/**
* Validation Helpers
* checkNoTradeZone, checkMomentumContradiction functions
*/
/**
* Check No-Trade Zone
* Returns true if price is in exhaustion zone (too close to support/resistance)
*/
export function checkNoTradeZone(signal, indicators, price) {
if (!indicators || !price) {
return { inNoTradeZone: false };
}
const bbLower = indicators.bollingerBands?.lower;
const bbUpper = indicators.bollingerBands?.upper;
const rsi7 = indicators.rsi7;
const macdHist = indicators.macd?.histogram;
// Check if price is too close to BB Lower (within 0.2%)
if (bbLower !== null && bbLower !== undefined && price > 0) {
const distanceToBBLower = ((price - bbLower) / price) * 100;
if (distanceToBBLower < 0.2 && distanceToBBLower >= 0) {
// Price is within 0.2% of BB Lower - exhaustion zone for SELL
if (signal.signal === 'sell_to_enter') {
return {
inNoTradeZone: true,
reason: `Price within 0.2% of BB Lower (exhaustion zone, momentum window too narrow)`,
distance: distanceToBBLower
};
}
}
}
// Check if price is too close to BB Upper (within 0.2%)
if (bbUpper !== null && bbUpper !== undefined && price > 0) {
const distanceToBBUpper = ((bbUpper - price) / price) * 100;
if (distanceToBBUpper < 0.2 && distanceToBBUpper >= 0) {
// Price is within 0.2% of BB Upper - exhaustion zone for BUY
if (signal.signal === 'buy_to_enter' || signal.signal === 'add') {
return {
inNoTradeZone: true,
reason: `Price within 0.2% of BB Upper (exhaustion zone, momentum window too narrow)`,
distance: distanceToBBUpper
};
}
}
}
// Check RSI(7) < 40 + MACD Hist > 0 (momentum exhaustion for SELL)
if (rsi7 !== null && rsi7 !== undefined &&
macdHist !== null && macdHist !== undefined) {
if (rsi7 < 40 && macdHist > 0 && signal.signal === 'sell_to_enter') {
return {
inNoTradeZone: true,
reason: `RSI(7) ${rsi7.toFixed(1)} < 40 + MACD Hist ${macdHist.toFixed(2)} > 0 (momentum exhaustion, potential reversal)`
};
}
// Check RSI(7) > 60 + MACD Hist < 0 (momentum exhaustion for BUY)
if (rsi7 > 60 && macdHist < 0 && (signal.signal === 'buy_to_enter' || signal.signal === 'add')) {
return {
inNoTradeZone: true,
reason: `RSI(7) ${rsi7.toFixed(1)} > 60 + MACD Hist ${macdHist.toFixed(2)} < 0 (momentum exhaustion, potential reversal)`
};
}
}
return { inNoTradeZone: false };
}
/**
* Check Momentum Contradiction
* Returns penalty percentage if MACD histogram contradicts signal direction
*/
export function checkMomentumContradiction(signal, indicators) {
if (!indicators || !indicators.macd ||
indicators.macd.histogram === null ||
indicators.macd.histogram === undefined) {
return 0;
}
const macdHist = indicators.macd.histogram;
const isBuySignal = signal.signal === 'buy_to_enter' || signal.signal === 'add';
const isSellSignal = signal.signal === 'sell_to_enter';
// MACD Histogram positive = bullish momentum, negative = bearish momentum
// If signal is SELL but histogram is positive (or vice versa) = contradiction
if (isSellSignal && macdHist > 0) {
// SELL signal but bullish momentum (histogram positive)
// Stronger contradiction if histogram is significantly positive
if (macdHist > 30) {
return 0.20; // 20% confidence penalty for strong contradiction
}
else if (macdHist > 10) {
return 0.15; // 15% penalty for moderate contradiction
}
return 0.10; // 10% penalty for weak contradiction
}
else if (isBuySignal && macdHist < 0) {
// BUY signal but bearish momentum (histogram negative)
// Stronger contradiction if histogram is significantly negative
if (macdHist < -30) {
return 0.20; // 20% confidence penalty for strong contradiction
}
else if (macdHist < -10) {
return 0.15; // 15% penalty for moderate contradiction
}
return 0.10; // 10% penalty for weak contradiction
}
return 0; // No contradiction
}
