakout continuation), strong residual
+# momentum, and a higher confidence floor. Mirrored in frontend/src/lib/qualification.ts.
+PROJECTED_MIN_MOMENTUM_PERCENTILE = 90.0
+PROJECTED_CONFIDENCE_MARGIN = 10.0
+
 
 def _action_direction(action: str | None) -> str:
     if not action or action == "NEUTRAL":
@@ -46,6 +55,19 @@ def primary_target_probability(setup: Any) -> float | None:
     return best if best > 0 else None
 
 
+def primary_target_is_projected(setup: Any) -> bool:
+    """Whether the setup's headline target is a blue-sky measured-move projection.
+
+    Prefers the starred primary; falls back to any projected target when none is
+    explicitly flagged primary (matches primary_target_probability's fallback).
+    """
+    targets = getattr(setup, "targets", None) or []
+    for target in targets:
+        if isinstance(target, dict) and target.get("is_primary"):
+            return bool(target.get("projected"))
+    return any(isinstance(t, dict) and t.get("projected") for t in targets)
+
+
 def live_risk_reward(setup: Any, current_price: float) -> float | None:
     """R:R recomputed from the CURRENT price, not the (possibly stale) entry.
 
@@ -102,6 +124,18 @@ def setup_qualifies(setup: Any, config: dict) -> bool:
         momentum_percentile = getattr(setup, "momentum_percentile", None)
         if momentum_percentile is None or momentum_percentile < min_pct:
             return False
+    # Projected (blue-sky) targets clear a stricter bar than S/R-anchored ones,
+    # independent of the general momentum gate above: long-only, strong residual
+    # momentum, and a higher confidence floor. The target has no S/R validation,
+    # so we only trust it for high-momentum breakout continuations.
+    if primary_target_is_projected(setup):
+        if (getattr(setup, "direction", "long") or "long").lower() != "long":
+            return False
+        momentum_percentile = getattr(setup, "momentum_percentile", None)
+        if momentum_percentile is None or momentum_percentile < PROJECTED_MIN_MOMENTUM_PERCENTILE:
+            return False
+        if (setup.confidence_score or 0.0) < config["min_confidence"] + PROJECTED_CONFIDENCE_MARGIN:
+            return False
     # A setup is actionable only when the live ticker action points in the same
     # direction. NEUTRAL means no clear signal; an opposite action means the
     # setup is counter-bias. ``exclude_neutral`` defaults on; callers that omit

app/services/recommendation_service.py

@@ -44,6 +44,16 @@ _MODERATE_MAX_ATR = 4.6
 # the same tolerance the chart and alerts use, so S/R is one model app-wide.
 _SR_ZONE_TOLERANCE = 0.02
 
+# Measured-move projection used when a ticker has NO S/R level overhead in the
+# trade direction (genuine blue-sky, e.g. a stock at all-time highs). Without
+# this the scanner produces no setup and the last (now stale) one lingers. The
+# projected target sits this many ATRs from entry, so with the default 1.5-ATR
+# stop it is a clean 2:1 R:R. Projected targets carry no touch history, so they
+# take near-zero strength (small probability haircut via the strength magnet) and
+# face a stricter activation bar — see app/services/qualification.py.
+PROJECTED_TARGET_ATR_MULTIPLE = 3.0
+PROJECTED_TARGET_STRENGTH = 10.0
+
 
 def _clamp(value: float, low: float, high: float) -> float:
     return max(low, min(high, value))
@@ -310,7 +320,43 @@ class TargetGenerator:
             )
 
