The Rope Indicator: Bull and Bear Force, Vigor, and Skill
Summary
The article presents the Rope indicator, adapted from Erik Nayman’s market-analysis framework. It separates price changes over a selected period into bullish and bearish force, measured by the sum of positive or negative changes; vigor, measured by the count of changes in each direction; and skill, defined as force per change. Comparing these measures is intended to assess which side dominates and how strongly. The implementation displays separate bull and bear histograms, a combined line, and moving averages, with colors reflecting the degree of agreement among measures.
The article also describes an Expert Advisor with several entry and exit approaches and parameter optimization on EURUSD hourly data from 2005 to 2015. It reports that the authors considered the results supportive, but the excerpt provides no performance figures for independent assessment. The indicator uses a static calculation despite discussing dynamic comparisons, and the tests cover a limited historical setup without additional money management. Results therefore do not establish robustness or future profitability.
Key ideas
- Bullish and bearish force is calculated from the sum of price changes in each direction.
- Vigor counts directional changes, while skill measures average change size per directional move.
- Agreement among force, vigor, and skill is used to grade trend direction and strength.
- The article tests several indicator-based trading rules on a limited EURUSD historical sample, which does not establish general robustness.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.