How does the Indicators selection work?
Technical indicators are mathematical calculations based on the price or volume of a security/contract. By analyzing historical data, technical analysts use indicators to confirm the right price to enter and exit symbols. Examples of common technical indicators include the Relative Strength Index, Stochastics, MACD and Bollinger Bands.
Users can select technical indicators by keying in or selecting the indicators using dropdown buttons to create conditions on various different indicators.
First, start off by searching for an indicator by clicking on the drop down button
Once a user selects an indicator, the ‘Select indicators’ dialog box shows up as below with some sections:
Select Indicator Dialog Box: Each condition in a trading strategy has 3 parts:
1. Indicator - Selection of Technical indicator and its parameters such as RSI, MOM, Supertrend etc.
2. Comparator - A logical comparator such as higher than, lower than, crosses above, crosses below etc.
3. Compare Indicator - Something to compare ‘Indicator’ with, a value such as number, OHLCV etc. or other indicators
On the selection of an indicator, the user will be shown a bunch of parameters filled with appropriate default values which the user can edit. Each indicator has some required parameters and some optional parameters. All parameters have some default value.
Users can put in whatever values they seem appropriate for the indicator to calculate the results.
At times an indicator can have multiple outputs. The user selects the required output and adds a condition to check if the output value is higher/lower than the number mentioned.
Sample strategy conditions examples
Below are a few examples of how a Select indicator condition can be set up
Trigger an ‘BUY' event when the MACD (12, 26, 9) line Crosses Above MACD Signal (12,26,9) line.
Trigger an ‘SELL’ event when the EMA (7) line crosses below SMA(20) line.
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