📊Technical Indicators

This section introduces the categories of technical indicators supported in strategies, explains how they are used to derive signals from market data. Indicators provide structured inputs to strategy.

Trading indicators are grouped into a few widely accepted categories. The sections below outline their purpose and how the currently supported indicators can be used in strategies.

You do not need to use indicators from every category; most strategies rely on a small subset chosen to match their time horizon and market behavior.

Standard categories include:

1. Trend Indicators

Used to identify the direction and strength of a trend.

Typical questions they answer: Is the market trending up, down, or sideways?

Common examples:

• Moving Averages (SMA, EMA, WMA)

• MACD

• ADX

• Ichimoku Cloud

• Parabolic SAR

2. Momentum Indicators

Measure the speed of price movement and potential exhaustion.

Typical questions they answer: Is the move strong or weakening?

Common examples:

• RSI

• Stochastic Oscillator

• CCI

• Momentum

• Rate of Change (ROC)

3. Volatility Indicators

Measure how much price fluctuates, not direction.

Typical questions they answer: How risky or unstable is the current market?

Common examples:

• ATR

• Bollinger Bands

• Keltner Channels

• Standard Deviation

• Donchian Channels

4. Volume Indicators

Analyze trading activity and participation.

Typical questions they answer: Is the move supported by real participation?

Common examples:

• Volume

• On-Balance Volume (OBV)

• VWAP

• Accumulation / Distribution

• Money Flow Index (MFI)

5. Oscillators (Range / Mean-Reversion)

Often a subset of momentum, but commonly treated separately.

Typical questions they answer: Is the asset overbought or oversold?

Common examples:

• RSI

• Stochastic

• Williams %R

• Ultimate Oscillator

6. Support & Resistance Indicators

Help identify price levels of interest.

Typical questions they answer: Where might price react or reverse?

Common examples:

• Pivot Points

• Fibonacci Retracements

• Donchian Channels

• Volume Profile

7. Pattern & Structure Indicators

Detect repeating price behaviors or formations.

Typical questions they answer: Is a known behavioral pattern forming?

Common examples:

• Candlestick patterns (engulfing, doji, hammer)

• Chart patterns (flags, triangles, head & shoulders)

• Fractals

• Market structure breaks

8. Breadth & Market-Wide Indicators

Common examples:

• Advance / Decline line

• New highs vs lows

• Higher higher vs Lower highs

• Lower lows vs Higher Lows

• Put/Call ratio

Indicators provide structured inputs to strategies and do not execute actions or make decisions on their own.