STEP INDEX & VOLATILITY INDICES SIGNAL INDICATOR/STRATEGY (3-4 DAILY SIGNALS)

STEP INDEX & VOLATILITY INDICES SIGNAL INDICATOR/STRATEGY (3-4 DAILY SIGNALS)

BUY (BLUE COLOR) & SELL (RED COLOR) Signals must show on the chart on time with NO delays

Core Signal System (M15 Entries + H1 Analysis)

Primary Trend Direction (Mandatory)

• Analysis: H1 chart - 20-EMA vs 50-EMA trend direction
• Entry: M15 chart - Price position relative to H1 EMAs
• BUY: H1: 20-EMA over 50-EMA + M15: Price above H1 20-EMA level
• SELL: H1: 20-EMA below 50-EMA + M15: Price below H1 20-EMA level

Multi-Timeframe RSI (Key Component)

• Analysis timeframe: H1 RSI for trend bias
• Signal timeframe: M15 RSI for precise entries
• BUY: H1 RSI 35-65 + M15 RSI crosses above 35
• SELL: H1 RSI 35-65 + M15 RSI crosses below 65

MACD Momentum (M15 Signals)

• Settings: 8, 21, 5 on M15 chart
• Analysis: H1 MACD for trend confirmation
• BUY: H1 MACD bullish + M15 MACD line > Signal line
• SELL: H1 MACD bearish + M15 MACD line < Signal line

Bollinger Band Squeeze/Expansion

• Settings: BB(14, 2.0) optimized for step movements
• BUY: Price touches lower band + starts moving up
• SELL: Price touches upper band + starts moving down

Volume Surge Confirmation

• Threshold: Volume > 1.3x average (20-period)
• Purpose: Confirms algorithmic movement strength

Signal Generation Logic (3-4 Daily Signals)

BUY Signal Requirements (ALL 5 must be true):

1.  H1: 20-EMA > 50-EMA + M15: Price above H1 20-EMA level
2. H1 RSI 35-65 + M15 RSI crosses above 35
3. H1 MACD bullish + M15 MACD line > Signal line
4. M15: Price at/near Bollinger lower band + reversal candle
5. M15: Volume > 1.3x average (confirms entry timing)

SELL Signal Requirements (ALL 5 must be true):

1. H1: 20-EMA < 50-EMA + M15: Price below H1 20-EMA level
2. H1 RSI 35-65 + M15 RSI crosses below 65
3. H1 MACD bearish + M15 MACD line < Signal line
4. M15: Price at/near Bollinger upper band + reversal candle
5. M15: Volume > 1.3x average (confirms entry timing)

Step Index Specific Adaptations

Price Movement Recognition

Step Index moves in fixed increments (0.1, 0.2, 0.5 points)

Step Size = 0.1 Adjust based on index type

Min Move = Step Size  3  Minimum 3-step move for signal validity

Movement confirmation

Valid Move = abs (Close - Close[3]) >= Min Move

Support/Resistance for Step Indices

Use round numbers and step multiples

Resistance Level = ceil (High/Step Size) Step Size

Support Level = floor(Low/Step Size)  Step Size

Volatility Index Adaptations

Index-Specific Settings:

• Vol 10: Use 15-minute timeframe for signals
• Vol 25: Use 30-minute timeframe
• Vol 50: Use 1-hour timeframe
• Vol 75/100: Use 1-hour to 4-hour timeframes

Modified RSI Thresholds:

• High Vol (75/100): RSI 30/70 levels
• Medium Vol (25/50): RSI 35/65 levels
• Low Vol (10): RSI 40/60 levels

Enhanced Technical Implementation

Core Algorithm (M15 Entry + H1 Analysis)

H1 Trend Analysis

H1_EMA20 = EMA(H1_Close, 20)

H1_EMA50 = EMA(H1_Close, 50) 

H1_TrendUp = H1_EMA20 > H1_EMA50

H1_TrendDown = H1_EMA20 < H1_EMA50

H1 Bias Indicators

H1_RSI = RSI(H1_Close, 14)

H1_MACD = EMA(H1_Close, 8) - EMA(H1_Close, 21)

H1_Signal = EMA(H1_MACD, 5)

H1_MACDBullish = H1_MACD > H1_Signal

H1_MACDBearish = H1_MACD < H1_Signal

M15 Entry Signals

M15_RSI = RSI(M15_Close, 14)

M15_MACD = EMA(M15_Close, 8) - EMA(M15_Close, 21)

M15_Signal = EMA(M15_MACD, 5)

M15_BB_Upper = SMA(M15_Close, 14) + (2  StdDev(M15_Close, 14))

M15_BB_Lower = SMA(M15_Close, 14) - (2  StdDev(M15_Close, 14))

Volume Confirmation

M15_AvgVol = SMA(M15_Volume, 20)

Volume Confirm = M15_Volume > (M15_AvgVol x 1.3)

Signal Generation Code

Score Count = 0

Similar logic for SELL signals

Visual Display (Optimized for Synthetic Markets)

Chart Signals

• Signal strength: 1-5 stars based on score 

Information Panel

INDEX: STEP INDEX  

SIGNALS TODAY: 5/6   

TREND: BULLISH       

RSI: 45 → 38 ✅       

MACD: BULLISH ✅     

BB: NEAR SUPPORT ⚡  

SCORE: 4/5      

NEXT SIGNAL: WAITING 

Risk Management for Synthetic Indices

Position Sizing

• Risk per signal: 1-2% of account
• Step Index stops: 5-10 steps from entry
• Volatility Index stops: 0.5-1.0% of index value

Target Profits

• Conservative: 2:1 risk-reward
• Aggressive: 3:1 risk-reward
• Step Index: Target 15-30 steps profit

Daily Signal Distribution

Target: 3-4 Strong Signals Per Day

• Morning session: 1-2 signals (00:00-12:00 GMT)
• Afternoon session: 1-2 signals (12:00-24:00 GMT)
• Signal spacing: Minimum 2 hours between signals
• Maximum per index: 5 signals per day per index