Applying RVF, VDI, MA, ORES and the combined TPR to the ticker AMZN

An individual ticker like AMZN behaves fundamentally differently intraday from the ES.

At SPX Direction, we have rebuilt the entire framework from scratch for Amazon (AMZN) — based on how it actually trades. The original SPX Direction algorithm was designed specifically for ES (and by extension SPX / SPY). We are also rolling out our algorithm for Amazon, ahead of schedule.

In future updates, these will be rolled out for the MAG7 stocks individually, but please note the recommended thresholds will be slightly different for individual stocks relative to ES.

Each of the individual MAG7 stocks (AAPL, TSLA, MSFT, META, NVDA, AMZN, GOOGL) behave differently than ES.

🧠 FIRST — What AMZN Actually Does (Key Observations)

From volatility + range behavior:

Daily ATR ≈ $4–6 range (Barchart.com)
Intraday:
- Frequent $1–$2 impulse legs
- Sharp liquidity-driven spikes
- Strong mean reversion after failed moves
Higher implied volatility (~30–40% range) → more gamma-driven bursts (Market Chameleon)

⚠️ CORE TRUTH ABOUT AMZN

AMZN is a momentum + liquidity spike instrument

Moves are faster
Fakeouts are more violent
Persistence is less reliable than ES

🧠 WHAT CHANGES IN YOUR MODEL

Compared to ES:

Factor	ES	AMZN
VDI	Persistence	Spike + follow-through
MA	Smooth build	Sharp bursts
RVF	Stable	Must spike
ORES	Moderate importance	VERY important
Chop	Slow	Violent + deceptive

🎯 AMZN — METRIC BENCHMARKS (RECALIBRATED)

🔵 1. RVF (AMZN)

Interpretation

RVF	Meaning
< 1.05	Dead / fake moves
1.05–1.15	Weak participation
1.15–1.30	Tradeable
> 1.30	REAL move
> 1.50	Institutional + gamma

🔥 Key Insight

AMZN needs volume spikes, not just elevated volume

✅ Trade Filter

ONLY trade if RVF ≥ 1.15

Prefer ≥ 1.30

❌ Do Not Trade

RVF < 1.15

🔵 2. VDI (AMZN)

Interpretation

VDI	Meaning
< 0.50	Chop
0.50–1.00	Weak move
1.00–1.50	Strong move
> 1.50	Momentum spike
> 2.00	Exhaustion risk

🔥 Key Insight

AMZN does NOT build slowly — it jumps into displacement

✅ Trade Filter

VDI ≥ 1.00

AND

must hold ≥ 2 candles

❌ Fakeout Signal

VDI spikes > 1.2 in 1 candle

AND collapses next candle

🔵 3. MA (Momentum Acceleration — AMZN)

Interpretation

MA	Meaning
< 0.0003	No momentum
0.0003–0.0006	Build
0.0006–0.0012	Strong
> 0.0012	Explosive
> 0.0020	Exhaustion

🔥 Key Insight

AMZN = impulse-driven momentum

You WANT:

Sudden expansion
THEN continuation

✅ Trade Filter

MA ≥ 0.0006

AND

not reversing immediately

❌ Chop Signal

MA flipping signs within 2 candles

🔵 4. ORES (AMZN — VERY IMPORTANT)

Interpretation

ORES	Meaning
< 0.90	Weak open
0.90–1.10	Neutral
1.10–1.30	Strong
> 1.30	HIGH conviction
> 1.50	Expansion day

🔥 Key Insight

AMZN’s best days start with aggressive opens

✅ Trade Filter

ORES ≥ 1.10

❌ Avoid

ORES < 0.90

🎯 5. TPS (Combined Score — AMZN)

🔧 Weighting (AMZN specific)

VDI = 30%

RVF = 30%

MA = 25%

ORES = 15%

Why:

AMZN = flow + momentum driven
Open matters less after first 30 min

📊 Score Interpretation

TPS	Meaning
< 0.55	Chop
0.55–0.65	Weak
0.65–0.75	Tradeable
0.75–0.85	Strong
> 0.85	A+ move

🧠 ENVIRONMENT DETECTION (AMZN)

🔵 TREND ENVIRONMENT

VDI ≥ 1.00

AND

RVF ≥ 1.30

AND

MA ≥ 0.0006

👉 Moves extend fast

🟡 TRANSITION

ORES ≥ 1.10

BUT

VDI not sustained yet

AND

RVF rising

👉 Breakout forming

❌ CHOP (MOST IMPORTANT)

VDI < 0.50

AND

MA flipping

AND

RVF < 1.15

👉 DO NOT TRADE

🚫 STRICT “DO NOT TRADE” CONDITIONS (AMZN)

This is where most traders lose money.

❌ Absolute No Trade

TPS < 0.65

RVF < 1.15

VDI not sustained

❌ Hidden Chop (danger zone)

VDI between 0.5–1.0

AND

MA inconsistent

👉 Appears as trend, but is indeed chop, as revealed by the SPX Direction parameters

🔥 REAL MOVE vs FAKEOUT (AMZN)

✅ REAL MOVE

VDI ≥ 1.00 sustained

AND

RVF ≥ 1.15

AND

MA ≥ 0.0006 and holding

Price:

Strong body candles
Small wicks
Pullbacks shallow

❌ FAKEOUT

VDI spike + immediate collapse

MA spike then flat

RVF < 1.15

Price:

Long wicks
Break → immediate reversal

🧠 EXECUTION FRAMEWORK (AMZN)

✅ WHEN TO TRADE

TPS ≥ 0.65

AND

RVF ≥ 1.15

AND

VDI ≥ 1.00

AND

MA ≥ 0.0006

🟢 LONG

Price above VWAP

VDI ≥ +1.00

MA rising

Entry:

Break of 5m high after pullback

🔴 SHORT

Price below VWAP

VDI ≤ -1.00

MA negative

🛑 EXIT

VDI < 0.70

MA flattens

RVF drops

+$1 move achieved

💰 TARGETS

Base: $0.80–$1.20
Extended: $1.50–$2.00

🧠 FINAL MENTAL MODEL (AMZN)

AMZN is not about “steady trends”
It is about capturing explosive, high-participation moves

🔑 One-Line Rule

Only trade AMZN when volume spikes, price expands away from VWAP, and momentum follows through — otherwise stay out