Geometric shapes hidden inside price charts are consistently beating traditional financial indicators at predicting market moves.
A trading strategy using the Visibility Graphs Relative Strength Index generated significant profits across three different asset classes. This method analyzes the abstract geometric structure of price fluctuations rather than standard momentum or volume metrics. Traders usually rely on mathematical averages and historical patterns to forecast the future. This discovery reveals that the geometric connectivity of data points contains predictive information that the market has ignored. Understanding the physical shape of a trend may be more valuable than calculating its statistical probability.
Visibility graphs can make money in financial markets
arXiv · 2605.01300
Traditional technical analysis indicators, although widely used by market participants, are often not sufficiently effective. We propose the Visibility Graphs Relative Strength Index (VGRSI), based on backward visibility relations in the price of a financial instrument. Rescaled to the 0--100 range, it can generate profitable trading signals. The performance of the indicator was evaluated using an automated trading strategy based on a 30-day optimisation window and a 7-day test window for three