📈 Trading Signals Guide¶

Understand how our AI generates trading signals

🎯 Signal Generation Process¶

flowchart TD
    A[📊 Market Data] --> B{Technical Indicators}
    B --> C[RSI Analysis]
    B --> D[MACD Analysis]
    B --> E[Moving Averages]

    C --> F{Signal Scoring}
    D --> F
    E --> F

    F --> G[Combined Score]
    G --> H{Recommendation}

    H -->|Score 3/3| I[🟢 Strong BUY]
    H -->|Score 2/3| J[🟡 BUY]
    H -->|Score 1/3| K[⚪ HOLD]
    H -->|Score 0/3| L[🔴 SELL]

    style I fill:#10b981,color:#fff
    style J fill:#34d399,color:#fff
    style K fill:#9ca3af,color:#fff
    style L fill:#ef4444,color:#fff

📊 Indicator Breakdown¶

RSI (Relative Strength Index)¶

xychart-beta
    title "RSI Interpretation"
    x-axis [0, 30, 50, 70, 100]
    y-axis "Signal Strength" 0 --> 10
    bar [1, 7, 5, 7, 1]
    line [1, 7, 5, 7, 1]

RSI Range	Signal	Meaning
0-30	🟢 Oversold	Potential BUY
30-50	🟡 Weak	Caution
50-70	🟡 Strong	Bullish
70-100	🔴 Overbought	Potential SELL

MACD (Moving Average Convergence Divergence)¶

flowchart LR
    A[MACD Line] --> B{Crossover}
    B -->|Above Signal| C[🟢 Bullish]
    B -->|Below Signal| D[🔴 Bearish]

    C --> E[BUY Signal]
    D --> F[SELL Signal]

    style C fill:#10b981,color:#fff
    style D fill:#ef4444,color:#fff

💰 Position Sizing Algorithm¶

flowchart TD
    A[💰 Total Capital] --> B[Risk %]
    B --> C[Risk Amount]

    D[Entry Price] --> E[Stop Loss %]
    E --> F[Risk per Share]

    C --> G{Position Calc}
    F --> G

    G --> H[Shares to Buy]
    H --> I[Position Value]

    style A fill:#3b82f6,color:#fff
    style C fill:#10b981,color:#fff
    style H fill:#8b5cf6,color:#fff

🎓 Example Walkthrough¶

Scenario: NVDA @ $175¶

sequenceDiagram
    participant User
    participant TA as Trading Assistant
    participant API as Market Data API
    participant Calc as Calculator

    User->>TA: ta sig --symbol NVDA
    TA->>API: Fetch OHLCV data
    API-->>TA: Price data returned

    TA->>Calc: Calculate RSI
    Calc-->>TA: RSI = 52.34 (Neutral)

    TA->>Calc: Calculate MACD
    Calc-->>TA: MACD = 0.1234 (Bullish)

    TA->>Calc: Check Moving Averages
    Calc-->>TA: MA50/MA200 (Bullish)

    TA->>TA: Combine signals
    TA-->>User: BUY (Confidence: Medium)

📈 Performance Metrics¶

xychart-beta
    title "Signal Accuracy (Last 30 Days)"
    x-axis ["Week 1", "Week 2", "Week 3", "Week 4"]
    y-axis "Accuracy %" 0 --> 100
    bar [68, 72, 75, 71]
    line [68, 72, 75, 71]

🔍 Signal Confidence Levels¶

🟢 High Confidence (75%+)¶

All 3 indicators agree
Strong trend confirmation
Volume supports move

Action: Execute with full position

🟡 Medium Confidence (50-74%)¶

2 of 3 indicators agree
Moderate trend strength
Normal volume

Action: Execute with reduced position

⚪ Low Confidence (<50%)¶

Indicators conflict
Weak or no clear trend
Low volume

Action: Wait for better setup

🎯 Best Practices¶

mindmap
  root((Trading<br/>Strategy))
    Risk Management
      Position Sizing
      Stop Loss
      Take Profit
    Technical Analysis
      Multiple Indicators
      Time Frames
      Volume
    Market Conditions
      Trending
      Ranging
      Volatility
    Psychology
      Discipline
      Patience
      Emotional Control

📊 Real-World Examples¶

Example 1: Strong BUY Signal¶

NVDA - March 20, 2026
┌─────────────────────────────┐
│ RSI:    35.2  [Oversold] 🟢 │
│ MACD:   +0.45 [Bullish]  🟢 │
│ MA:     Above    [Bullish] 🟢 │
├─────────────────────────────┤
│ Score:  3/3                 │
│ Action: BUY                 │
│ Confidence: HIGH (85%)      │
└─────────────────────────────┘

Result: +12.5% in 5 days ✅

Example 2: Caution Signal¶

TSLA - March 18, 2026
┌─────────────────────────────┐
│ RSI:    48.5  [Neutral]  ⚪ │
│ MACD:   -0.12 [Bearish]  🔴 │
│ MA:     Above    [Bullish] 🟢 │
├─────────────────────────────┤
│ Score:  1/3                 │
│ Action: HOLD                │
│ Confidence: LOW (35%)       │
└─────────────────────────────┘

Result: Sideways movement ➡️

🎓 Learn More¶

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