OPEN-SOURCE SCRIPT
Advanced Physics Trading System (Dynamic Table)
The Physics of Price ActionQuantitative Execution via Mechanics, Thermodynamics & Information Theory
Executive SummaryStandard technical analysis relies heavily on lagging momentum oscillators and subjective geometry.
The Physics-Based Trading Engine treats market dynamics as a closed physical system:Mass & Volume: Normalizes volume to determine institutional mass participation.Kinetic & Potential Energy: Quantifies real-time momentum vs. spring-band tension for mean-reversion setups.
Shannon Entropy: Measures market disorder to filter out false breakouts during noisy consolidation regimes.
Core Objective: Eliminate false signals during high-entropy regimes while capturing high-conviction momentum expansions.
Core System Mechanics
┌─────────────────────────────────────────────────────────────────┐
│ PRICE & VOLUME INPUTS │
└─────────────────────────────────────────────────────────────────┘
│
┌──────────────────┴──────────────────┐
▼ ▼
┌─────────────────────────┐ ┌─────────────────┐
│ KINEMATIC ENGINE │ │ INFORMATION │
│ │ │ THEORY ENGINE │
│ • Velocity & G-Force │ │ │
│ • Kinetic/Potential E. │ │ • Discrete Bin │
│ • Mass & Impulse │ │ Probabilities │
└────────────┬────────────┘ │ • Shannon │
│ │ Entropy ($S$) │
│ └────────┬────────┘
│ │
└──────────────────┬──────────────────┘
│
▼
┌──────────────────────────────────────────────┐
│ LOW-ENTROPY FILTER ($S \le 0.85$) │
└──────────────────────┬───────────────────────┘
│
┌─────────┴─────────┐
▼ ▼
┌───────────────┐ ┌───────────────┐
│ BUY SIGNAL │ │ SELL SIGNAL │
└───────────────┘ └───────────────┘
Key Metrics & Governing Equations
1. Velocity ($v$) & G-Force Acceleration ($a$)Normalizes price change over volatility (ATR) to measure true speed and rate of velocity change:$$v = \frac{\Delta \text{Close}}{\text{ATR}(20)}$$$$a = v - v_{[1]}$$
2. Kinetic ($E_k$) & Potential Energy ($E_p$)Measures explosive directional fuel versus mean-reversion spring tension:$$E_k = \frac{1}{2} m_{norm} \cdot v^2$$$$E_p = \frac{1}{2} k \cdot \left(\frac{\text{Close} - \text{SMA}(14)}{\text{ATR}(20)}\right)^2$$
3. Shannon Entropy ($S$)Calculates discrete probability distribution across 5 directional Volume-Work bins:$$H(X) = -\sum_{i=1}^{5} p_i \log_2(p_i)$$$$\text{Normalized Entropy } S = \frac{H(X)}{\log_2(5)}$$Signal Matrix & Status ArchitectureMetricCondition / ThresholdState / InterpretationVisual IndicatorVelocity ($v$)$v > 0.5$ / $v < -0.5BBULLISH / Bearish Rate of TravelBlue Plot LineG-Force ($a$)$a > 0$ / $a < 0$
Positive Acceleration / DecelerationOrange Line⚡ Force ($F$)$F > 0.5$ / $F < -0.5
NET Institutional Push🟢 Lime / 🟣 Fuchsia ShapesEntropy ($S$)$S \le 0.85$ vs. $S > 0.85$Orderly Trend vs. High-Chop Noise🟩 Green / 🔴 Red (Dashboard)Impulse ($J$)$J > 0$ & $J > J_{[1]}$Accelerating Bullish Force🟩 Bright Lime$J > 0$ & $J \le J_{[1]}$Fading Bullish Force🟢 Dark Green$J < 0$ & $J < J_{[1]}$Accelerating Bearish Force🔴 Bright Red$J < 0$ & $J \ge J_{[1]}$Fading Bearish Force🟥 Dark RedExecution Rules & Risk Management1.Filter Regime Validation:Information Theory Layer.Verify that Normalized Entropy is below the maximum threshold ($S \le 0.85$). If $S > 0.85$, all directional breakout signals are suppressed.
2.Kinematic Alignment Confirmation:
Energy & Impulse Verification.Ensure Velocity ($v > 0.5$) and Acceleration ($a > 0$) align with positive Volume Work and Kinetic Energy exceeds threshold ($E_k > 2.0$).
3.Execution Entry:Main Chart Trigger.
Enter long on explicit BUY label / lime bar highlight. Enter short on explicit SELL label / red bar highlight.
4.Exhaustion & Tension Monitoring:
Exit Mechanics
.Exit position when Kinetic Energy hits extreme exhaustion ($E_k > 3 \times \text{Threshold}$ with inverse acceleration) or Potential Tension ($E_p > 2.5$) signals a mean-reversion SNAP back to spring bands.
Indicator is real time derived and repaint ....
