Skip to main content

Indicator Quick Reference

Updated over a month ago

t-a-Glance Guide to All TradeDots Indicators

Purpose: Quick lookup for indicator settings, signal types, and best use cases. Print this page for reference during trading.


Smart MACD Reversal Oscillator Pro

Quick Stats

  • Best timeframe: Daily (works on all)

  • Signal types: 5 (Trend following, Divergence, Cross, Extreme, Neutral)

  • Win rate: 65-70% (trend following), 60-65% (divergence)

  • Lag: Moderate (lagging indicator)

Signal Types and Actions

Signal

Visual

Meaning

Action

Confidence

Bullish Trend

MACD > Signal line, both > 0

Strong uptrend momentum

Hold longs, add on pullbacks

High (70%)

Bearish Trend

MACD < Signal line, both < 0

Strong downtrend momentum

Avoid longs, consider shorts

High (70%)

Bullish Cross

MACD crosses above Signal

Momentum turning bullish

Enter long with confirmation

Medium (60%)

Bearish Cross

MACD crosses below Signal

Momentum turning bearish

Exit longs, consider shorts

Medium (60%)

Bullish Divergence

Price lower low, MACD higher low

Weakening downtrend

Potential reversal, enter long

High (65%)

Bearish Divergence

Price higher high, MACD lower high

Weakening uptrend

Potential reversal, exit longs

High (65%)

Extreme Bullish

Histogram deeply negative

Oversold, bounce likely

Wait for cross, then long

Medium (55%)

Extreme Bearish

Histogram deeply positive

Overbought, pullback likely

Take profits, tighten stops

Medium (55%)

Neutral

Near zero line, flat

No clear trend

Skip, wait for clarity

Low (50%)

Settings (Default - Do Not Change Unless Experienced)

  • Fast EMA: 12

  • Slow EMA: 26

  • Signal line: 9

  • Color coding: Enabled (green/red for easy reading)

Best Used With

  • Chart Pattern & Market Structure (structure + momentum)

  • Buy Sell Signals V2 (entry timing)

  • Trend Following (multi-confirmation)

Common Mistakes to Avoid

  • Trading MACD crosses in choppy markets (many false signals)

  • Ignoring divergences (most powerful signal)

  • Using on timeframes <5-minute (too noisy)


Price Momentum Reversal Indicator

Quick Stats

  • Best timeframe: Daily (1H for day trading)

  • Signal types: 2 (Bullish reversal , Bearish reversal )

  • Win rate: 60-65% (reversal signals)

  • Lag: Low (leading indicator)

Signal Types and Actions

Signal

Visual

Meaning

Action

Bullish Reversal ↑

Green arrow + OBOS <-30

Downtrend exhausted

Enter long at support

Bearish Reversal ↓

Red arrow + OBOS >+70

Uptrend exhausted

Exit longs, consider short

Extreme Bullish

OBOS -80 to -100

Severely oversold (very rare)

High probability bounce

Extreme Bearish

OBOS +80 to +100

Severely overbought (very rare)

High probability pullback

No Signal

OBOS -30 to +30, no arrow

Normal momentum

No reversal trade

OBOS Index Scale

  • -100 to -80: Extreme oversold (very rare, reversal imminent)

  • -80 to -30: Oversold (watch for bullish signal)

  • -30 to +30: Normal range (no reversal expected)

  • +30 to +80: Overbought (watch for bearish signal)

  • +80 to +100: Extreme overbought (very rare, reversal imminent)

Interpretation: Negative values indicate oversold conditions, positive values indicate overbought conditions. Higher magnitude = stronger trend. Values beyond ±80 are very rare and indicate extreme conditions.

Settings (Default)

  • OBOS calculation: Proprietary (5 factors combined)

  • Signal threshold: -30/+70 (reversal zones)

  • Lookback period: 14 bars

Best Used With

  • Smart MACD (confirm momentum shift)

  • Chart Pattern & Market Structure (identify support/resistance for reversal)

  • Price Reversal Probability (statistical confirmation)

Common Mistakes to Avoid

  • Trading reversals against strong trends (wait for trend weakness)

  • Expecting exact tops/bottoms (use as warning, not exact timing)

  • Entering on signal alone (need support/resistance nearby)


Trend Following Buy Sell Signals

Quick Stats

  • Best timeframe: Daily (4H for faster signals)

