Retail Pain Index (RPIx)

(RPIx) Retail Pain Index (DAFE)

See the Market’s Pain. Trade the Edge.

The Retail Pain Index (RPIx) is a next-generation volatility and sentiment tool designed to reveal the hidden moments when retail traders are most likely being squeezed, stopped out, or forced to capitulate. This is not just another oscillator—it’s a behavioral market scanner that quantifies “pain” as price rips away from the average entry zone, often marking the fuel for the next big move.

Why is RPIx so Unique?

Behavioral Volatility Engine:
RPIx doesn’t just track price or volume. It measures how far price is moving away from where the crowd has recently entered (using a rolling VWAP average), then normalizes this “distance” into a Z-score. The result? You see when the market is inflicting maximum pain on the most participants.

Dynamic, Intuitive Coloring:
The main RPIx line is purple in normal conditions, but instantly turns red when pain is extreme to the upside (+2.00 or higher) and green when pain is extreme to the downside (-2.00 or lower). This makes it visually obvious when the market is entering a “max pain” regime.

Threshold Lines for Clarity:
Dashed red and green lines at +2.00 and -2.00 Z-score levels make it easy to spot rare, high-pain events at a glance.

Signature Dashboard & Info Line:
Dashboard: A compact, toggleable panel in the top right of the indicator pane shows the current Z-score, threshold, and status—perfect for desktop users who want a quick read on market stress.
Info Line: For mobile or minimalist traders, a single-line info label gives you the essentials without cluttering your screen.
Inputs & Customization
Entry Cluster Lookback: Adjusts how many bars are used to calculate the “entry zone” (VWAP average). A higher value smooths the signal, a lower value makes it more responsive.

Pain Z-Score Threshold:
Sets the sensitivity for what counts as “extreme pain.” Default is ±2.00, but you can fine-tune this to match your asset’s volatility or your own risk appetite.

Show Dashboard / Show Compact Info Label:
Toggle these features on or off to fit your workflow and screen size.

How to utilize RPIx's awesomeness:

Extreme Readings = Opportunity:
When RPIx spikes above +2.00 (red) or below -2.00 (green), the market is likely running stops, liquidating weak hands, or forcing retail traders to capitulate. These moments often precede sharp reversals, trend accelerations, or volatility expansions.

Combine with Price Action:
Use RPIx as a confirmation tool for your existing strategy, or as a standalone alert for “pain points” where the crowd is most vulnerable.

Visual Edge:
The color-coded line and threshold levels make it easy to spot regime shifts and rare events—no more squinting at numbers or guessing when the market is about to snap.

Why RPIx?
Works on Any Asset, Any Timeframe:
Stocks, futures, crypto, forex—if there’s a crowd, there’s pain, and RPIx will find it.

Behavioral Alpha:
Most indicators lag. RPIx quantifies the psychological stress in the market, giving you a real-time edge over the herd.

Customizable, Clean, and Powerful:
Designed for both power users and mobile traders, with toggles for every workflow.

See the pain. Trade the edge.
Retail Pain Index: Because the market’s next move is written in the crowd’s discomfort.

For educational purposes only. Not financial advice. Always use proper risk management

Use with discipline. Trade your edge.
— Dskyz, for DAFE Trading Systems, for DAFE Trading Systems