/**
* Contradiction Detection
* detectContradictions function
*/
export function detectContradictions(signal, indicators, trendAlignment) {
const contradictions = [];
let contradictionScore = 0; // Min: 0, Max: 4
// If no indicators available, skip (don't calculate contradiction score)
// Return max score (4) to indicate signal cannot be validated
if (!indicators) {
return {
contradictions: ['No technical indicators available - signal cannot be validated'],
contradictionScore: 4, // Max score: 4 (signal should be filtered out)
hasContradictions: true,
severity: 'critical'
};
}
// Track which indicators are actually available for calculation
let hasAnyIndicator = false;
const isBuySignal = signal.signal === 'buy_to_enter' || signal.signal === 'add';
const isSellSignal = signal.signal === 'sell_to_enter';
// 1. Check Bollinger Bands position
if (indicators.bollingerBands && indicators.price) {
hasAnyIndicator = true;
const price = indicators.price;
const bbUpper = indicators.bollingerBands.upper;
const bbLower = indicators.bollingerBands.lower;
const bbMiddle = indicators.bollingerBands.middle;
if (isSellSignal && price > bbMiddle) {
contradictions.push(`SELL signal but price is ABOVE BB middle (bullish position)`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
if (isBuySignal && price < bbMiddle) {
contradictions.push(`BUY signal but price is BELOW BB middle (bearish position)`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
if (isSellSignal && price > bbUpper) {
contradictions.push(`SELL signal but price is ABOVE BB upper (overbought - very bullish)`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
if (isBuySignal && price < bbLower) {
contradictions.push(`BUY signal but price is BELOW BB lower (oversold - very bearish)`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
}
// 2. Check OBV (On-Balance Volume)
if (indicators.obv !== null && indicators.obv !== undefined) {
hasAnyIndicator = true;
if (isSellSignal && indicators.obv > 0 && contradictionScore < 4) {
contradictions.push(`SELL signal but OBV is positive (buying pressure)`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
if (isBuySignal && indicators.obv < 0 && contradictionScore < 4) {
contradictions.push(`BUY signal but OBV is negative (selling pressure)`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
}
// 3. Check MACD Histogram (simplified: +1 point if contradicts)
if (indicators.macd && indicators.macd.histogram !== undefined) {
hasAnyIndicator = true;
const macdHist = indicators.macd.histogram;
if (isSellSignal && macdHist > 0 && contradictionScore < 4) {
const severity = Math.abs(macdHist) > 50 ? 'STRONGLY' : Math.abs(macdHist) > 20 ? '' : 'slightly';
contradictions.push(`SELL signal but MACD histogram is ${severity} positive (${macdHist.toFixed(2)}) - bullish momentum`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
if (isBuySignal && macdHist < 0 && contradictionScore < 4) {
const severity = Math.abs(macdHist) > 50 ? 'STRONGLY' : Math.abs(macdHist) > 20 ? '' : 'slightly';
contradictions.push(`BUY signal but MACD histogram is ${severity} negative (${macdHist.toFixed(2)}) - bearish momentum`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
}
// 4. Check Aroon
if (indicators.aroon) {
hasAnyIndicator = true;
const aroonUp = indicators.aroon.up;
const aroonDown = indicators.aroon.down;
if (isSellSignal && aroonUp > 80 && contradictionScore < 4) {
contradictions.push(`SELL signal but Aroon Up is ${aroonUp.toFixed(0)} (strong uptrend)`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
if (isBuySignal && aroonDown > 80 && contradictionScore < 4) {
contradictions.push(`BUY signal but Aroon Down is ${aroonDown.toFixed(0)} (strong downtrend)`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
}
// 5. Check Trend Alignment
if (trendAlignment) {
hasAnyIndicator = true;
const dailyTrend = trendAlignment.dailyTrend || trendAlignment.trend;
const aligned = trendAlignment.aligned || false;
if (isSellSignal && dailyTrend === 'uptrend' && contradictionScore < 4) {
contradictions.push(`SELL signal but daily trend is UPTREND${aligned ? ' (all timeframes aligned)' : ''}`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
if (isBuySignal && dailyTrend === 'downtrend' && contradictionScore < 4) {
contradictions.push(`BUY signal but daily trend is DOWNTREND${aligned ? ' (all timeframes aligned)' : ''}`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
}
// 6. Check EMA alignment
let emaUptrend = false;
let emaDowntrend = false;
if (indicators.price && indicators.ema20 && indicators.ema50) {
hasAnyIndicator = true;
const price = indicators.price;
const ema20 = indicators.ema20;
const ema50 = indicators.ema50;
if (isSellSignal && price > ema20 && ema20 > ema50 && contradictionScore < 4) {
contradictions.push(`SELL signal but price > EMA20 > EMA50 (uptrend structure)`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
if (isBuySignal && price < ema20 && ema20 < ema50 && contradictionScore < 4) {
contradictions.push(`BUY signal but price < EMA20 < EMA50 (downtrend structure)`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
emaUptrend = price > ema20 && ema20 > ema50;
emaDowntrend = price < ema20 && ema20 < ema50;
}
// 7. Check RSI Divergence
if (indicators.rsiDivergence && indicators.rsiDivergence.divergence) {
hasAnyIndicator = true;
if (isSellSignal && indicators.rsiDivergence.divergence === 'bullish' && contradictionScore < 4) {
contradictions.push(`SELL signal but RSI shows BULLISH divergence`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
if (isBuySignal && indicators.rsiDivergence.divergence === 'bearish' && contradictionScore < 4) {
