diff --git a/app/api/analytics/reentry-check/route.ts b/app/api/analytics/reentry-check/route.ts
index fe2edfa..0d3ba90 100644
--- a/app/api/analytics/reentry-check/route.ts
+++ b/app/api/analytics/reentry-check/route.ts
@@ -147,6 +147,7 @@ export async function POST(request: NextRequest) {
       pricePosition: metrics.pricePosition,
       direction: direction as 'long' | 'short',
       symbol: symbol,
+      currentPrice: metrics.currentPrice,
       skipFrequencyCheck: true, // Re-entry check already considers recent trades
     })
 
diff --git a/app/api/trading/check-risk/route.ts b/app/api/trading/check-risk/route.ts
index 5bce618..04faf5b 100644
--- a/app/api/trading/check-risk/route.ts
+++ b/app/api/trading/check-risk/route.ts
@@ -16,6 +16,7 @@ export interface RiskCheckRequest {
   symbol: string
   direction: 'long' | 'short'
   timeframe?: string // e.g., "5" for 5min, "60" for 1H, "D" for daily
+  currentPrice?: number // Current market price (for flip-flop context)
   // Optional context metrics from TradingView
   atr?: number
   adx?: number
@@ -58,6 +59,7 @@ async function shouldAllowScaling(
     pricePosition: newSignal.pricePosition,
     direction: newSignal.direction,
     symbol: newSignal.symbol,
+    currentPrice: newSignal.currentPrice,
     minScore: config.minScaleQualityScore,
   })
   
@@ -318,6 +320,7 @@ export async function POST(request: NextRequest): Promise<NextResponse<RiskCheck
         pricePosition: body.pricePosition || 0,
         direction: body.direction,
         symbol: body.symbol,
+        currentPrice: body.currentPrice,
         timeframe: body.timeframe, // Pass timeframe for context-aware scoring
         minScore: config.minSignalQualityScore // Use config value
       })
diff --git a/app/api/trading/execute/route.ts b/app/api/trading/execute/route.ts
index 88e3028..bd60664 100644
--- a/app/api/trading/execute/route.ts
+++ b/app/api/trading/execute/route.ts
@@ -365,6 +365,7 @@ export async function POST(request: NextRequest): Promise<NextResponse<ExecuteTr
           pricePosition: body.pricePosition || 0,
           direction: body.direction,
           symbol: driftSymbol,
+          currentPrice: openResult.fillPrice,
           timeframe: body.timeframe,
         })
         
@@ -596,6 +597,7 @@ export async function POST(request: NextRequest): Promise<NextResponse<ExecuteTr
         pricePosition: body.pricePosition || 0,
         direction: body.direction,
         symbol: driftSymbol,
+        currentPrice: openResult.fillPrice,
         timeframe: body.timeframe,
       })
       
diff --git a/lib/database/trades.ts b/lib/database/trades.ts
index 4e13d5d..f029e0d 100644
--- a/lib/database/trades.ts
+++ b/lib/database/trades.ts
@@ -567,6 +567,7 @@ export async function getRecentSignals(params: {
   totalSignals: number
   oppositeDirectionInWindow: boolean
   oppositeDirectionMinutesAgo?: number
+  oppositeDirectionPrice?: number
   last3Trades: Array<{ direction: 'long' | 'short'; createdAt: Date }>
   isAlternatingPattern: boolean
 }> {
@@ -581,7 +582,7 @@ export async function getRecentSignals(params: {
         symbol: params.symbol,
         createdAt: { gte: timeAgo },
       },
-      select: { direction: true, createdAt: true },
+      select: { direction: true, createdAt: true, entryPrice: true },
       orderBy: { createdAt: 'desc' },
     }),
     prisma.blockedSignal.findMany({
@@ -589,15 +590,23 @@ export async function getRecentSignals(params: {
         symbol: params.symbol,
         createdAt: { gte: timeAgo },
       },
-      select: { direction: true, createdAt: true },
+      select: { direction: true, createdAt: true, signalPrice: true },
       orderBy: { createdAt: 'desc' },
     }),
   ])
   