         if not candidates:
+            # No S/R level in the trade direction cleared the ATR distance
+            # filter. If there is genuinely NO S/R overhead at all (blue-sky,
+            # e.g. all-time highs), project a measured-move target so a breakout
+            # name still yields a setup. When overhead S/R DOES exist but was
+            # merely too close/far to qualify, produce nothing as before — we
+            # never project a target through real, nearby resistance.
+            #
+            # Check both the level's tag AND its price. Zone representatives are
+            # typed relative to entry, so a resistance cluster straddling entry
+            # counts as overhead even if its near edge sits just below (which
+            # keeps this aligned with the scanner's raw ``levels_above`` gate);
+            # the price comparison covers raw levels for other callers.
+            has_overhead = any(
+                (direction == "long" and (lv.type == "resistance" or lv.price_level > entry_price))
+                or (direction == "short" and (lv.type == "support" or lv.price_level < entry_price))
+                for lv in sr_levels
+            )
+            if has_overhead:
                 return []
+            projected_price = (
+                entry_price + PROJECTED_TARGET_ATR_MULTIPLE * atr_value
+                if direction == "long"
+                else entry_price - PROJECTED_TARGET_ATR_MULTIPLE * atr_value
+            )
+            reward = abs(projected_price - entry_price)
+            return [
+                {
+                    "price": float(projected_price),
+                    "distance_from_entry": float(reward),
+                    "distance_atr_multiple": float(reward / atr_value),
+                    "rr_ratio": float(reward / risk),
+                    "classification": "Moderate",
+                    "sr_level_id": -1,
+                    "sr_strength": float(PROJECTED_TARGET_STRENGTH),
+                    "projected": True,
+                }
+            ]
 
         # Select up to 5 targets that SPAN the distance range, instead of the
         # top-5 by quality (which biases toward far, high-R:R levels and buries
@@ -450,9 +496,11 @@ def _choose_recommended_action(
     """Pick the ticker action — but only recommend a direction you can trade.
 
     A direction is recommendable only if a tradeable setup exists for it
-    (``available_directions``). So a strong LONG bias on a stock at all-time
+    (``available_directions``). A strong LONG bias on a stock with no tradeable
-    highs — where the scanner can build no long target — does NOT yield
+    long setup does NOT yield LONG_HIGH; it falls through to NEUTRAL, and the
-    LONG_HIGH; it falls through to NEUTRAL, and the reasoning explains why.
+    reasoning explains why. (At genuine all-time highs the scanner now projects a
+    measured-move long target, so blue-sky names can be recommendable; a name
+    capped just under resistance — with no ≥threshold R:R — still cannot.)
     """
     high = float(config.get("recommendation_high_confidence_threshold", 70.0))
     moderate = float(config.get("recommendation_moderate_confidence_threshold", 50.0))
@@ -658,7 +706,14 @@ async def enhance_trade_setup(
 
     # Per-setup conflicts (target availability is specific to this setup)
     setup_conflicts = list(conflicts)
-    if len(targets) < 3:
+    primary_projected = bool(primary is not None and primary.get("projected"))
+    if primary_projected:
+        # Blue-sky: no overhead S/R to anchor to. Flag it so the target's basis
+        # is explicit rather than looking like a normal S/R level.
+        setup_conflicts.append(
+            "projected-target: No overhead resistance — target is an ATR measured-move projection"
+        )
+    elif len(targets) < 3:
         setup_conflicts.append("target-availability: Fewer than 3 valid S/R targets available")
 
     # Action and reasoning are ticker-level: they consider both directions and

app/services/rr_scanner_service.py

@@ -29,6 +29,7 @@ from app.models.trade_setup import TradeSetup
 from app.services.indicator_service import _extract_ohlcv, compute_atr
 from app.services.price_service import query_ohlcv
 from app.services.recommendation_service import (
+    PROJECTED_TARGET_ATR_MULTIPLE,
     _risk_level_from_conflicts,
     build_recommendation_snapshot,
     enhance_trade_setup,
@@ -67,6 +68,16 @@ def _compute_quality_score(
     return w_rr * norm_rr + w_strength * norm_strength + w_proximity * norm_proximity
 
 
+def _projected_target(direction: str, entry_price: float, atr_value: float) -> float:
+    """Measured-move target for a blue-sky direction (no overhead S/R).
+
+    Mirrors the projection in recommendation_service so the scanner's emission
+    decision and the enhanced target agree.
+    """
+    move = PROJECTED_TARGET_ATR_MULTIPLE * atr_value
+    return entry_price + move if direction == "long" else entry_price - move
+
+
 async def _get_dimension_scores(db: AsyncSession, ticker_id: int) -> dict[str, float]:
     result = await db.execute(
         select(DimensionScore).where(DimensionScore.ticker_id == ticker_id)
@@ -428,13 +439,13 @@ async def scan_ticker(
     now = datetime.now(timezone.utc)
     setups: list[TradeSetup] = []
 
