formulassignalsliquidity
Start With The Event
A formula should begin with a market behavior you can describe: pressure rising, pressure disappearing, spread widening, or a symbol diverging from its recent baseline.
Keep The First Version Simple
- Use one primary variable.
- Add a threshold that can be reviewed visually.
- Only add distribution metrics or lookback when the simple version is noisy.
- Name the signal after the behavior, not the math.
Review Before Automating
A signal that cannot survive manual review should not become an alert. Use alerts to pull attention, then verify the chart and context.
Related reading
More on building and reading signals: