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.