-    if levels_above:
     stop = entry_price - (atr_value * atr_multiplier)
     risk = entry_price - stop
     if risk > 0:
-            best_quality = 0.0
         best_candidate_rr = 0.0
         best_candidate_target = 0.0
+        if levels_above:
+            best_quality = 0.0
             for lv in levels_above:
                 reward = lv.price_level - entry_price
                 if reward <= 0:
@@ -448,6 +459,14 @@ async def scan_ticker(
                     best_quality = quality
                     best_candidate_rr = rr
                     best_candidate_target = lv.price_level
+        else:
+            # Blue-sky: no resistance overhead. Project a measured-move target so
+            # a breakout name still yields a setup (it faces a stricter gate).
+            projected = _projected_target("long", entry_price, atr_value)
+            projected_rr = (projected - entry_price) / risk
+            if projected_rr >= rr_threshold:
+                best_candidate_rr = projected_rr
+                best_candidate_target = projected
 
         if best_candidate_rr > 0:
             setups.append(TradeSetup(

frontend/src/components/ticker/RecommendationPanel.tsx

@@ -49,6 +49,21 @@ function entryDrift(setup: TradeSetup, currentPrice?: number) {
   return { pct, progressPct, towardTarget, status };
 }
 
+/**
+ * A stored setup is the latest for its direction. When price has run to/past the
+ * target (played out) or through the stop (invalidated), there is no fresh setup
+ * — the card and the ticker-level header should say so rather than present a
+ * stale actionable recommendation. Returns null when there's no live price.
+ */
+function notActionableState(setup: TradeSetup, currentPrice?: number) {
+  if (currentPrice == null) return null;
+  const drift = entryDrift(setup, currentPrice);
+  const playedOut = setup.direction === 'long' ? currentPrice >= setup.target : currentPrice <= setup.target;
+  const invalidated = drift?.status === 'invalidated';
+  if (!playedOut && !invalidated) return null;
+  return { playedOut, invalidated };
+}
+
 function riskClass(risk: TradeSetup['risk_level']) {
   if (risk === 'Low') return 'text-emerald-400';
   if (risk === 'Medium') return 'text-amber-400';
@@ -88,6 +103,7 @@ function TargetTable({ setup }: { setup: TradeSetup }) {
               <td className="py-2 pr-3 text-gray-300">
                 {target.is_primary && <span className="mr-1 text-blue-300">★</span>}
                 {target.classification}
+                {target.projected && <span className="ml-1 text-sky-400">(projected)</span>}
               </td>
               <td className="py-2 pr-3 font-mono text-gray-200">{formatPrice(target.price)}</td>
               <td className="py-2 pr-3 font-mono text-gray-200">{formatPercent((target.distance_from_entry / setup.entry_price) * 100)}</td>
@@ -114,6 +130,14 @@ function SetupCard({ setup, action, currentPrice, risk, regime }: { setup?: Trad
   const drift = entryDrift(setup, currentPrice);
   const sizing = positionSize(risk.accountSize, risk.riskPct, setup.entry_price, setup.stop_loss);
   const counterTrend = regime ? isCounterTrend(setup.direction, regime.label) : false;
+  const primaryProjected = setup.targets?.some((t) => t.is_primary && t.projected) ?? false;
+
+  // When price has run to/past the target (played out) or through the stop
+  // (invalidated), there is no fresh setup — show a plain "no current setup"
+  // state instead of an actionable card with no reward left.
+  const inactive = notActionableState(setup, currentPrice);
+  const invalidated = inactive?.invalidated ?? false;
+  const notActionable = inactive != null;
 
   const createTrade = useCreatePaperTrade();
   const [taking, setTaking] = useState(false);
@@ -134,6 +158,30 @@ function SetupCard({ setup, action, currentPrice, risk, regime }: { setup?: Trad
     );
   };
 