contradictions.push(`BUY signal but RSI shows BEARISH divergence`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
}
// 8. Check MACD Divergence
if (indicators.macdDivergence && indicators.macdDivergence.divergence) {
hasAnyIndicator = true;
if (isSellSignal && indicators.macdDivergence.divergence === 'bullish' && contradictionScore < 4) {
contradictions.push(`SELL signal but MACD shows BULLISH divergence`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
if (isBuySignal && indicators.macdDivergence.divergence === 'bearish' && contradictionScore < 4) {
contradictions.push(`BUY signal but MACD shows BEARISH divergence`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
}
// 9. Check Parabolic SAR
if (indicators.parabolicSAR && indicators.price) {
hasAnyIndicator = true;
const price = indicators.price;
const sar = indicators.parabolicSAR;
// SAR below price = bullish, SAR above price = bearish
if (isSellSignal && sar < price && contradictionScore < 4) {
contradictions.push(`SELL signal but Parabolic SAR is BULLISH (SAR below price)`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
if (isBuySignal && sar > price && contradictionScore < 4) {
contradictions.push(`BUY signal but Parabolic SAR is BEARISH (SAR above price)`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
}
// 10. Check CCI (Commodity Channel Index)
if (indicators.cci !== null && indicators.cci !== undefined) {
hasAnyIndicator = true;
// CCI > 100 = overbought (bullish strength), CCI < -100 = oversold (bearish weakness)
if (isSellSignal && indicators.cci > 100 && contradictionScore < 4) {
contradictions.push(`SELL signal but CCI is overbought (${indicators.cci.toFixed(2)}) - still has bullish strength`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
if (isBuySignal && indicators.cci < -100 && contradictionScore < 4) {
contradictions.push(`BUY signal but CCI is oversold (${indicators.cci.toFixed(2)}) - still has bearish weakness`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
}
// 11. Check 24h Price Change (only if we haven't reached max score)
if (indicators.priceChange24h !== null && indicators.priceChange24h !== undefined && contradictionScore < 4) {
hasAnyIndicator = true;
if (isSellSignal && indicators.priceChange24h > 0) {
contradictions.push(`SELL signal but 24h price change is POSITIVE (+${indicators.priceChange24h.toFixed(2)}%) - price is rising`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
if (isBuySignal && indicators.priceChange24h < 0) {
contradictions.push(`BUY signal but 24h price change is NEGATIVE (${indicators.priceChange24h.toFixed(2)}%) - price is falling`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
}
// 12. Check Volume Spike/Drop (CRITICAL: Volume contradictions are major red flags)
// Volume spike for SELL = buying pressure (contradicts SELL)
// Volume drop for BUY = low activity (contradicts BUY)
if (indicators.volumeChangePercent !== null && indicators.volumeChangePercent !== undefined && contradictionScore < 4) {
hasAnyIndicator = true;
const volChange = indicators.volumeChangePercent;
// SELL + volume spike >50% = buying pressure contradiction
if (isSellSignal && volChange > 50) {
if (volChange > 100) {
// Critical: Volume spike >100% = strong buying pressure (+2 points)
contradictions.push(`CRITICAL: SELL signal but volume spike +${volChange.toFixed(2)}% (strong buying pressure - CONTRADICTS SELL)`);
contradictionScore = Math.min(contradictionScore + 2, 4); // Max: 4, but +2 for critical
}
else {
// Warning: Volume spike >50% = buying pressure (+1 point)
contradictions.push(`SELL signal but volume spike +${volChange.toFixed(2)}% (buying pressure - CONTRADICTS SELL)`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
}
// BUY + volume drop <-50% = low activity contradiction
if (isBuySignal && volChange < -50) {
if (volChange < -80) {
// Critical: Volume drop <-80% = extremely low activity (+2 points)
contradictions.push(`CRITICAL: BUY signal but volume drop ${volChange.toFixed(2)}% (extremely low activity - CONTRADICTS BUY)`);
contradictionScore = Math.min(contradictionScore + 2, 4); // Max: 4, but +2 for critical
}
else {
// Warning: Volume drop <-50% = low activity (+1 point)
contradictions.push(`BUY signal but volume drop ${volChange.toFixed(2)}% (low activity - CONTRADICTS BUY)`);
contradictionScore = Math.min(contradictionScore + 1, 4); // Max: 4
}
}
}
// Derived conflict flags for stricter filtering
const aroonVsEmaContradiction = (!!indicators?.aroon) &&
((indicators.aroon.down > 80 && emaUptrend) || (indicators.aroon.up > 80 && emaDowntrend));
const stochasticK = Array.isArray(indicators?.stochastic?.k)
? (indicators.stochastic.k[indicators.stochastic.k.length - 1] ?? 0)
: (indicators?.stochastic?.k ?? 0);
const dualOverboughtDetected = (stochasticK >= 90) &&
((indicators?.williamsR ?? -100) > -20)
// CCI > 100 also suggests overbought; include as alternative confirmation
|| ((indicators?.cci ?? 0) > 100 && stochasticK >= 85);
// Ensure score is capped at 4 (max)
contradictionScore = Math.min(contradictionScore, 4);
// If no indicators were actually checked, return max score (4) to indicate signal cannot be validated
if (!hasAnyIndicator) {
return {
contradictions: ['No technical indicators available for validation'],
contradictionScore: 4, // Max score: 4 (signal should be filtered out)
hasContradictions: true,
severity: 'critical'
};
}
return {
contradictions,
contradictionScore,
hasContradictions: contradictions.length > 0,
severity: contradictionScore === 4 ? 'critical' : contradictionScore === 3 ? 'high' : contradictionScore === 2 ? 'medium' : 'low',
aroonVsEmaContradiction,
dualOverboughtDetected
};
}
