The 11-Factor Signal Engine

The highest-weighted factor. ADX-adjusted so trending markets get full weight while ranging markets are discounted before a signal is scored. A level-break bonus of up to +10 points fires when price breaks a key structure level with momentum behind it — the highest-confidence entry setup in the engine.

A composite score pulling from multi-timeframe TA — RSI, MACD, EMA stack alignment, and candlestick structure — combined with TD Sequential timing signals. Like Price Momentum, the score is ADX regime-adjusted: trending markets produce cleaner TA reads than choppy ones, and the engine knows the difference.

The proprietary Knox formula — the intellectual core of the engine. Born from options market analysis and adapted natively for perpetual futures. Weights crowd sentiment against actual price action to detect divergence between what the crowd believes and what price is doing. When these diverge, alpha follows.

The perp market's most honest real-time signal. Extreme positive funding means the market is overloaded with longs and crowded in one direction — a setup for a violent reversion. The engine applies an adverse funding penalty: if open interest is running against your directional signal, the entire score is discounted proportionally.

The ATR regime filter measures whether the market is in expansion or compression relative to its own recent history. Expanding ATR vs the rolling median signals a trending move with real momentum. Compressing ATR signals chop, consolidation, or a pending reversal. The engine uses this to detect regime shifts before they become obvious on a price chart.

Open interest tells you whether the market's participation is expanding or contracting. Rising price with rising OI = real trend with new money coming in. Rising price with falling OI = short-covering rally — no new buyers, just trapped shorts unwinding. The engine distinguishes between these and scores accordingly.

A dynamic rolling baseline that adapts to each asset's normal volume profile — not a static average. Price moves on low relative volume get penalized because they lack participation. Breakouts without volume are suspect. Volume is the engine's lie detector for price action.

The only factor in the engine that can subtract from the total score. Multi-timeframe consensus measures whether the 15m, 1H, 4H, and Daily are all pointing the same direction. Full alignment amplifies every other factor. Conflicting timeframes introduce a penalty — the signal is noise, not edge. A bullish 1H inside a bearish daily trend is a trap, not a setup.

Volume-Weighted Average Price is the institutional benchmark — the level most algorithmic strategies anchor to. Price above VWAP signals buy-side dominance for the session. Price below VWAP signals sell-side control. A bullish signal where price is trading above VWAP has more institutional support behind it than the same signal below VWAP.

The chart pattern engine scores classical formations — pennants, flags, breakouts, wedges — but only when they form at key levels and are confirmed by volume. Random patterns in empty space score zero. Patterns at significant structure score full points. TD Sequential adds timing precision: a 9-count at a key level during a pattern breakout is one of the highest-accuracy confluences the engine can register.

Stop-hunt detection. When price wicks below a significant low and immediately reclaims the level, it has swept the stop-loss orders clustered beneath it — trapping shorts and clearing the path for a reversal. This fingerprint is left by smart money moving size through stop-dense zones. One of the highest-accuracy setups in the engine, and one of the most misunderstood by retail traders.