+  if (notActionable) {
+    const dir = setup.direction.toUpperCase();
+    return (
+      <div data-direction={setup.direction} className="glass-sm p-4 space-y-2">
+        <div className="flex items-center justify-between">
+          <h4 className={`text-sm font-semibold ${setup.direction === 'long' ? 'text-emerald-400' : 'text-red-400'}`}>
+            {dir}
+          </h4>
+          <span className="text-[10px] uppercase tracking-wider text-gray-500">No current setup</span>
+        </div>
+        <p className="text-[11px] text-gray-400">
+          {invalidated
+            ? `The last ${dir} setup is invalidated — price (${formatPrice(currentPrice!)}) has passed the stop (${formatPrice(setup.stop_loss)}). No fresh ${dir} setup right now; the scanner surfaces a new one when it forms.`
+            : `The last ${dir} setup has played out — price (${formatPrice(currentPrice!)}) is at or past the target (${formatPrice(setup.target)}). No fresh ${dir} setup right now; the scanner surfaces a new one when it forms.`}
+        </p>
+        <div className="grid grid-cols-2 gap-x-2 gap-y-1 text-xs">
+          <div className="text-gray-500">Current</div><div className="font-mono text-gray-300">{currentPrice != null ? formatPrice(currentPrice) : '—'}</div>
+          <div className="text-gray-500">Last entry</div><div className="font-mono text-gray-400">{formatPrice(setup.entry_price)}{drift ? ` (${drift.pct >= 0 ? '+' : ''}${drift.pct.toFixed(1)}%)` : ''}</div>
+          <div className="text-gray-500">Last target</div><div className="font-mono text-gray-400">{formatPrice(setup.target)}</div>
+        </div>
+      </div>
+    );
+  }
+
   return (
     <div
       data-direction={setup.direction}
@@ -157,6 +205,11 @@ function SetupCard({ setup, action, currentPrice, risk, regime }: { setup?: Trad
         </p>
       )}
 
+      {primaryProjected && (
+        <p className="text-[11px] text-sky-400">
+          ⚑ Blue-sky: no resistance overhead — target is an ATR measured-move projection, not an S/R level.
+        </p>
+      )}
       {drift && drift.status === 'invalidated' && (
         <p className="text-[11px] text-red-400">
           ⚠ Price ({formatPrice(currentPrice!)}) is past the stop — this setup is invalidated.
@@ -341,12 +394,23 @@ export function RecommendationPanel({ symbol, longSetup, shortSetup, currentPric
     return null;
   }
 
+  // If the preferred setup has played out / been invalidated, the stored
+  // ticker-level bias and reasoning are stale — don't headline "Strong Long"
+  // above a "no current setup" card.
+  const preferredInactive = preferredSetup ? notActionableState(preferredSetup, currentPrice) : null;
+
   return (
     <section>
       <h2 className="mb-3 text-xs font-medium uppercase tracking-widest text-gray-500">Recommendation</h2>
       <div className="glass p-5 space-y-4">
         <div className="flex flex-wrap items-center gap-4">
+          {preferredInactive ? (
+            <span className="text-sm font-semibold text-gray-400">
+              No current setup <span className="font-normal text-gray-500">(last {preferredDirection} bias {recommendationActionLabel(action).toLowerCase()} — {preferredInactive.invalidated ? 'invalidated' : 'played out'})</span>
+            </span>
+          ) : (
             <span className="text-sm font-semibold text-blue-300">{recommendationActionLabel(action)}</span>
+          )}
           <span className={`text-sm font-semibold ${riskClass(summary?.risk_level ?? null)}`}>
             Risk: {summary?.risk_level ?? '—'}
           </span>
@@ -359,7 +423,7 @@ export function RecommendationPanel({ symbol, longSetup, shortSetup, currentPric
 
         <p className="text-xs text-gray-500">Recommended Action is the ticker-level bias. The preferred setup is shown first; the opposite side is available under Alternative scenario.</p>
 
-        {summary?.reasoning && (
+        {summary?.reasoning && !preferredInactive && (
           <p className="text-sm text-gray-300">{summary.reasoning}</p>
         )}
 

frontend/src/lib/qualification.ts

@@ -2,6 +2,20 @@ import type { ActivationConfig, TradeSetup } from './types';
 
 const HIGH_CONVICTION_ACTIONS = new Set(['LONG_HIGH', 'SHORT_HIGH']);
 
