How does the Indicators selection work?
Technical indicators are mathematical calculations based on the price or volume of a security or contract. By analyzing historical data, technical analysts use indicators to predict future price movements of the securities/contracts. Examples of common technical indicators include 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:
a. Indicator 1 – Selection of Technical indicator and its parameters such as RSI, MOM, Supertrend etc.
b. Comparator - A logical comparator such as higher than, lower than, cross above, cross below etc.
c. Compare Indicator2 - Something to compare Indicator 1 with, a value such as number, OHLCV etc. or other indicator
Parameters
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.
Comparator
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 example:
Below are a few examples of how a Select indicator condition can be set up
Condition 1:
Trigger an event when the ‘signal’ output of the MACD (12, 30, 9) is to be greater than 5.
Condition 2:
Related Articles
Volume Indicators
Introduction Volume analysis helps us to study the number of stocks traded or futures contracts traded during a specific time. This volume analysis is undertaken by using volume indicators. This article will give you a brief understanding of the ...How does Trailing stop loss work?
A trailing stop loss is a type of day trading order that lets you set a maximum value or percentage of loss you can incur on a trade. If the security/instrument price rises or falls in your favor, the stop price moves with it. If the security price ...How 'AND' or 'OR' Logic Connector work?
‘AND’ or ‘OR’ Logic connectors can be used when user wants to combine more than one indicators to form a single entry/exit strategy. You can connect more than one indicator with the help of an ‘AND’ or ‘OR’ connectors. There are 2 kinds of logic ...What is automated live trading & how does it work ?
Trading utilising an automated live trading involves employing a programme to carry out pre-established procedures for entering and terminating deals. The trader or the investor will combine meticulous technical analysis with establishing opening ...How 'Stop Loss' and 'Take Profit' work?
Stop Loss and Take Profit are the orders which helps user to manage their risk and optimize the strategy return. Stop Loss: When a person place an order, it may happen that the trade does not go in his desired direction but moves in an opposite ...