> For the complete documentation index, see [llms.txt](https://botlyz.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://botlyz.gitbook.io/docs/english/indicateurs.md). # Indicators Botlyz provides you with a rich catalog of technical indicators to build your custom strategies through the no-code Builder. Each indicator belongs to a family and can be combined to create entry and exit conditions tailored to your trading style. ## Overview The indicators are grouped into six main families: 1. **Trend and moving averages**: identify the direction and momentum of the market 2. **Momentum and oscillators**: measure the speed and strength of price movement 3. **Volatility**: assess the amplitude of price fluctuations 4. **Volume**: analyze the strength of movements through trading volume 5. **Bollinger Bands and envelopes**: define dynamic support/resistance zones 6. **Other indicators**: complementary tools to refine your strategy The Builder automatically classifies each indicator and suggests common default values. You remain free to configure each indicator according to your preference. > **Tip**: the complete list of all available indicators (69 in total) can be browsed and searched directly from the Builder panel when creating or editing a strategy. This article presents the main families and representative examples. ## 1. Trend and moving averages These indicators smooth out price noise and reveal the underlying trend. ### Simple Moving Average (SMA) The simple moving average calculates the average price over N past periods. It provides a clear view of the overall direction. **Use in a condition**: * Long entry if the price closes above the SMA 20 * Short entry if the price closes below the SMA 20 * Combination: the price crosses above an SMA 50 (bullish signal) ### Exponential Moving Average (EMA) The exponential moving average gives more weight to recent prices, which makes it more responsive than the SMA. It follows trends with a slight lag. **Use in a condition**: * Entry if the short EMA crosses the long EMA (for example EMA 12 crosses above EMA 26) * Filter out false signals by requiring the price to be above its EMA 50 ### Moving Average Convergence Divergence (MACD) The MACD combines two exponential moving averages to identify momentum changes. It displays three elements: the MACD line, the signal line and the histogram. **Use in a condition**: * Entry if the MACD line crosses above its signal line * Filtering: confirm that the MACD histogram is positive * A stronger signal if the crossover occurs below the zero line ### Hull Moving Average (HMA) The Hull moving average combines short and long periods to reduce lag and provide better responsiveness. **Use in a condition**: * Long entry if the price crosses above the HMA * Stop-loss set below the low observed since the crossover > **Note**: the interpretations below (overbought, oversold, crossovers, divergences, bullish or bearish signals) are general and commonly accepted definitions of technical indicators. They do not constitute either a trading signal provided by Botlyz, or a recommendation to buy or sell. You alone remain in control of deciding the logic that you configure and sign. ## 2. Momentum and oscillators Oscillators measure the speed and strength of price movements. They generally oscillate between minimum and maximum values, revealing overbought or oversold conditions. ### Relative Strength Index (RSI) The RSI measures the relative strength of gains versus losses over a given period (14 by default). Values range between 0 and 100: above 70 = overbought, below 30 = oversold. **Use in a condition**: * Signal filtering: confirm a long entry if RSI < 70 (avoids chasing an already extended move) * Contrarian entry in oversold conditions: RSI < 30 and price above a key support * Divergence detection: the price makes a higher high but the RSI makes a lower high (signal of exhaustion) ### Stochastic Oscillator The stochastic compares the closing price to the range of the period to measure its relative position. It comprises two lines: %K and %D (moving averages). Same thresholds as the RSI (70/30). **Use in a condition**: * Long entry if %K crosses above %D (in the oversold zone, below 30) * Short entry if %K crosses below %D (in the overbought zone, above 70) * Use the crossover of the 50 line as an additional neutral reference ### Rate of Change (ROC) The ROC measures the percentage change of the price over N periods. Positive = rise, negative = fall. The higher the absolute value, the stronger the movement. **Use in a condition**: * Filter entries with ROC > 0 to trade in the direction of the momentum * Detect movement exhaustion if the ROC begins to decrease (divergence) ### Momentum Indicator The simple momentum calculates the difference between the current price and that of N past periods. It crosses zero to indicate a change of direction. **Use in a condition**: * Long entry if the momentum crosses above zero * Confirmation of an established direction: positive momentum in an uptrend ### Williams' %R (%R) Similar to the stochastic but on an inverted scale (-100 to 0). It measures the position of the price within its recent range. **Use in a condition**: * Entry if %R rises above -80 (exit from oversold) * Exit if %R falls below -20 (entry into