+// Projected (blue-sky) targets clear a stricter bar than S/R-anchored ones —
+// long-only, strong momentum, higher confidence floor. Mirrors the constants in
+// app/services/qualification.py; keep the two in sync.
+const PROJECTED_MIN_MOMENTUM_PERCENTILE = 90;
+const PROJECTED_CONFIDENCE_MARGIN = 10;
+
+/** Whether the setup's headline target is a blue-sky measured-move projection. */
+export function primaryTargetIsProjected(setup: TradeSetup): boolean {
+  const targets = setup.targets ?? [];
+  const primary = targets.find((t) => t.is_primary);
+  if (primary) return Boolean(primary.projected);
+  return targets.some((t) => t.projected);
+}
+
 function actionDirection(action: TradeSetup['recommended_action']): 'long' | 'short' | 'neutral' {
   if (!action || action === 'NEUTRAL') return 'neutral';
   if (action.startsWith('LONG')) return 'long';
@@ -51,6 +65,16 @@ export function qualifiesSetup(setup: TradeSetup, config: ActivationConfig): boo
       return false;
     }
   }
+  // Projected (blue-sky) targets clear a stricter bar than S/R-anchored ones,
+  // independent of the general momentum gate: long-only, strong momentum, higher
+  // confidence floor. Mirrors app/services/qualification.py.
+  if (primaryTargetIsProjected(setup)) {
+    if (setup.direction !== 'long') return false;
+    if (setup.momentum_percentile == null || setup.momentum_percentile < PROJECTED_MIN_MOMENTUM_PERCENTILE) {
+      return false;
+    }
+    if ((setup.confidence_score ?? 0) < config.min_confidence + PROJECTED_CONFIDENCE_MARGIN) return false;
+  }
   // NEUTRAL = "no clear setup"; an opposite action means this setup is counter-bias.
   if (config.exclude_neutral) {
     const actionDir = actionDirection(setup.recommended_action);

frontend/src/lib/types.ts

@@ -577,6 +577,8 @@ export interface TradeTarget {
   sr_level_id: number;
   sr_strength: number;
   is_primary?: boolean;
+  /** Blue-sky measured-move target (no overhead S/R); sr_level_id is -1. */
+  projected?: boolean;
 }
 
