Visibility-Graph-Based Relative Strength Indicator for Financial Market Decision-Making
Abstract
This study introduces the Visibility-Graph-Based Relative Strength Index (VGRSI), a causal indicator that selects and implicitly weights price increments using backward natural visibility. Independent parameters specify the aggregation window and the backward visibility range. Two aggregation variants use the magnitudes and counts of positive and negative contributions to produce values on a 0--100 scale. The VGRSI was tested in an automated walk-forward experiment based on 30-day optimisation windows followed by {7-day walk-forward windows}. This study covered DJI30, EUR/USD, and XAU/USD over 503 trading days in 2024--2025. {The VGRSI strategy produced positive cumulative net profits for all three instruments, whereas the tested classical-RSI strategy and the VGRSI variant without visibility selection produced cumulative losses under the same walk-forward procedure and trading conditions. Because the analysis covered only three instruments and one historical period, the results should be treated as preliminary.
Versions
Related
- A7U: Distributed Planck Bundles, Access-Relative Purity, and the Matter-Wave Visibility Bridge
- High-Visibility Energy-Time Franson Interference with Cascaded PPLN and PIC Analyzers
- Differential diffusion effects on buoyancy-driven instabilities of acid–base fronts: the case of a color indicator
- Looking Beyond Visibility: Resolving the Temporal Structure of Continuous-Wave Four-Photon Hong-Ou-Mandel Interference
- Path-Distinguishability Gaps at Fixed Visibility in Noisy Qubit Interferometers
BibTeX
@misc{rak2026visibilitygraphbased,
title = {{Visibility-Graph-Based Relative Strength Indicator for Financial Market Decision-Making}},
author = {Rafał Rak},
howpublished = {arXiv},
year = {2026},
month = oct,
doi = {10.48550/arxiv.2605.01300},
eprint = {2605.01300},
archivePrefix = {arXiv},
url = {https://arxiv.org/abs/2605.01300},
note = {CC BY-NC-ND 4.0},
}
RIS
TY - UNPB
TI - Visibility-Graph-Based Relative Strength Indicator for Financial Market Decision-Making
AU - Rafał Rak
PY - 2026
DA - 2026/10/22
PB - arXiv
DO - 10.48550/arxiv.2605.01300
UR - https://arxiv.org/abs/2605.01300
AB - This study introduces the Visibility-Graph-Based Relative Strength Index (VGRSI), a causal indicator that selects and implicitly weights price increments using backward natural visibility. Independent parameters specify the aggregation window and the backward visibility range. Two aggregation variants use the magnitudes and counts of positive and negative contributions to produce values on a 0--100 scale. The VGRSI was tested in an automated walk-forward experiment based on 30-day optimisation windows followed by {7-day walk-forward windows}. This study covered DJI30, EUR/USD, and XAU/USD over 503 trading days in 2024--2025. {The VGRSI strategy produced positive cumulative net profits for all three instruments, whereas the tested classical-RSI strategy and the VGRSI variant without visibility selection produced cumulative losses under the same walk-forward procedure and trading conditions. Because the analysis covered only three instruments and one historical period, the results should be treated as preliminary.
ER -