Use Technical Indicators
Implement RSI, MACD, moving averages, and other indicators in your strategies using natural language.
Key Technical Indicators
Moving Averages
Highlight price trends by smoothing out daily fluctuations. For example, a Golden Cross (50-day above 200-day) is often viewed as a potential trend shift.
RSI
Measures momentum on a 0–100 scale. Below 30 is commonly considered oversold, above 70 overbought.
MACD
Tracks momentum through moving average relationships. Often viewed as bullish when MACD crosses above its signal line.
Bollinger Bands
Provide dynamic support and resistance levels based on volatility. Prices approaching bands may indicate market extremes.
How to Use Indicators
1
Choose Your Indicators
Start with 2–3 complementary indicators: moving averages for trend, RSI for momentum, and volume for confirmation.
2
Set Clear Rules
Define conditions explicitly: “Buy when 20-day MA crosses above 50-day MA AND RSI is below 60.”
3
Test Your Combinations
Backtest indicator combinations to understand how they might behave under different market conditions.
Example Indicator Combinations
Triple Confirmation
“Buy when price above 50-day MA, RSI below 60, and MACD turns bullish.” Designed to add layers of confirmation.
Trend + Momentum
“Buy on moving average crossover with volume confirmation.” A common trend-following approach.
Mean Reversion
“Buy when RSI below 30 and price touches lower Bollinger Band.” Often applied in sideways markets.
Breakout System
“Buy when price breaks above Bollinger Bands with 2x volume.” Seeks to capture potential breakout moves.
Common Indicator Settings
Moving Averages
20/50/200-day periods for short, medium, and long-term analysis. Golden Cross (50 above 200) is one common signal.
RSI Settings
Standard 14-period with 30/70 thresholds. Some traders use 20/80 in trending markets.
MACD Parameters
12/26/9 standard settings. Focus on crossovers and histogram direction.
Market-Specific Applications
1
Trending Markets
Moving averages, MACD, and ADX are often used to evaluate trends with longer periods.
2
Ranging Markets
RSI, Stochastic, and Bollinger Bands can be used to identify overbought or oversold conditions.
3
Volatile Markets
ATR for risk assessment, Bollinger Bands for dynamic ranges, and volume indicators for confirmation.
Get Started
Implement Indicators
Start applying technical indicators in your strategies. Tell our AI which indicators you want and it will handle the setup.
Next Steps
Strategy Construction
Learn how to build complete trading strategies using technical indicators.
Backtesting
Test your indicator-based strategies on historical data before using them live.
Beginner Strategies
See how technical indicators are applied in beginner-friendly strategies.
Risk Management
Use ATR and other indicators to help manage trading risk.
⚠️ Trading involves risk, including the possible loss of capital. eZorro does not guarantee profits or eliminate the risk of trading losses.