Technical Indicators Guide

SMA

Simple Moving Average. Shows smoothed mean over N periods. Fast/slow crossing suggests directional bias shifts.

Common setup 10 / 20 / 50 / 200

Strength Good for trend baseline.

Weakness Lags during sharp acceleration.

EMA

Exponential Moving Average gives recent price more weight than SMA and reacts faster to trend changes.

Common setup 9 / 21 / 55

Strength Better responsiveness to momentum shift.

Weakness Can overreact to noise.

WMA

Weighted Moving Average assigns more weight to recent price. It reacts faster than SMA while remaining smoother than raw price.

Common setup 20 / 50

Strength Less lag than SMA for short trend bias.

Weakness Still whipsaws in choppy ranges; confirm with volatility filters.

VWMA

Volume Weighted Moving Average weights price by volume. It highlights moves backed by participation and downplays low-volume noise.

Default 20

Tip Compare VWMA with VWAP and structure to separate real demand from thin liquidity.

KAMA

Kaufman Adaptive Moving Average adjusts smoothing using efficiency ratio. It reduces noise in ranges and reacts faster in trends.

Tip Keep parameter rules stable; frequent retuning destroys comparability.

HMA

Hull Moving Average is a low-lag moving average built from weighted averages. It aims to stay smooth while reacting quickly.

Tip Use as a trend filter and trailing reference, not as a standalone entry trigger.

MACD

Histogram and signal line difference from two EMAs. Useful for trend transitions and momentum spread.

Common setup 12/26/9

Tip Use with 3-minute threshold logic only for confirmation, not entry alone.

RSI

Measures price change speed and strength. Overbought and oversold are context dependent in crypto, especially on short frames.

Default 14

Action point Short-term divergence is more meaningful than fixed thresholds.

Stoch RSI

RSI converted to stochastic form. Better for detecting quick exhaustion in momentum bursts.

Common setup 14, 3, 3

Action point Converge with price structure and VWAP before execution.

MFI

Money Flow Index adds volume into RSI logic. Useful to verify whether moves are backed by participation.

Tip Weak money flow during strong candles often flags exhaustion.

Stochastic Oscillator

Compares close location to recent range. Useful for spotting short-term exhaustion and mean-reversion setups.

Common setup 14, 3, 3

Caution In strong trends, treat oscillator signals as timing tools, not reversal guarantees.

Williams %R

Stochastic-style momentum gauge scaled as %R. It reacts fast; avoid using it without trend and level context.

Default 14

Tip Divergence and failed swings near boundaries tend to be more useful than single ticks.

CCI

Deviation oscillator around a moving mean. Helps detect impulse extremes and momentum regime shifts.

Default 20

Caution Crypto can extend; confirm with structure and volatility filters.

ROC

Rate of Change measures percent momentum over N periods. Useful for spotting acceleration and fading quickly.

Default 12

Tip Prioritize slope changes and divergence over absolute levels.

ATR

Average True Range measures raw volatility. Higher ATR implies bigger stop-loss caution.

Tip During macro release windows, tighten signal confidence thresholds.

Bollinger Bands

Moving-average band with deviation. Useful to read squeeze and expansion cycles.

Default 20, 2

Caution Band touch alone is not a directional entry.

Keltner Channel

EMA-centered channel using ATR bands. Helps separate sustained trend from short volatility noise.

Use point Compare with Bollinger for contraction/expansion reliability.

Standard Deviation

Volatility measure around a mean. Useful for framing dispersion when combined with trend and volume.

Tip Prefer regime comparison (quiet vs active) over a single fixed threshold.

Choppiness Index

Regime gauge for trend vs range. Higher choppiness suggests ranging conditions and slower follow-through.

Action Reduce breakout confidence when choppiness stays elevated.

Squeeze (BB/KC)

Compression concept using Bollinger Bands and Keltner Channel. A squeeze can precede expansion, not direction by itself.

Caution Wait for structure break and volume confirmation before execution.

ADX

Trend strength indicator. High value means trend exists, not trend direction.

Action Combine with EMA direction and higher-timeframe structure.

VWAP

Volume-weighted average price across session. Helps locate fair-value zones intraday.

Action Useful for mean-reversion context when price drifts far from VWAP.

Ichimoku Cloud

Multi-line framework for momentum and support zones in one chart. Interpretation is sensitive to parameter design.

Tip Keep period settings stable; changing too often makes backtests hard to compare.

OBV

On-balance volume accumulates buying/selling pressure via volume change direction.

Use with Volume trend and candle body confirmation.

Parabolic SAR

Stops and trailing points based on acceleration factors. Works well in clean trends; false flips in chop.

Order Book Imbalance

Exchange depth imbalance can improve fill timing and execution risk filtering when available.

Anchored VWAP

VWAP anchored from a chosen event or pivot. Useful for mapping fair-value zones around key moves.

Caution Keep anchor rules consistent; frequent re-anchoring breaks comparability.

Chaikin Money Flow (CMF)

Volume-weighted accumulation/distribution over a window. It helps detect whether participation supports direction.

Default 20

Tip Sustained shifts matter more than one-bar spikes.

Accumulation/Distribution (A/D)

Cumulative flow measure using price location within the bar and volume. Helpful for divergence when price stalls.

Use with range boundaries and break confirmation.

Chandelier Exit

ATR-based trailing exit line below/above extremes. Primarily used for risk control and trend holding.

Common setup 22, 3

Tip Treat as exit logic; entries should come from structure and signal rules.

Vortex Indicator

Trend regime indicator based on positive/negative movement relationships. Crossings can mark regime shifts.

Default 14

Use with ADX and structural highs/lows to reduce whipsaw.

Aroon

Time-since-high/low framework for trend detection. Helps distinguish emerging trend from range decay.

Default 25

Tip High Aroon Up with low Aroon Down often aligns with directional persistence.

Open Interest (OI)

Tracks outstanding derivatives positions. Rising OI with trend can confirm participation; falling OI can signal unwind.

Funding Rate

Perpetual swap fee between longs and shorts. Extreme funding often implies crowded positioning and reversal risk.

CVD (Volume Delta)

Cumulative net market buy vs sell volume. Divergence from price can hint at absorption or hidden pressure.

Liquidation Clusters

Liquidation levels concentrate liquidity. Treat as a risk map: sweeps often happen before reversal, not after confirmation.

Long/Short Ratio (Accounts)

Ratio of long vs short accounts. Useful for crowding and positioning bias, but not a timing signal alone.

Caution Extremes can persist; combine with funding, OI change, and price structure.

Perp Basis (Premium Index)

Difference between perpetual and spot price. Persistent premium/discount can reflect positioning and funding pressure.

Caution Definitions vary by exchange; treat as context, not a standalone entry trigger.

Supertrend

ATR-based trailing trend filter. Useful for regime classification; avoid using it alone in choppy ranges.

Donchian Channel

High/low breakout channel. Helps define range boundaries and trend breaks with clear structure.

Pivot Points

Static reference levels derived from prior session. Useful for reaction mapping and mean-reversion risk control.

Volume Profile

Volume distribution by price. High-volume nodes mark value areas; low-volume gaps often act as fast-move zones.