Technical Indicator Glossary

Quick reference guide for all technical indicators available in Kelor.

Moving Averages

SMA (Simple Moving Average)

Type: Trend indicator
Purpose: Identifies trend direction and support/resistance
Default Period: 20, 50, or 200
Best For: Swing/position trading, clear trends
Signal: Price above = bullish, below = bearish

EMA (Exponential Moving Average)

Type: Trend indicator
Purpose: Faster-reacting trend identification
Default Period: 12, 20, 26, 50
Best For: Day trading, quick trend changes
Signal: Same as SMA but reacts faster

WMA (Weighted Moving Average)

Type: Trend indicator
Purpose: Balance between SMA and EMA
Default Period: 20
Best For: Medium-term trading
Signal: Similar to SMA/EMA, medium speed

Momentum Oscillators

RSI (Relative Strength Index)

Type: Momentum oscillator
Range: 0-100
Default Period: 14
Overbought: Above 70
Oversold: Below 30
Best For: Reversal trading, divergence spotting
Key Signal: Divergence with price = potential reversal

MACD (Moving Average Convergence Divergence)

Type: Trend + momentum indicator
Components: MACD line, Signal line, Histogram
Default Periods: 12, 26, 9
Best For: Trend following, momentum shifts
Key Signal: MACD crosses Signal line

Stochastic Oscillator

Type: Momentum oscillator
Range: 0-100
Default Period: 14 (K), 3 (D)
Overbought: Above 80
Oversold: Below 20
Best For: Short-term trading, range trading
Key Signal: %K crosses %D in extreme zones

CCI (Commodity Channel Index)

Type: Momentum oscillator
Range: Unbounded (typically -300 to +300)
Default Period: 20
Overbought: Above +100
Oversold: Below -100
Best For: Cyclical trends, volatile assets
Key Signal: Crosses above/below ±100

Volatility Indicators

Bollinger Bands

Type: Volatility + overbought/oversold
Components: Upper, Middle, Lower band
Default Period: 20 (SMA), 2 (Std Dev)
Best For: Range trading, breakout trading
Key Signals:
- Squeeze: Bands narrow = breakout coming
- Bounce: Price at bands = potential reversal
- Walk: Price hugs band = strong trend

ATR (Average True Range)

Type: Volatility measurement
Range: Absolute price units
Default Period: 14
Best For: Stop-loss placement, position sizing
Usage: Not a trading signal, use for risk management
Formula: Stop distance = Entry ± (ATR × 2)

Volume Indicators

OBV (On-Balance Volume)

Type: Cumulative volume indicator
Range: Any positive/negative number
Best For: Spotting accumulation/distribution
Key Signal: Divergence with price
Interpretation:
- Rising OBV = Accumulation (bullish)
- Falling OBV = Distribution (bearish)

MFI (Money Flow Index)

Type: Volume-weighted momentum
Range: 0-100
Default Period: 14
Overbought: Above 80
Oversold: Below 20
Best For: Volume-confirmed reversals
Key Feature: Like RSI but includes volume

VWAP (Volume Weighted Average Price)

Type: Intraday benchmark
Calculation: Resets daily
Best For: Day trading, institutional levels
Interpretation:
- Price above VWAP = Bullish
- Price below VWAP = Bearish
- Price at VWAP = Fair value

Trend Analysis Tools

ADX (Average Directional Index)

Type: Trend strength indicator
Range: 0-100
Default Period: 14
Components: ADX, +DI, -DI
Interpretation:
- ADX below 20: No trend (ranging)
- ADX 20-25: Weak trend
- ADX 25-50: Strong trend
- ADX above 50: Very strong trend
Key Usage: Filter trending vs. ranging markets

Parabolic SAR (Stop and Reverse)

Type: Trend + stop-loss indicator
Display: Dots above/below price
Default: AF step = 0.02, AF max = 0.20
Interpretation:
- Dots below price = Uptrend
- Dots above price = Downtrend
Key Signal: Dots flip = trend reversal
Best For: Trailing stops, riding trends

Pivot Points

Type: Support/Resistance levels
Calculation: From previous period's H/L/C
Components: PP, R1-R3, S1-S3
Best For: Day trading, intraday levels
Usage:
- Price above PP = Bullish bias
- Price below PP = Bearish bias
- Trade bounces at R/S levels

Fibonacci Retracement

Type: Support/Resistance levels
Key Levels: 23.6%, 38.2%, 50%, 61.8%, 78.6%
Best For: Finding pullback entries in trends
Golden Ratio: 61.8% (most reliable)
Usage: Draw from swing low to high (or vice versa)

Ichimoku Cloud

Type: Complete trend system
Components:
- Tenkan-sen: 9-period conversion line
- Kijun-sen: 26-period base line
- Senkou Span A/B: The cloud
- Chikou Span: Lagging span
Interpretation:
- Price above Cloud = Uptrend
- Price below Cloud = Downtrend
- Price in Cloud = No trend
Best For: Comprehensive trend analysis

Quick Comparison Tables

By Trading Style

Style	Recommended Indicators
Day Trading	VWAP, 9 EMA, Stochastic, Pivot Points, Volume
Swing Trading	20/50 SMA, RSI, MACD, Bollinger Bands, Fibonacci
Position Trading	50/200 SMA, Weekly MACD, Ichimoku, ATR

By Market Condition

Condition	Best Indicators
Trending	MA, MACD, Parabolic SAR, ADX (above 25)
Ranging	RSI, Stochastic, Bollinger Bands, S/R
High Volatility	ATR, Bollinger Bands, Volume
Low Volatility	Bollinger Squeeze, ADX (below 20)
Breakout	Bollinger Bands, Volume, ATR, ADX