-  // Combine and sort all signals
+  // Combine and sort all signals with their prices
   const allSignals = [
-    ...trades.map(t => ({ direction: t.direction as 'long' | 'short', createdAt: t.createdAt })),
-    ...blockedSignals.map(b => ({ direction: b.direction as 'long' | 'short', createdAt: b.createdAt })),
+    ...trades.map(t => ({ 
+      direction: t.direction as 'long' | 'short', 
+      createdAt: t.createdAt,
+      price: t.entryPrice 
+    })),
+    ...blockedSignals.map(b => ({ 
+      direction: b.direction as 'long' | 'short', 
+      createdAt: b.createdAt,
+      price: b.signalPrice 
+    })),
   ].sort((a, b) => b.createdAt.getTime() - a.createdAt.getTime())
   
   // Check for opposite direction in last 15 minutes
@@ -629,6 +638,7 @@ export async function getRecentSignals(params: {
     oppositeDirectionMinutesAgo: oppositeInLast15 
       ? Math.floor((Date.now() - oppositeInLast15.createdAt.getTime()) / 60000)
       : undefined,
+    oppositeDirectionPrice: oppositeInLast15?.price,
     last3Trades: last3Trades.map(t => ({ 
       direction: t.direction as 'long' | 'short', 
       createdAt: t.createdAt 
diff --git a/lib/trading/signal-quality.ts b/lib/trading/signal-quality.ts
index 84530be..bdd4c1e 100644
--- a/lib/trading/signal-quality.ts
+++ b/lib/trading/signal-quality.ts
@@ -51,6 +51,7 @@ export async function scoreSignalQuality(params: {
   pricePosition: number
   direction: 'long' | 'short'
   symbol: string // Required for frequency check
+  currentPrice?: number // Required for flip-flop price context check
   timeframe?: string // "5" = 5min, "15" = 15min, "60" = 1H, "D" = daily
   minScore?: number // Configurable minimum score threshold
   skipFrequencyCheck?: boolean // For testing or when frequency check not needed
@@ -209,7 +210,30 @@ export async function scoreSignalQuality(params: {
       }
 
       // Penalty 2: Flip-flop (opposite direction in last 15 minutes)
-      if (recentSignals.oppositeDirectionInWindow) {
+      // BUT: Only penalize if price hasn't moved significantly (< 2% from opposite signal)
+      // This distinguishes chop (bad) from legitimate reversals (good)
+      if (recentSignals.oppositeDirectionInWindow && recentSignals.oppositeDirectionPrice) {
+        const priceChangePercent = Math.abs(
+          ((params.currentPrice || 0) - recentSignals.oppositeDirectionPrice) / recentSignals.oppositeDirectionPrice * 100
+        )
+        
+        if (priceChangePercent < 2.0) {
+          // Small price move = consolidation/chop = BAD
+          frequencyPenalties.flipFlop = -25
+          score -= 25
+          reasons.push(
+            `⚠️ Flip-flop in tight range: ${recentSignals.oppositeDirectionMinutesAgo}min ago, ` +
+            `only ${priceChangePercent.toFixed(2)}% move (-25 pts)`
+          )
+        } else {
+          // Large price move = potential reversal = ALLOW
+          reasons.push(
+            `✅ Direction change after ${priceChangePercent.toFixed(1)}% move ` +
+            `(${recentSignals.oppositeDirectionMinutesAgo}min ago) - reversal allowed`
+          )
+        }
+      } else if (recentSignals.oppositeDirectionInWindow && !recentSignals.oppositeDirectionPrice) {
+        // Fallback: If we don't have price data, apply penalty (conservative)
         frequencyPenalties.flipFlop = -25
         score -= 25
         reasons.push(`⚠️ Flip-flop detected: opposite direction ${recentSignals.oppositeDirectionMinutesAgo}min ago (-25 pts)`)