There are hundreds (if not thousands) of technical indicators. According to Google, Investopedia (the reference point for financial education) has hundreds of documented indicators. ChatGPG reports 100-200 as a core-set and a low thousand of documented ones. This begs the question: how to know what metrics to use.

Because there is no defined set of documented metrics, Trademinator will focus on the most popular ones; however, this is not enough. Although two metrics could measure the same aspect of a candlestick, there is a criterion to follow:

• The metric's range must be 0-1, 0-100, -1 to 1, or -100 to 100. If the range differs, a normalization function should be used to fit it.
• At a minimum, the indicator must indicate when to hold or when to trade; ideally, it should show when to buy or sell.

Why? Trademinator AI algorithms are distance-based classifiers. An indicator with no limit on its output may trigger a false result.

Trend Indicators

 

Momentum Indicators

Moving Average Convergence Divergence - MACD

Here https://www.investopedia.com/terms/m/macd.asp, we can read a detailed explanation of what the MACD indicator is. According to our selection criteria:

The MACD doesn't have a fixed range; it fluctuates around the zero line.

MACD can be used to know when to buy, when to hold, and when to sell.

Percentage Price Oscillator - PPO

The PPO is a MACD variance that, instead of using absolute values, uses percentages. A detailed explanation of this indicator can be read here https://www.investopedia.com/terms/p/ppo.asp. According to our selection criteria:

The PPO range goes from 0 to 100.

PPO can be used to know when to buy, when to hold, and when to sell.

Relative Strength Index - RSI

Investopedia has a very interesting article where the RSI indicator is very well explained here https://www.investopedia.com/terms/r/rsi.asp. According to our selection criteria:

The RSI range goes from 0 to 100.

The RSI output shows when to buy (close to zero), when to hold (close to 50), and when to sell (close to 100).

 Stochastic Oscillator - STO

As always, Investopedia has a very detailed article that fully explains the STO indicator is here https://www.investopedia.com/terms/s/stochasticoscillator.asp. According to our selection criteria:

The STO range goes from 0 to 100in both %K and %D.

The %K and %D's output can be used to signal when to buy (close to zero), when to hold (close to 50) and when to sell (close to 100).

Additionally, switching between %K and %D can be used as a trigger to know when the trending has changed.

Volatility Indicators

 

Exponential Moving Average - EMA

Tipical Price - TP

TR

CHOP

Simple Moving Average - SMA 

Commodity Channel Index - CCI

ATR

ATRP

Smoothed Moving Average - SMMA

ADX

Awesome Oscillator - AO

Accelerator - AC

Bollinger Band - BB

Keltner Band - KB

Super Trend