By Purpose

Purpose	Use These Indicators
Identify Trend	SMA, EMA, MACD, Ichimoku
Time Entries	RSI, Stochastic, MFI
Set Stops	ATR, Parabolic SAR, Bollinger Bands
Confirm Moves	Volume, OBV, MFI
Find Levels	Pivot Points, Fibonacci, S/R
Measure Volatility	ATR, Bollinger Bands
Spot Reversals	Divergence (RSI, MACD, OBV)

Common Indicator Signals

Buy Signals

Indicator	Buy Signal
MA	Price crosses above MA
RSI	Crosses above 30 from oversold
MACD	MACD crosses above Signal line
Stochastic	%K crosses above %D below 20
Bollinger	Price bounces off lower band
OBV	Bullish divergence
ADX	+DI crosses above -DI with ADX above 25
Parabolic SAR	Dots flip to below price
Ichimoku	Price breaks above cloud

Sell Signals

Indicator	Sell Signal
MA	Price crosses below MA
RSI	Crosses below 70 from overbought
MACD	MACD crosses below Signal line
Stochastic	%K crosses below %D above 80
Bollinger	Price bounces off upper band
OBV	Bearish divergence
ADX	-DI crosses above +DI with ADX above 25
Parabolic SAR	Dots flip to above price
Ichimoku	Price breaks below cloud

Indicator Settings Reference

Standard Periods

Indicator	Default Period	Alternative Periods
SMA	20, 50, 200	10, 100
EMA	12, 26, 50, 200	9, 20
RSI	14	9, 21
MACD	12, 26, 9	5, 35, 5 (faster)
Stochastic	14, 3	5, 3 (faster)
Bollinger	20, 2	20, 2.5 (wider)
ATR	14	7, 20
ADX	14	7, 20
CCI	20	14, 30
MFI	14	10, 20

Note: Shorter periods = More signals, more noise. Longer periods = Fewer signals, more reliable.

Indicator Combinations Cheat Sheet

Beginner Combo

Trend: 50 SMA
Momentum: RSI
Volume: Volume bars

Trend Rider Combo

Trend: 20 EMA
Momentum: MACD
Risk: ATR

Range Trader Combo

Volatility: Bollinger Bands
Momentum: RSI
Levels: Support/Resistance

Breakout Hunter Combo

Volatility: Bollinger Bands (squeeze)
Volume: Volume
Trend: ADX
Risk: ATR

Divergence Player Combo

Price: Chart
Momentum: RSI
Volume: OBV
Levels: Support/Resistance

Day Trader Combo

Benchmark: VWAP
Trend: 9 EMA
Volume: Volume
Levels: Pivot Points

Common Terms Explained

Divergence

When price and indicator move in opposite directions. Signals potential reversal.

Bullish: Price lower lows, indicator higher lows
Bearish: Price higher highs, indicator lower highs

Crossover

When one line crosses another (e.g., MACD crosses Signal line, price crosses MA).

Overbought

When an oscillator reaches high levels (RSI above 70), suggesting price may be too high.

Oversold

When an oscillator reaches low levels (RSI below 30), suggesting price may be too low.

Lagging Indicator

Indicator that follows price (e.g., MA, MACD). Confirms trends but slow to signal changes.

Leading Indicator

Indicator that may predict price changes (e.g., RSI divergence, OBV). Faster but more false signals.

Confluence

When multiple indicators or levels align (e.g., Fib 61.8% at support + RSI oversold).

Squeeze

When Bollinger Bands narrow significantly. Indicates low volatility before expansion.

Golden Cross

When short-term MA crosses above long-term MA (e.g., 50 crosses above 200). Bullish.

Death Cross

When short-term MA crosses below long-term MA (e.g., 50 crosses below 200). Bearish.

Next Steps

Explore each indicator: Click through the detailed guides in previous sections
Practice on charts: Open Kelor and apply indicators to historical data
Build a strategy: Choose 2-4 complementary indicators and define your rules
Backtest: Test your strategy on past data before going live
Paper trade: Practice with virtual money first
Go live: When consistent, trade with real capital

Remember: The best indicator is the one you understand and can use consistently. Start simple, master the basics, then expand your toolkit.

Moving Averages​

SMA (Simple Moving Average)​

EMA (Exponential Moving Average)​

WMA (Weighted Moving Average)​

Momentum Oscillators​

RSI (Relative Strength Index)​

MACD (Moving Average Convergence Divergence)​

Stochastic Oscillator​

CCI (Commodity Channel Index)​

Volatility Indicators​

Bollinger Bands​

ATR (Average True Range)​

Volume Indicators​

OBV (On-Balance Volume)​

MFI (Money Flow Index)​

VWAP (Volume Weighted Average Price)​

Trend Analysis Tools​

ADX (Average Directional Index)​

Parabolic SAR (Stop and Reverse)​

Pivot Points​

Fibonacci Retracement​

Ichimoku Cloud​

Quick Comparison Tables​

By Trading Style​

By Market Condition​

By Purpose​

Common Indicator Signals​

Buy Signals​

Sell Signals​

Indicator Settings Reference​

Standard Periods​

Indicator Combinations Cheat Sheet​

Beginner Combo​

Trend Rider Combo​

Range Trader Combo​

Breakout Hunter Combo​

Divergence Player Combo​

Day Trader Combo​

Common Terms Explained​

Divergence​

Crossover​

Overbought​

Oversold​

Lagging Indicator​

Leading Indicator​

Confluence​

Squeeze​

Golden Cross​

Death Cross​

Next Steps​