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Vaidya Signal

Vision

  1. A program which at the end of each business day can scan a list of tickers to check for triggers of the Vaidya Signal. It should show all instances when the Vaidya Signal triggered in the past 5 years (using a bar size of 1 day).
  2. Enable the script to be run for weekly and monthly bars.
  3. A GUI and service to visualize when the signal triggered.

Version 1

Script with outputs JSON of all Vaidya Signal triggers over the past X years.

Version 2

  • website lets users add/remove tickers to track for signal triggers
  • website lets users see historical signal triggers for a tracked ticker
  • service scans tracked tickers daily at 16:20 EST for signal triggers
  • database

The Vaidya Signal (Bottom Divergence)

The Vaidya Signal is triggered when these three conditions are met:

  • the current low* (L2) is lower than the previous low (L1)
  • MACD and RSI are both higher at L2 than they were at L1
  • volume at the L2 is lower than it was at L1

*a low is defined as having 3 days before and after that are higher than the low (using close values)

TODO

  • create a program which can loop over a list of tickers
  • collect day bars each ticker for the past 6 years
  • calculate MACD and RSI for each day (using two years as ramp-up)
  • find all instances of the Vaidya Signal triggering over the past 5 years
  • output instances to a JSON file

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