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Technical index rating

Last updated on Aug 16, 2024

In financial market trading, the key to profitability depends on when to enter and exit, when to trade and when to wait? If you are confused about these questions, technical analysis may help you

Technical analysis

Technical analysis refers to judging the direction of the market based on charts and indicators. The theoretical techniques of technical analysis are based on three major assumptions:

  1. Market behavior includes everything

  2. Price evolves in a trending manner

  3. History will repeat

Only when you agree with the above three assumptions, it makes sense to trade with reference to technical indicator ratings, otherwise the following can be ignored

The essence of technical indicators is to mathematically transform the price of a financial produc to predict its future price changes. It provides trading opportunities for identifying various features and patterns that are difficult to detect with naked eye in dynamic prices. According to the functional characteristics, technical indicators include two types:

  1. Volatility indicators: Volatility indicators help to identify market reversal points in advance or at the same time

  2. Trend Indicators: Trend indicators help identify price direction, follow the trend or spot trend reversal moments with a slight delay

Built-in technical indicator rating

In order to lower the threshold of learning and use and help traders to quickly get started with technical analysis, the HXR Trade platform has built-in a series of common technical indicators, including three categories:

  • Volatility indicators:Relative Strength Index (RSI) and Bollinger Bands (BB)

  • Trend Indicators: Simple Moving Average (SMA), Exponential Moving Average (EMA) and Moving Average Convergence Divergence (MACD)

  • Comprehensive indicators：TradingView

At the same time, it provides 1 minute, 5 minutes, 15 minutes, 30 minutes, 1 hour, 2 hours, 4 hours, 1 day, 1 week, 1 month for each group of indicators, a total of 10 cycle levels of technical ratings.You can choose an indicator rating according to your own trading style. you can use the cycle rating of an indicator alone or use a free combination of different cycles of different indicators as a reference for trade decisions.

Next, we will introduce the built-in technical indicator rating of the HXR Trade platform.

Relative Strength Index (RSI)

RSI is a widely recognized volatility indicators，compare candlestick closing prices with previous price to determine if prices are overbought and oversold.The HXR Trade platform is built with trade ratings with sample lengths of 7 and 14 lines.

  • Buy: The indicator value is less than 30 and the price is rising

  • Sell: The indicator value is above 70 and the price is falling

  • Neutral: neither buy nor sell

You can refer to more information about RSI here Relative Strength Index

Bollinger Bands (BB)

(BB) is a widely popular technical analysis indicator. Bollinger Bands consist of three lines, the middle line is usually a simple moving average (SMA) set with a cycle of 20 candles, and the upper and lower lines are set at two standard deviations from the middle line. The HXR Trade platform has built-in trade ratings with a sampling length of 20 and a standard deviation of 2:

  • Buy: Close below the lower Bollinger Band

  • Sell: Close above the upper Bollinger Band

  • Neutral: neither buy nor sell

You can refer to more information about BB here Bollinger Bands

Moving Average (SMA) and Exponential Moving Average (EMA)

The moving average uses statistical analysis to average the prices in a certain period of time, and connects the average values of different times to form an average line, which is a technical indicator for the trend of price changes.Exponential Moving Averages (EMAs) give more weight to recent prices and react faster to prices thanSMAs.

The HXR Trade platform has built-in trade ratings with a sampling length of 5-200 for Simple Moving Average (SMA) and Exponential Moving Average (EMA):

  • Buy: close below the moving average

  • Sell: Close above the moving average

  • Neutral: neither buy nor sell

You can refer to more information about moving averages here Simple Moving Average (SMA)Exponential Moving Average (EMA)

Moving Average Convergence Divergence (MACD)

Moving Average Convergence Divergence (MACD) is a very popular technical analysis indicator that uses two moving averages of different periods to determine trend direction and duration.The HXR Trade platform has built-in trade ratings with a fast moving average period of 12, a slow moving average period of 16, and a signal line smoothing period of 9:

  • Buy: When the MACD line crosses the signal smoothing line from below the 0 axis

  • Sell: When the MACD line crosses the signal smoothing line from above the 0 axis

  • Neutral: neither buy nor sell

You can refer to more information about MACD here Moving Average Convergence Divergence

Tradingview Rating

The TV indicator is a composite indicator that uses multiple underlying indicators to calculate the rating criteria. Unlike the other base indicators, which only have 3 ratings, the TV indicator has 5 ratings:

  • strong buy

  • buy

  • neutral

  • sell

  • trong sell

You can refer to more information about Tradingview Rating here Tradingview Rating

Disclaimer

The technical indicator ratings provided by the HXR Trade platform are derived from mathematical transformations and are completely open and transparent. The trading ratings are for reference only and should not be regarded as investment advice given by the HXR trade platform. Any action you take in accordance with the advice of Tech Ratings is at your own risk