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Interactions

Here are the definitions of the interactions commonly used in the Smart Studies engine and how they can be applied to build strategies:

  • Converges with: This interaction occurs when two indicators move closer to each other. It can be used to identify potential trend reversals or consolidation periods. For example, if the RSI converges with the Slow Stochastic from above, it might suggest a potential shift from overbought to oversold conditions, indicating a possible price reversal.

  • Crosses below: This interaction occurs when one indicator moves downward and crosses below another. It can be used as a bearish signal or to identify potential selling opportunities. For instance, if the MACD line crosses below the signal line, it might indicate a bearish trend and signal a potential sell trade.

  • Crosses above: This interaction occurs when one indicator moves upward and crosses above another indicator. It can be used as a bullish signal or to identify potential buying opportunities. For example, if the price crosses above the upper Bollinger Band, it might suggest a bullish breakout and signal a potential buy trade.

  • Diverges from: This interaction happens when two indicators move in opposite directions, creating a divergence. It can be used to identify potential trend reversals or shifts in momentum. For instance, if the price is making higher highs while the RSI is making lower highs, it might indicate a bearish divergence, suggesting a potential price reversal.

  • Equals: This interaction occurs when two indicators have the same value. It can be used to identify specific levels or thresholds. For example, if the Williams %R equals -80, it might indicate an oversold condition, suggesting a potential buying opportunity.

  • Is Above: This interaction takes place when one indicator's value is higher than another indicator's value. It can be used to identify bullish conditions or to compare the strength of two indicators. For example, if the current price is above the 50-day moving average, it might indicate a bullish trend.

  • Is At or Above: This interaction occurs when one indicator's value is equal to or higher than another indicator's value. It can be used to identify specific levels or thresholds. For example, if the RSI is at or above 70, it might indicate an overbought condition, suggesting a potential selling opportunity.

  • Is At or Below: This interaction takes place when one indicator's value is equal to or lower than another indicator's value. It can be used to identify specific levels or thresholds. For example, if the price is at or below the lower Bollinger Band, it might indicate an oversold condition, suggesting a potential buying opportunity.

  • Is Below: This interaction occurs when one indicator's value is lower than another indicator's value. It can be used to identify bearish conditions or to compare the strength of two indicators. For example, if the current price is below the 200-day moving average, it might indicate a bearish trend.

    • Logic table for interactions

    NameMath Symbol or explanationAvailable with Buffer on Line 2Notes
    is above>No
    is at or above>=No
    is below<No
    is at or below<=No
    equals=NoThis will work with floating point numbers but not every time.
    crosses from below to aboveIn previous step was <=, No
    crosses from above to belowIn the previous step was >=, now is <No
    converges withComparing previous to current step, No
    diverges fromComparing previous to current step,

    These interactions allow you to establish rules and conditions for generating trading signals or triggering specific actions within your strategies. By combining different indicators and their interactions, you’re able to create complex strategies tailored to your trading preferences and market analysis.

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    Interactions

    Here are the definitions of the interactions commonly used in the Smart Studies engine and how they can be applied to build strategies:

  • Converges with: This interaction occurs when two indicators move closer to each other. It can be used to identify potential trend reversals or consolidation periods. For example, if the RSI converges with the Slow Stochastic from above, it might suggest a potential shift from overbought to oversold conditions, indicating a possible price reversal.

  • Crosses below: This interaction occurs when one indicator moves downward and crosses below another. It can be used as a bearish signal or to identify potential selling opportunities. For instance, if the MACD line crosses below the signal line, it might indicate a bearish trend and signal a potential sell trade.

  • Crosses above: This interaction occurs when one indicator moves upward and crosses above another indicator. It can be used as a bullish signal or to identify potential buying opportunities. For example, if the price crosses above the upper Bollinger Band, it might suggest a bullish breakout and signal a potential buy trade.

  • Diverges from: This interaction happens when two indicators move in opposite directions, creating a divergence. It can be used to identify potential trend reversals or shifts in momentum. For instance, if the price is making higher highs while the RSI is making lower highs, it might indicate a bearish divergence, suggesting a potential price reversal.

  • Equals: This interaction occurs when two indicators have the same value. It can be used to identify specific levels or thresholds. For example, if the Williams %R equals -80, it might indicate an oversold condition, suggesting a potential buying opportunity.

  • Is Above: This interaction takes place when one indicator's value is higher than another indicator's value. It can be used to identify bullish conditions or to compare the strength of two indicators. For example, if the current price is above the 50-day moving average, it might indicate a bullish trend.

  • Is At or Above: This interaction occurs when one indicator's value is equal to or higher than another indicator's value. It can be used to identify specific levels or thresholds. For example, if the RSI is at or above 70, it might indicate an overbought condition, suggesting a potential selling opportunity.

  • Is At or Below: This interaction takes place when one indicator's value is equal to or lower than another indicator's value. It can be used to identify specific levels or thresholds. For example, if the price is at or below the lower Bollinger Band, it might indicate an oversold condition, suggesting a potential buying opportunity.

  • Is Below: This interaction occurs when one indicator's value is lower than another indicator's value. It can be used to identify bearish conditions or to compare the strength of two indicators. For example, if the current price is below the 200-day moving average, it might indicate a bearish trend.

    • Logic table for interactions

    NameMath Symbol or explanationAvailable with Buffer on Line 2Notes
    is above>No
    is at or above>=No
    is below<No
    is at or below<=No
    equals=NoThis will work with floating point numbers but not every time.
    crosses from below to aboveIn previous step was <=, No
    crosses from above to belowIn the previous step was >=, now is <No
    converges withComparing previous to current step, No
    diverges fromComparing previous to current step,

    These interactions allow you to establish rules and conditions for generating trading signals or triggering specific actions within your strategies. By combining different indicators and their interactions, you’re able to create complex strategies tailored to your trading preferences and market analysis.