Aeon Flux

2 thg 12, 2024

Aeon Flux visualizes rolling cumulative realized volatility, as a signal-generating leading indicator.

'Realized volatility' is shorthand for the metric's true output: entropy. The uniformity (or lack of uniformity) of price and volume distributions over a rolling cumulative period, normalized across the asset's full history.

Entropy = x⋅log2(x)−(1−x)⋅log2(1−x)


AEON FLUX VISUALIZES TIME CYCLES

Aeon Flux distills any asset's cyclical pendulum-like behavior, from bull to bear and vice versa, in a visualization that surfaces and isolates the pendulum shift.

As such, Aeon Flux may be the first metric to automate visualization of time cycles.



Time cycles are a soft science and esoteric concept in markets: an opinion, hard to prove or disprove.

They're ultimately just cycles of accumulation & distribution, that tend to recur at rough consistent intervals.

(Aeon Flux does not measure accumulation & distribution directly, those forces are merely implied.)


ENTROPY AS A LEADING INDICATOR

The transitions between state (from bullish to bearish & vice versa) are often good swing entries & exits, across a wide range of high cap risk markets.




ENTROPY AS A DISTRIBUTION MONITOR

Aeon Flux has a track record of detecting higher timeframe macro distribution on the BTC Index.

The signal: two cycles in a row of lower highs, where the cycle high (the highest oscillator print achieved that cycle) is lower than the previous cycle's high.



Invalidation: if the second cycle in a row of lower highs touches the green AND red target areas on its way up, that demonstrates robust volatility, and the distribution signal is invalidated.


ALERTS & NOTIFICATIONS

Alerts are enabled for swing long & short signals. Automating alerts to monitor distribution are a potential enhancement for future iterations of the script.

12 thg 12, 2024

Phát hành các Ghi chú

Minor settings update. Output unaffected.

16 thg 12, 2024

Phát hành các Ghi chú

Removed the product key.