diff --git a/SIGNAL_QUALITY_OPTIMIZATION_ROADMAP.md b/SIGNAL_QUALITY_OPTIMIZATION_ROADMAP.md
index d6f69d4..f8ee0f8 100644
--- a/SIGNAL_QUALITY_OPTIMIZATION_ROADMAP.md
+++ b/SIGNAL_QUALITY_OPTIMIZATION_ROADMAP.md
@@ -92,9 +92,12 @@ Real-time database analysis that detects overtrading and flip-flop patterns befo
    - Counts both executed trades AND blocked signals
    - Prevents excessive trading in consolidation zones
    
-2. **Flip-flop (opposite direction <15min):** -25 points
-   - Blocks rapid long→short→long whipsaws
-   - Example: SHORT 10:00 → LONG 10:12 = blocked
+2. **Flip-flop with price context (opposite direction <15min):** -25 points
+   - **NEW:** Only applies if price moved <2% from opposite signal
+   - Distinguishes chop from reversals
+   - Example chop: $154.50 SHORT → $154.30 LONG (0.13% move) = blocked ⚠️
+   - Example reversal: $170 SHORT → $153 LONG (10% move) = allowed ✅
+   - Blocks rapid long→short→long whipsaws in tight ranges
    
 3. **Alternating pattern (last 3 trades):** -30 points
    - Detects choppy market conditions
@@ -113,10 +116,11 @@ Real-time database analysis that detects overtrading and flip-flop patterns befo
 - Better capital preservation in chop
 
 ### Monitoring
-Watch for penalty messages in logs:
+Watch for penalty and allowance messages in logs:
 ```
 ⚠️ Overtrading zone: 3 signals in 30min (-20 pts)
-⚠️ Flip-flop detected: opposite direction 12min ago (-25 pts)  
+⚠️ Flip-flop in tight range: 12min ago, only 0.13% move (-25 pts)
+✅ Direction change after 10.2% move (12min ago) - reversal allowed
 ⚠️ Chop pattern: last 3 trades alternating (long → short → long) (-30 pts)
 ```