This page provides a structured reference for widely used technical indicators and analytical tools. It focuses on definitions, interpretation context, and common pitfalls (e.g., timeframe effects and repainting), rather than promotional claims.
The indicators below are commonly referenced because they provide distinct informational lenses: momentum (RSI), trend/momentum crossover (MACD), volatility envelopes (Bollinger Bands), and volume-at-price structure (Volume Profile).
RSI is a bounded oscillator that summarizes recent gains vs. losses over a lookback window. It is often used to describe momentum regimes, not as a standalone reversal guarantee.
MACD compares fast and slow moving averages and optionally includes a signal line and histogram. It is frequently interpreted as a trend/momentum alignment tool.
Bollinger Bands model dispersion around a moving average using a volatility band (often standard deviation). They are commonly used to describe compression/expansion regimes and relative positioning.
Volume Profile visualizes traded volume distribution along the price axis for a selected range. It helps identify high-activity price areas and low-liquidity zones.
A practical way to index indicators is by the market property they approximate. This taxonomy improves consistency when comparing signals across symbols and timeframes.
Smoothing transforms that reduce noise and highlight directional drift.
Dispersion-based envelopes used for compression/expansion context.
Bounded indicators used to characterize momentum regimes and swings.
Volume series and volume-at-price views for activity concentration.
Measures of underlying participation beyond a single instrument.
Rule-based recognition of repeated structures (use with caution).
Script-based indicators allow repeatable logic and parameter transparency. Use scripting to standardize definitions, build alerts, and document methodology.
Note: Example code is illustrative. Actual indicator behavior depends on timeframe, symbol liquidity, and user-defined parameters.
Indicators are transformations of historical series. Their signals are not universal facts and should be evaluated within market structure. The notes below highlight common sources of misunderstanding.
The same indicator can produce different readings across timeframes due to sampling and noise. Higher timeframes often reduce variance but react more slowly; lower timeframes react faster but can be noisier.
Some scripts can change past values after new bars form. To assess, use bar-by-bar replay and observe whether historical signals shift. Avoid future-looking references when building research-grade indicators.
Volume and session-based tools (e.g., profiles) depend on the selected range, session boundaries, and venue rules. Interpret results alongside the chosen context.
An indicator reading is an observation, not a trade instruction. Use confirmation, risk constraints, and consistent evaluation methodology.
This page is a general reference and does not provide financial advice.