 export interface RecommendationSummary {

tests/unit/test_projected_targets.py

@@ -0,0 +1,201 @@
+"""Tests for blue-sky projected targets.
+
+When a ticker has NO S/R level overhead in the trade direction (e.g. a stock at
+all-time highs), the scanner would otherwise produce no setup and the last stale
+one would linger. Instead we project a measured-move (ATR) target so a breakout
+name still yields a setup — one that faces a stricter activation bar. These
+tests cover the target generator's projection rule and the scanner emission.
+"""
+
+from __future__ import annotations
+
+from datetime import date, datetime, timedelta, timezone
+from types import SimpleNamespace
+
+import pytest
+from sqlalchemy.ext.asyncio import AsyncSession
+
+from app.models.ohlcv import OHLCVRecord
+from app.models.score import CompositeScore
+from app.models.sr_level import SRLevel
+from app.models.ticker import Ticker
+from app.services.recommendation_service import (
+    PROJECTED_TARGET_ATR_MULTIPLE,
+    PROJECTED_TARGET_STRENGTH,
+    target_generator,
+)
+from app.services.rr_scanner_service import scan_ticker
+
+
+def _lvl(price: float, type_: str, strength: int = 50, id_: int = 1) -> SimpleNamespace:
+    return SimpleNamespace(id=id_, price_level=price, type=type_, strength=strength)
+
+
+class TestGenerateTargetsProjection:
+    """target_generator.generate_targets(direction, entry, stop, sr_levels, atr)."""
+
+    def test_blue_sky_long_projects_target(self):
+        # Entry 100, stop 97 (risk 3), ATR 2 — no resistance overhead at all.
+        targets = target_generator.generate_targets(
+            direction="long",
+            entry_price=100.0,
+            stop_loss=97.0,
+            sr_levels=[_lvl(90.0, "support"), _lvl(85.0, "support")],
+            atr_value=2.0,
+        )
+        assert len(targets) == 1
+        t = targets[0]
+        assert t["projected"] is True
+        assert t["sr_level_id"] == -1
+        assert t["sr_strength"] == PROJECTED_TARGET_STRENGTH
+        # 100 + 3 ATR (=6) = 106; reward 6 / risk 3 = 2.0 R:R
+        assert t["price"] == pytest.approx(100.0 + PROJECTED_TARGET_ATR_MULTIPLE * 2.0)
+        assert t["rr_ratio"] == pytest.approx(2.0)
+
+    def test_blue_sky_with_no_levels_at_all_projects(self):
+        targets = target_generator.generate_targets(
+            direction="long", entry_price=100.0, stop_loss=97.0, sr_levels=[], atr_value=2.0,
+        )
+        assert len(targets) == 1 and targets[0]["projected"] is True
+
+    def test_overhead_resistance_too_close_does_not_project(self):
+        # A resistance 0.5 ATR above (< 1.0 ATR min distance) is filtered out as a
+        # candidate — but it IS real overhead, so we must NOT project through it.
+        targets = target_generator.generate_targets(
+            direction="long",
+            entry_price=100.0,
+            stop_loss=97.0,
+            sr_levels=[_lvl(101.0, "resistance")],
+            atr_value=2.0,
+        )
+        assert targets == []
+
+    def test_normal_overhead_resistance_is_not_projected(self):
+        targets = target_generator.generate_targets(
+            direction="long",
+            entry_price=100.0,
+            stop_loss=97.0,
+            sr_levels=[_lvl(106.0, "resistance", strength=80)],
+            atr_value=2.0,
+        )
+        assert len(targets) == 1
+        assert not targets[0].get("projected")
+        assert targets[0]["sr_level_id"] == 1
+
+    def test_resistance_tagged_straddle_does_not_project(self):
+        # A resistance-tagged zone rep whose near edge sits just BELOW entry still
+        # means real overhead — never project through it, even though its price is
+        # under entry and it isn't a valid candidate.
+        targets = target_generator.generate_targets(
+            direction="long",
+            entry_price=100.0,
+            stop_loss=97.0,
+            sr_levels=[_lvl(99.5, "resistance"), _lvl(90.0, "support")],
+            atr_value=2.0,
+        )
+        assert targets == []
+
+    def test_blue_sky_short_projects_below(self):
+        targets = target_generator.generate_targets(
+            direction="short",
+            entry_price=100.0,
+            stop_loss=103.0,
+            sr_levels=[_lvl(110.0, "resistance")],
+            atr_value=2.0,
+        )
+        assert len(targets) == 1
+        assert targets[0]["projected"] is True
+        assert targets[0]["price"] == pytest.approx(100.0 - PROJECTED_TARGET_ATR_MULTIPLE * 2.0)
+
+
+# ---------------------------------------------------------------------------
+# Scanner emission
+# ---------------------------------------------------------------------------
+
+@pytest.fixture
+async def scan_session() -> AsyncSession:
+    from tests.conftest import _test_session_factory
+
+    async with _test_session_factory() as session:
+        yield session
+
+
+def _make_bars(ticker_id: int, num_bars: int = 20, base_close: float = 100.0):
+    bars = []
+    start = date(2024, 1, 1)
+    for i in range(num_bars):
+        close = base_close + (i % 3 - 1) * 0.5
+        bars.append(OHLCVRecord(
+            ticker_id=ticker_id,
+            date=start + timedelta(days=i),
+            open=close - 0.3,
+            high=close + 1.0,
+            low=close - 1.0,
+            close=close,
+            volume=100_000,
+        ))
+    return bars
+
+
+@pytest.mark.asyncio
+async def test_scan_emits_projected_long_when_blue_sky(scan_session: AsyncSession):
+    """A ticker with only support below entry (no overhead) yields a projected long."""
+    ticker = Ticker(symbol="BLUESKY")
+    scan_session.add(ticker)
+    await scan_session.flush()
+
+    scan_session.add_all(_make_bars(ticker.id, num_bars=20, base_close=100.0))
+    # Only support levels below entry — nothing overhead.
+    scan_session.add_all([
+        SRLevel(ticker_id=ticker.id, price_level=95.0, type="support", strength=80,
+                detection_method="pivot_point"),
+        SRLevel(ticker_id=ticker.id, price_level=90.0, type="support", strength=60,
+                detection_method="pivot_point"),
+    ])
+    scan_session.add(CompositeScore(
+        ticker_id=ticker.id, score=70.0, is_stale=False, weights_json="{}",
+        computed_at=datetime.now(timezone.utc),
+    ))
+    await scan_session.commit()
+
+    setups = await scan_ticker(scan_session, "BLUESKY", rr_threshold=1.5, atr_multiplier=1.5)
+
+    long_setups = [s for s in setups if s.direction == "long"]
+    assert len(long_setups) == 1, "blue-sky ticker should still yield a long setup"
+    long_setup = long_setups[0]
+
+    # Target is the measured-move projection, well above entry, R:R ~2.0.
+    assert long_setup.target > long_setup.entry_price
+    assert long_setup.rr_ratio == pytest.approx(2.0, abs=0.05)
+
+    primary = [t for t in long_setup.targets if t.get("is_primary")]
+    assert primary and primary[0]["projected"] is True
+    assert primary[0]["sr_level_id"] == -1
+    assert any("projected-target" in c for c in long_setup.conflict_flags)
+
+
+@pytest.mark.asyncio
+async def test_scan_does_not_project_when_resistance_overhead(scan_session: AsyncSession):
+    """With a normal resistance overhead, the long target is that S/R level, not a projection."""
+    ticker = Ticker(symbol="CAPPED")
+    scan_session.add(ticker)
+    await scan_session.flush()
+
+    scan_session.add_all(_make_bars(ticker.id, num_bars=20, base_close=100.0))
+    scan_session.add_all([
+        SRLevel(ticker_id=ticker.id, price_level=106.0, type="resistance", strength=80,
+                detection_method="pivot_point"),
+        SRLevel(ticker_id=ticker.id, price_level=95.0, type="support", strength=60,
+                detection_method="pivot_point"),
+    ])
+    scan_session.add(CompositeScore(
+        ticker_id=ticker.id, score=70.0, is_stale=False, weights_json="{}",
+        computed_at=datetime.now(timezone.utc),
+    ))
+    await scan_session.commit()
+
+    setups = await scan_ticker(scan_session, "CAPPED", rr_threshold=1.5, atr_multiplier=1.5)
+    long_setups = [s for s in setups if s.direction == "long"]
+    assert len(long_setups) == 1
+    primary = [t for t in long_setups[0].targets if t.get("is_primary")]
+    assert primary and not primary[0].get("projected")

