Aeon Flux

2 Dis 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 Dis 2024

Nota Keluaran

Minor settings update. Output unaffected.

16 Dis 2024

Nota Keluaran

Removed the product key.