Indicator Trading Bots, Built Without Code

RSI compares the size of recent gains to recent losses and squeezes the answer into a number between 0 and 100. Readings under 30 are traditionally called oversold, readings over 70 overbought.

MACD is the gap between a fast and a slow exponential moving average. When the gap widens, momentum is building; when it narrows, momentum is fading. A signal line (an average of MACD itself) and the histogram (the distance between the two) make those changes easier to act on.

Bollinger Bands draw a moving average with a band above and below it, a number of standard deviations away. When the market gets volatile the bands widen; when it goes quiet they squeeze together.

An EMA is an average of recent prices that gives more weight to the latest candles, so it turns faster than a simple moving average (SMA, also available). Price above a rising EMA is the simplest definition of an uptrend there is.

The Stochastic Oscillator shows where the latest close sits within the recent high-low range, from 0 (at the low) to 100 (at the high). The main line is %K and its smoothed version is %D.

ADX measures how strong a trend is, not which way it's going. Readings above 25 suggest a real trend; below 20, a range. The +DI and -DI lines tell you the direction.

Supertrend draws a single line under price in an uptrend and above it in a downtrend, set a multiple of ATR (volatility) away. When price closes through the line, the trend flips.

Ichimoku is a whole system in one indicator: the Tenkan and Kijun lines (short and medium-term balance points) and the cloud formed by Senkou Span A and B (support and resistance projected forward).

Parabolic SAR (stop and reverse) plots dots below price in an uptrend and above it in a downtrend. The dots accelerate toward price as the trend continues, so the level tightens the longer a move runs.

ATR measures how much a market typically moves per candle, in price units. It doesn't care about direction, only size. A rising ATR means the market is getting more active; a falling one means it's calming down.

On-Balance Volume keeps a running total of volume: added on up candles, subtracted on down candles. Real moves have volume behind them, and OBV shows whether it's buyers or sellers doing the volume.

VWAP is the average price weighted by how much traded at each price: the "fair value" line many desks use. Buying below VWAP means you paid less than the average participant.

A divergence is when price and RSI disagree. Bullish divergence: price makes a lower low but RSI makes a higher low, so selling pressure is weakening even as price drops. Bearish divergence is the mirror image at the top.

Smart Money Concepts read market structure: the pattern of swing highs and lows. A Break of Structure (BOS) is price pushing past a previous swing in the trend's direction; a Change of Character (CHOCH) is the first break against it, often the earliest sign a trend is turning.