tests/unit/test_qualification.py

@@ -6,6 +6,7 @@ from types import SimpleNamespace
 
 from app.services.qualification import (
     best_target_probability,
+    primary_target_is_projected,
     primary_target_probability,
     setup_qualifies,
 )
@@ -155,6 +156,54 @@ class TestExcludeNeutral:
         assert setup_qualifies(_setup(recommended_action="NEUTRAL"), DEFAULT_GATE) is True
 
 
+def _projected_setup(**kwargs):
+    """A setup whose primary (headline) target is a blue-sky projection."""
+    base = dict(
+        direction="long",
+        momentum_percentile=92.0,
+        confidence_score=80.0,
+        targets=[{"probability": 30.0, "is_primary": True, "projected": True}],
+    )
+    base.update(kwargs)
+    return _setup(**base)
+
+
+class TestProjectedTargetGate:
+    """Projected targets clear a stricter bar, independent of the momentum gate."""
+
+    def test_projected_passes_stricter_bar(self):
+        # DEFAULT_GATE has the momentum selection OFF, yet the projected block
+        # still requires strong momentum + higher confidence — and this one clears.
+        assert setup_qualifies(_projected_setup(), DEFAULT_GATE) is True
+
+    def test_projected_fails_below_momentum_floor(self):
+        assert setup_qualifies(_projected_setup(momentum_percentile=85.0), DEFAULT_GATE) is False
+
+    def test_projected_fails_missing_momentum(self):
+        assert setup_qualifies(_projected_setup(momentum_percentile=None), DEFAULT_GATE) is False
+
+    def test_projected_fails_below_raised_confidence_floor(self):
+        # min_confidence 55 + 10 margin = 65; a 60% confidence projected setup fails
+        # even though it would clear the plain 55 floor.
+        assert setup_qualifies(_projected_setup(confidence_score=60.0), DEFAULT_GATE) is False
+
+    def test_projected_short_never_qualifies(self):
+        s = _projected_setup(direction="short", recommended_action="SHORT_HIGH")
+        assert setup_qualifies(s, DEFAULT_GATE) is False
+
+    def test_sr_anchored_setup_unaffected_by_projected_bar(self):
+        # A normal (non-projected) setup with modest momentum still passes DEFAULT.
+        assert setup_qualifies(_setup(momentum_percentile=10.0), DEFAULT_GATE) is True
+
+    def test_primary_target_is_projected_helper(self):
+        assert primary_target_is_projected(_projected_setup()) is True
+        assert primary_target_is_projected(_setup()) is False
+
+    def test_projected_flag_falls_back_when_no_primary(self):
+        s = _setup(targets=[{"probability": 30.0, "projected": True}])
+        assert primary_target_is_projected(s) is True
+
+
 class TestBestTargetProbability:
     def test_returns_max(self):
         s = _setup(targets=[{"probability": 40.0}, {"probability": 72.0}, {"probability": 55.0}])