  • Signal types: 4 (Strong, Weak, Reversal, Breakout)

  • Lag: Moderate (uses confirmed data)

Signal Types and Actions

Signal Type

Visual

Description

Entry Strategy

Stop Placement

Strong Buy

Large green arrow

Small pullback on well-established uptrend

Enter immediately or next pullback

Below demand zone

Weak Buy

Small green arrow

Larger pullback or less established trend

Wait for 2nd confirmation

Tight stop (3-5%)

Strong Sell

Large red arrow

Small bounce on well-established downtrend

Exit longs immediately

-

Weak Sell

Small red arrow

Larger bounce or less established trend

Reduce position, tighten stop

-

Reversal Buy

Green arrow at bottom

Trend change at support

Enter with small position

Just below support

Reversal Sell

Red arrow at top

Trend change at resistance

Exit, consider short

Just above resistance

Breakout Buy

Green arrow above resistance

Fresh breakout + volume

Enter on pullback to breakout level

Below breakout level

Breakout Sell

Red arrow below support

Breakdown + volume

Exit, avoid until stabilizes

-

How Signals Are Generated

All signals consider 5 factors: pivot points, moving averages, price action patterns, momentum oscillators, and volatility. Signals are NOT determined by "how many factors match" but by the level of pullback within an established trend:

  • Strong signals: Smaller pullback on well-established trend = Lower risk for potential profit, but higher probability of trend change

  • Weak signals: Larger pullback or less established trend = More conservative entry point, lower immediate risk

Trade-off: Stronger signals offer better risk/reward on continuation but carry more trend reversal risk. Position sizing and stop losses are more critical than signal strength alone.

Settings (Default)

  • All 5 factors weighted and analyzed for every signal

  • Pullback level determines signal strength classification

  • Minimum bars for signal: 3 (confirmation period)

Best Used With

  • Buy Sell Signals V2 (precise entry timing)

  • Smart MACD (momentum confirmation)

  • AI App (stock selection before applying indicator)

Common Mistakes to Avoid

  • Trading weak signals in choppy markets (skip entirely)

  • Ignoring strong sell signals because "I like the stock"

  • Entering reversal signals without support/resistance nearby


Chart Pattern & Market Structure

Quick Stats

  • Best timeframe: Daily/Weekly (works on 4H+)

  • Pattern count: 8 automatic detections

  • Win rate: 65-75% (varies by pattern)

  • Lag: Low (patterns form in real-time)

Pattern Types and Statistics

Pattern

Type

Direction

Breakout Direction

Win Rate

Avg Move

Duration

Bull Flag

Continuation

Bullish

Upward

70%

8-15%

1-3 weeks

Bear Flag

Continuation

Bearish

Downward

70%

8-15%

1-3 weeks

Ascending Triangle

Breakout

Bullish

Upward

72%

10-20%

2-6 weeks

Descending Triangle

Breakout

Bearish

Downward

72%

10-20%

2-6 weeks

Symmetrical Triangle

Breakout

Either

Breakout direction

65%

8-12%

2-4 weeks

Double Top

Reversal

Bearish

Downward

68%

10-15%

1-2 weeks

Double Bottom

Reversal

Bullish

Upward

68%

10-15%

1-2 weeks

Head & Shoulders

Reversal

Bearish

Downward

75%

15-25%

3-8 weeks

Inverse H&S

Reversal

Bullish

Upward

75%

15-25%

3-8 weeks

Cup & Handle

Breakout

Bullish

Upward

70%

20-30%

6-12 weeks

Rectangle

Range

Neutral

Breakout direction

60%

6-10%

2-6 weeks

Rising Wedge

Reversal

Bearish

Downward

65%

8-12%

2-4 weeks

Falling Wedge

Reversal

Bullish

Upward

65%

8-12%

2-4 weeks

ChoCh and BOS Signals

Signal

Full Name

Meaning

Action

Confidence

ChoCh

Change of Character

First sign of trend reversal

Warning signal, tighten stops

Medium (60%)

BOS

Break of Structure

Confirmation of trend

Enter in new trend direction

High (70%)

Bullish ChoCh

Break above lower high

Downtrend weakening

Prepare for long entries

Medium

Bearish ChoCh

Break below higher low

Uptrend weakening

Prepare to exit longs

Medium

Bullish BOS

Break above higher high

Uptrend confirmed

Enter long

High

Bearish BOS

Break below lower low

Downtrend confirmed

Exit longs, consider short

High

Settings (Default)