ONLY FOR EDUCATIONAL PURPOSES
NOT A FINANCIAL ADVICE
Executive SummaryStandard technical analysis relies heavily on lagging momentum oscillators and subjective geometry.
The Physics-Based Trading Engine treats market dynamics as a closed physical system:Mass & Volume: Normalizes volume to determine institutional mass participation.Kinetic & Potential Energy: Quantifies real-time momentum vs. spring-band tension for mean-reversion setups.
Shannon Entropy: Measures market disorder to filter out false breakouts during noisy consolidation regimes.
Core Objective: Eliminate false signals during high-entropy regimes while capturing high-conviction momentum expansions.
Core System Mechanics
┌─────────────────────────────────────────────────────────────────┐
│ PRICE & VOLUME INPUTS │
└─────────────────────────────────────────────────────────────────┘
│
┌──────────────────┴──────────────────┐
▼ ▼
┌─────────────────────────┐ ┌─────────────────┐
│ KINEMATIC ENGINE │ │ INFORMATION │
│ │ │ THEORY ENGINE │
│ • Velocity & G-Force │ │ │
│ • Kinetic/Potential E. │ │ • Discrete Bin │
│ • Mass & Impulse │ │ Probabilities │
└────────────┬────────────┘ │ • Shannon │
│ │ Entropy ($S$) │
│ └────────┬────────┘
│ │
└──────────────────┬──────────────────┘
│
▼
┌──────────────────────────────────────────────┐
│ LOW-ENTROPY FILTER ($S \le 0.85$) │
└──────────────────────┬───────────────────────┘
│
┌─────────┴─────────┐
▼ ▼
┌───────────────┐ ┌───────────────┐
│ BUY SIGNAL │ │ SELL SIGNAL │
└───────────────┘ └───────────────┘
Key Metrics & Governing Equations
1. Velocity ($v$) & G-Force Acceleration ($a$)Normalizes price change over volatility (ATR) to measure true speed and rate of velocity change:$$v = \frac{\Delta \text{Close}}{\text{ATR}(20)}$$$$a = v - v_{[1]}$$
2. Kinetic ($E_k$) & Potential Energy ($E_p$)Measures explosive directional fuel versus mean-reversion spring tension:$$E_k = \frac{1}{2} m_{norm} \cdot v^2$$$$E_p = \frac{1}{2} k \cdot \left(\frac{\text{Close} - \text{SMA}(14)}{\text{ATR}(20)}\right)^2$$
3. Shannon Entropy ($S$)Calculates discrete probability distribution across 5 directional Volume-Work bins:$$H(X) = -\sum_{i=1}^{5} p_i \log_2(p_i)$$$$\text{Normalized Entropy } S = \frac{H(X)}{\log_2(5)}$$Signal Matrix & Status ArchitectureMetricCondition / ThresholdState / InterpretationVisual IndicatorVelocity ($v$)$v > 0.5$ / $v < -0.5BBULLISH / Bearish Rate of TravelBlue Plot LineG-Force ($a$)$a > 0$ / $a < 0$
Positive Acceleration / DecelerationOrange Line⚡ Force ($F$)$F > 0.5$ / $F < -0.5
NET Institutional Push🟢 Lime / 🟣 Fuchsia ShapesEntropy ($S$)$S \le 0.85$ vs. $S > 0.85$Orderly Trend vs. High-Chop Noise🟩 Green / 🔴 Red (Dashboard)Impulse ($J$)$J > 0$ & $J > J_{[1]}$Accelerating Bullish Force🟩 Bright Lime$J > 0$ & $J \le J_{[1]}$Fading Bullish Force🟢 Dark Green$J < 0$ & $J < J_{[1]}$Accelerating Bearish Force🔴 Bright Red$J < 0$ & $J \ge J_{[1]}$Fading Bearish Force🟥 Dark RedExecution Rules & Risk Management1.Filter Regime Validation:Information Theory Layer.Verify that Normalized Entropy is below the maximum threshold ($S \le 0.85$). If $S > 0.85$, all directional breakout signals are suppressed.2.Kinematic Alignment Confirmation:
Energy & Impulse Verification.Ensure Velocity ($v > 0.5$) and Acceleration ($a > 0$) align with positive Volume Work and Kinetic Energy exceeds threshold ($E_k > 2.0$).
3.Execution Entry:Main Chart Trigger.
Enter long on explicit BUY label / lime bar highlight. Enter short on explicit SELL label / red bar highlight.
4.Exhaustion & Tension Monitoring:
Exit Mechanics
.Exit position when Kinetic Energy hits extreme exhaustion ($E_k > 3 \times \text{Threshold}$ with inverse acceleration) or Potential Tension ($E_p > 2.5$) signals a mean-reversion SNAP back to spring bands.
Indicator is real time derived and repaint ....
ONLY FOR EDUCATIONAL PURPOSES
NOT A FINANCIAL ADVICE
Open-source script
In true PulseWire spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by PulseWire. Read more in the Terms of Use.
Open-source script
In true PulseWire spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by PulseWire. Read more in the Terms of Use.