# Hotspot Rules Layer

## Purpose

Rules define testable feature hypotheses. They are not permanent production
weights and they are not trading advice.

## Canonical Rule File

- `docs/ta_reference/institutional_hotspot_rules.md`

## Rule Families

### Institutional Flow Memory

- `flow_120d_accumulation`
- `flow_20d_acceleration`
- `foreign_20ma_support`
- `trust_10ma_support`
- `dealer_confirmation`

### Risk And Divergence

- `trust_10ma_break`
- `foreign_20ma_break`
- `flow_divergence_risk`
- `flow_distribution_risk`

### Price And Volume Context

- 20-day and 60-day momentum
- 5/20 volume surge
- average traded value
- MA20 and MA60 distance
- volatility penalty

## Implementation Rule

Every new rule should be implemented as an auditable metric or reason in the
hotspot payload first.  Only after no-lookahead validation passes should it be
allowed to affect production recommendation weighting.

## Current Code Anchors

- `services/hotspot_scanner_service.py`
- `data/institutional_flow_cache.py`
- `scripts/precompute_full_market_hotspots.py`