  • Pattern sensitivity: Medium (balance between early detection and false signals)

  • Minimum pattern bars: 15 (ensures pattern fully formed)

  • Breakout confirmation: 3% move + volume increase

Best Used With

  • Trend Following (pattern + signal confirmation)

  • Price Reversal Probability (statistical validation of pattern)

  • Buy Sell Signals V2 (entry timing within pattern)

Common Mistakes to Avoid

  • Trading patterns before breakout confirmation (wait for volume)

  • Ignoring ChoCh warnings (early reversal signal is valuable)

  • Expecting patterns to play out in choppy markets (many fail)


Price Reversal Probability + Forecast

Quick Stats

  • Best timeframe: Daily (requires sufficient data)

  • Output: Probability % + forecast price zone

  • Win rate: 70-75% (HIGH CONF), 60-65% (MED CONF)

  • Lag: Moderate (statistical analysis requires data)

Probability Levels and Actions

Probability

Label

Action

Position Size

Stop Distance

R:R Target

70-100%

HIGH CONF

Enter trade with high conviction

Full (2% risk)

Normal (5-8%)

3:1 minimum

50-69%

MED CONF

Enter trade with reduced size

Half (1% risk)

Tight (3-5%)

2:1 minimum

30-49%

LOW CONF

Skip trade or very small position

Minimal (0.5% risk)

Very tight (2-3%)

4:1 minimum

0-29%

VERY LOW

Do not trade

Skip entirely

-

-

Forecast Zones (Confidence Intervals)

Zone

Meaning

Use

Target Zone (Green)

95% confidence price will reach here

Primary profit target

Median (Yellow Line)

50% probability level

Partial exit level

Support/Resistance (Red)

High probability turning points

Stop loss placement

5-Factor Bayesian Analysis

Factor

Weight

What It Measures

1. Statistical Extreme

25%

OBOS level (RSI, Stochastic, Z-score)

2. Rate of Change

20%

Momentum speed (fast decline = exhaustion)

3. Volume Pattern

20%

Climax patterns, divergences

4. Structural Levels

20%

Distance to support/resistance

5. Historical Frequency

15%

Past reversal behavior at this price

Settings (Default)

  • Lookback period: 90 days (sufficient sample)

  • Confidence level: 95% (statistical standard)

  • Forecast timeframe: 5-10 trading days

Best Used With

  • Price Momentum Reversal (both focus on reversals)

  • Smart MACD (divergence confirmation)

  • Chart Pattern & Market Structure (identify reversal patterns)

Common Mistakes to Avoid

  • Trading LOW CONF signals (wait for 70%+)

  • Ignoring forecast zones (use as targets, not hope)

  • Expecting reversals at exact probability point (zone, not line)


Buy Sell Signals V2

Quick Stats

  • Best timeframe: All timeframes (most versatile)

  • Components: 5 integrated (Supertrend, Signals, Zones, Trendlines, Bar Coloring)

  • Win rate: 70-75% (full system with confirmations)

  • Lag: Low to moderate (balanced)

5-Component System

Component

Visual

Purpose

How to Use

Supertrend

Green/Red line

Trend direction

Trade in direction of line color

Buy/Sell Signals

Green/Red arrows

Entry/exit timing

Enter on arrows, confirm with other factors

Demand/Supply Zones

Green/Red shaded boxes

Support/resistance

Buy at demand, sell at supply

Dynamic Trendlines

Auto-drawn lines

Trend structure

Watch for breaks (trend change warning)

Bar Coloring

Candle colors

Momentum confirmation

Green = bullish, Red = bearish, Gray = neutral

Signal Confirmation Checklist (All Must Be True)

For Long Entry:

  • Supertrend green (bullish)

  • Buy arrow appears

  • Price in or near demand zone (green box)

  • Trendline not broken downward

  • Bars turning green (momentum building)

For Short Entry/Exit:

  • Supertrend red (bearish)

  • Sell arrow appears

  • Price in or near supply zone (red box)

  • Trendline broken downward

  • Bars turning red (momentum weakening)

Component Settings (Default)

