Discussing the article: "Developing a Trading Strategy: The Flower Volatility Index Trend-Following Approach"
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Check out the new article: Developing a Trading Strategy: The Flower Volatility Index Trend-Following Approach.
The relentless quest to decode market rhythms has led traders and quantitative analysts to develop countless mathematical models. This article has introduced the Flower Volatility Index (FVI), a novel approach that transforms the mathematical elegance of Rose Curves into a functional trading tool. Through this work, we have shown how mathematical models can be adapted into practical trading mechanisms capable of supporting both analysis and decision-making in real market conditions.
Financial markets move in rhythms—patterns of expansion and contraction, acceleration and slowdown, trend formation and cyclical rotation. Traders have long attempted to model this rhythm mathematically, creating indicators that help define entry opportunities, identify trend direction, or signal when prices have stretched too far from equilibrium. These price-based mathematical models, broadly known as technical indicators, are interpreted in different ways depending on the trader’s objective.
Over the years, several indicators have stood out for mapping cycles and trends or overextended conditions, including the Commodity Channel Index (CCI), Force Index, Bull and Bear Power, Relative Vigor Index (RVI), Cycle Lines, and Fibonacci Time Zones. Each offers a unique lens into market structure.
In this article, we introduce a trend-following strategy derived from a classical mathematical function known as the Rose Curve. Originally studied by Italian mathematician Guido Grandi (1671–1742), the Rose Curve produces geometric flower-like patterns—hence its name. By redefining its parameters, we construct a new oscillator called the Flower Volatility Index (FVI) and then build a trend-trading framework around it.
Author: Daniel Opoku