What each indicator in the strategy editor measures, how traders usually read it, and how a rule using it looks in the Lab. Readings are rules of thumb, not trading advice.
Is the market going up, down or sideways, and how strongly?
The average closing price over the last N candles. It smooths out noise so the direction is easier to see.
How it is read: Price above a rising SMA is usually read as an uptrend; common lengths are 20, 50 and 200.
Example ruleIf close price is above SMA 50, buy with all cash
Like the SMA, but recent candles count more, so it reacts faster to new moves.
How it is read: A short EMA crossing above a longer one is a classic trend-change signal.
Example ruleIf EMA 12 is above EMA 26, buy with all cash
A moving average designed to follow price closely with very little lag.
How it is read: Useful when an EMA reacts too slowly; the slope shows the direction.
Example ruleIf close price is above Hull MA 21, buy with all cash
A trailing line placed a multiple of ATR below price in uptrends and above it in downtrends. It flips when price crosses it.
How it is read: Many traders use it both as a trend filter and as a trailing stop.
Example ruleIf close price is above Supertrend (10, 3), buy with all cash
The gap between a fast and a slow EMA (the MACD line), its own average (signal line) and the difference between the two (histogram).
How it is read: MACD above its signal line points to strengthening upward momentum.
Example ruleIf MACD line (12, 26, 9) is above MACD signal, buy with all cash
A set of lines (conversion, base, two leading spans) that show trend, support and resistance at a glance.
How it is read: Price above the cloud formed by the leading spans is usually read as an uptrend.
Example ruleIf close price is above Ichimoku leading span A, buy with all cash
ADX measures how strong a trend is, whatever its direction. +DI and −DI show which side is stronger.
How it is read: ADX above about 25 suggests a trending market; below 20, a range.
Example ruleIf ADX 14 is above 25 and +DI 14 is above −DI 14, buy with all cash
How fast is price moving, and has the move gone too far?
Compares recent gains with recent losses on a 0 to 100 scale.
How it is read: Readings below 30 are often called oversold and above 70 overbought.
Example ruleIf RSI 14 is below 30, buy with all cash; if RSI 14 is above 70, sell everything
Shows where the close sits within the recent high-low range (%K), with a smoothed line (%D).
How it is read: Values under 20 or over 80 mark the low or high end of the recent range.
Example ruleIf Stochastic %K (14, 3, 3) is below 20, buy with all cash
How far price is from its average, relative to its usual deviation.
How it is read: Readings beyond +100 or −100 signal an unusually strong move.
Example ruleIf CCI 20 is below −100, buy with all cash
Similar to the stochastic, on a 0 to −100 scale.
How it is read: Above −20 is near the top of the recent range, below −80 near the bottom.
Example ruleIf Williams %R 14 is below −80, buy with all cash
The percentage change in price over N candles.
How it is read: Positive and rising values show accelerating upward momentum.
Example ruleIf ROC 10 is above 5, buy with all cash
An RSI that also weighs volume, on a 0 to 100 scale.
How it is read: Below 20 or above 80 marks heavy selling or buying pressure.
Example ruleIf MFI 14 is below 20, buy with all cash
How much is the market moving, and is price stretched?
The average size of a candle's range, including gaps. It measures volatility, not direction.
How it is read: Often used to place stops a few ATRs away so they adapt to the market.
Example ruleSet stop loss at 2 × ATR 14 below the entry price
A moving average with bands a number of standard deviations above and below it.
How it is read: Touches of the outer bands show stretched prices; narrow bands often precede big moves.
Example ruleIf close price is below Bollinger lower band (20, 2), buy with all cash
The highest high and lowest low over the last N candles.
How it is read: A close above the upper channel is a classic breakout signal.
Example ruleIf close price is above Donchian upper (20), buy with all cash
The annualized standard deviation of recent returns, in percent.
How it is read: Lets a strategy stand aside when the market is unusually calm or wild.
Example ruleIf Realized volatility % (30 bars) is below 60, buy with all cash
How many standard deviations price is from its recent average.
How it is read: Beyond ±2 is statistically stretched, a common mean-reversion trigger.
Example ruleIf Z-score 20 is below −2, buy with all cash
Who is participating, and what is the mood of the market?
The amount traded during each candle.
How it is read: Moves on high volume are usually taken more seriously than moves on thin volume.
Example ruleIf volume is more than twice the volume from 1 bar ago, buy with all cash
The average price weighted by volume.
How it is read: Price above VWAP means buyers have paid up on average; it is a common fair-value line.
Example ruleIf close price is above VWAP, buy with all cash
The number of open futures contracts on the market, from exchange data.
How it is read: Rising open interest with rising price suggests new money behind the move.
Example ruleIf open interest is above its value 24 bars ago, buy with all cash
A daily 0 to 100 sentiment score for the crypto market.
How it is read: Extreme fear (low values) and extreme greed (high values) are often watched as contrarian signals.
Example ruleIf Fear & Greed index is below 20, buy with all cash
Most strategies combine a trend filter with a momentum or volatility trigger and a stop. Test the idea on several markets, including the synthetic ones with no built-in trend, and check how sensitive it is to its settings before trusting it.
Indicator readings describe the past and do not predict future prices. Backtests are simulations and do not guarantee future results.
No account and no card: 3 backtests a day as a guest, 15 a day with a free account.