Component

Key Parameter

Default Value

What It Does

Supertrend

ATR Multiplier

3.0

Wider = fewer signals, less noise

Supertrend

ATR Period

10

Volatility calculation window

Signals

Confirmation

3 factors

How many factors needed for arrow

Zones

Lookback

50 bars

How far back to find zones

Trendlines

Sensitivity

Medium

Balance between early detection and false lines

Bar Coloring

Threshold

Standard

When to turn candles green/red vs gray

Best Used With

  • AI App (stock selection, then apply Buy Sell V2)

  • Smart MACD (momentum confirmation)

  • Trend Following (signal strength validation)

Common Mistakes to Avoid

  • Trading against Supertrend direction (red trend, taking longs)

  • Ignoring demand/supply zones (enter in zones, not randomly)

  • Expecting every arrow to be perfect (still need 3+ confirmations)


Multi-Indicator Confirmation Strategies

Three-Layer Framework (Highest Win Rate: 70-75%)

Layer 1: Structure (Choose One)

  • Chart Pattern & Market Structure

  • Buy Sell Signals V2

  • Trend Following Buy Sell Signals

Layer 2: Momentum (Choose One)

  • Smart MACD

  • Price Momentum Reversal

  • Price Reversal Probability

Layer 3: Timing (From Layers 1-2)

  • Specific signal (buy arrow, MACD cross, pattern breakout)

  • AI Score 85+

  • Price at structural level (demand/supply zone)

Recommended Combinations by Style

Trading Style

Indicator Combo

Why It Works

Win Rate

Day Trading

Buy Sell V2 + Smart MACD

Fast signals, visual clarity

65-70%

Swing Trading

Trend Following + MACD + Chart Pattern

Multi-confirmation for holds

70-75%

Reversal Trading

Price Momentum + Probability + MACD Divergence

Statistical + technical reversals

65-70%

Breakout Trading

Chart Pattern + Trend Following + AI App 90+

Pattern + momentum + stock quality

70-75%

Conservative Trading

All 3 layers + AI App 95+

Maximum confirmation (fewer trades)

75-80%

Quick Decision Matrix

Scenario

Action

Indicators to Check

All 3 layers agree (bullish)

Enter long with full size (2% risk)

Structure , Momentum , Timing

2/3 layers agree

Enter with half size (1% risk)

Identify which layer disagrees, why

Layers conflict

Skip trade (wait for clarity)

No edge, 50/50 setup

No clear signals

Stay in cash, patience

Better opportunities will come


Indicator Troubleshooting Quick Guide

Problem

Indicator

Likely Cause

Quick Fix

No signals appearing

All

TradingView plan limit (3/5/10 indicators)

Remove unused indicators or upgrade plan

Signals on wrong timeframe

Chart Pattern

Designed for daily/weekly

Switch to daily chart

Too many false signals

Trend Following (Weak)

Choppy market

Only trade Strong signals, or skip until trend

Conflicting signals

Multiple

Normal (market uncertainty)

Need 3+ confirmations, skip if conflict

Indicator not visible

All

Hidden or minimized

Click eye icon in legend to show

Slow chart performance

Too many indicators

CPU overload

Remove to 3-5 indicators max


Timeframe Recommendations Summary

Timeframe

Best Indicators

Trading Style

Typical Hold Time

1-5 min

Buy Sell V2, Supertrend only

Scalping

Minutes to 1 hour

15-30 min

Buy Sell V2, Smart MACD

Day trading

1-4 hours

1-Hour

Buy Sell V2, Trend Following, MACD

Day/Swing

4 hours to 2 days

4-Hour

Trend Following, Chart Pattern, MACD

Swing trading

2-7 days

Daily

All indicators work well

Swing/Position trading

3-30 days

Weekly

Chart Pattern, Trend Following

Position trading

1-6 months


Printing Tips

For Best Results:

  • Print in landscape orientation (more readable tables)

  • Use color printer (signal colors important for quick reference)

  • Laminate or use plastic sleeve (protect from wear during trading)

  • Post near trading setup for quick glances during market hours

Digital Alternative:

  • Save PDF to tablet or second monitor

  • Use Ctrl+F (Cmd+F) to search specific indicator quickly

  • Bookmark this page in browser for fast access


Need More Detail? See full indicator chapters in Indicators section for setup guides, strategy examples, and advanced techniques.

Did this answer your question?