Confluence Signals from VI, ROC-RSI, and Price ROC

Summary

This strategy combines three technical measures: a Vortex-style indicator (VI) comparing upward and downward movement, ROC-RSI blending rate of change with relative strength, and price rate of change. VI is used to assess directional pressure, ROC-RSI to identify extreme conditions, and Price ROC to gauge price momentum. Trades are intended only when all three indicators align, with the aim of filtering some isolated signals.

The document describes the logic and parameter settings, plus a Binance BTC/USDT futures backtest configuration covering roughly one year. It provides no performance statistics or results, so it does not establish that the approach improves returns or win rate. It notes that parameter choices can make indicators conflict and suggests testing alternate combinations, signal rules, instruments, and timeframes, with stop losses and position sizing as risk controls. The supplied code uses threshold rules and simultaneous conditions; its short-period settings may be sensitive to noise, and the proposed filters can also delay or omit trades.

Key ideas

• The strategy compares smoothed positive and negative movement to derive directional VI signals.
• ROC-RSI combines price change and RSI information to identify extreme conditions.
• Price ROC adds a direct measure of price momentum to the signal set.
• The stated entry logic requires all three indicators to agree, which may reduce some signals as well as false entries.
• Parameter conflicts and instrument or timeframe dependence require testing; the document reports no backtest outcomes.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.