overbought) ## 3. Volatility Volatility indicators measure the amplitude of price movements. High volatility corresponds to a nervous market, low volatility to a calm market. ### Average True Range (ATR) The ATR measures average volatility by accounting for gaps and session limits. It is not directional: it indicates only an amplitude. **Use in a condition**: * Set the size of stop-loss and take-profit: SL = price ± (ATR × coefficient) * Enter if the ATR is above a historical average (sufficient volatility to trade) * ATR envelopes: place levels at price ± (ATR × multipliers) to stagger your orders ### Bollinger Bands (BB) Bollinger Bands combine a moving average (SMA 20 by default) and two standard deviations on either side. They create an "envelope" around the price. **Use in a condition**: * Long entry if the price touches the lower band (oversold zone) * Short entry if the price touches the upper band (overbought zone) * Band expansion = increase in volatility (useful for trend following) * Band contraction = decrease in volatility (prepare for a breakout) ### Donchian Channels Donchian channels plot the high and the low of the last N periods. They reveal range breakouts. **Use in a condition**: * Long entry if the price crosses above the upper channel (bullish breakout) * Short entry if the price crosses below the lower channel (bearish breakout) * Dynamic support and resistance ### Keltner Channels Similar to Bollinger Bands but based on the ATR instead of standard deviations. Often better suited to highly volatile markets. **Use in a condition**: * Long entry if the price exits the channel from the top * Short entry if the price exits the channel from the bottom * Volatility automatically adjusted through the ATR ## 4. Volume Volume indicators analyze the strength and conviction behind price movements. ### On-Balance Volume (OBV) The OBV accumulates volume according to the direction of the price: bullish volume added, bearish volume subtracted. A rising trend in the OBV indicates accumulation. **Use in a condition**: * Confirmation: look for a synchronized rise in price and OBV * Divergence: the price makes a higher high but the OBV declines (signal of exhaustion) ### Money Flow Index (MFI) The MFI combines price and volume to measure the flow of money coming in and going out. It oscillates between 0 and 100 like the RSI, but by accounting for volume. **Use in a condition**: * MFI > 80 = overbought (strong buyer interest but risky) * MFI < 20 = oversold (strong seller interest but risky) * Divergence: high price but low MFI (large players are selling) ### Volume Weighted Average Price (VWAP) The VWAP calculates the volume-weighted average price. It is a reference widely followed by institutional traders. **Use in a condition**: * Support and resistance: the price tends to respect the VWAP * Long entry if the price tests the VWAP from above * Short entry if the price tests the VWAP from below ### Accumulation/Distribution Line (A/D) The A/D line measures accumulation versus distribution by accounting for the closing level within the session's range. **Use in a condition**: * Bullish divergence: the price makes a lower low but the A/D line rises (underlying buying) * Bearish divergence: the price makes a higher high but the A/D line falls (underlying selling) ## 5. Custom bands and envelopes Botlyz supports multi-level envelopes (several nested trading bands) based on the ATR or standard deviations. ### ATR envelopes Each envelope is defined by an ATR multiplier and a capital allocation. **Example of use**: ``` Envelope 1 (near) : ATR × 1.5 → allocation 20% Envelope 2 (middle) : ATR × 3.0 → allocation 30% Envelope 3 (far) : ATR × 5.0 → allocation 50% ``` This way, the software staggers the entries at different levels according to your configuration. Staggering changes the entry profile but does not reduce or eliminate the risk of loss. ### Custom standard deviation bands Define your own standard deviation (for example 2 σ, 3 σ) around a chosen moving average. **Use**: * Progressive entries based on the standard deviation * Profit-taking also progressive according to the bands ## 6. Other indicators ### Average Directional Index (ADX) The ADX measures the strength of a trend (0 to 100). Above 25 = established trend, below = directionless market. **Use in a condition**: * Trade only if ADX > 25 (avoids trendless markets) * Falling ADX = weakening trend (consider taking profits) ### Ichimoku Cloud The Ichimoku indicator offers a complete view with five lines: conversion, base, leading spans A and B, and lagging span. **Use in a condition**: * Thick cloud = strong support or resistance * Price above the cloud = confirmed uptrend * Crossover of the conversion and the base = reversal signal ### Parabolic SAR (Stop and Reverse) The SAR places dynamic stop-loss points that progressively move closer to the price during a trend. **Use in a condition**: * SAR below the price = uptrend * SAR above the price = downtrend * Crossover = potential reversal ### Commodity Channel Index (CCI) The CCI measures the deviation of the price from its arithmetic mean, normalized by the average deviation. **Use in a condition**: * CCI > 100 = price well above the mean (potential overbought) * CCI < -100 = price well below the mean (potential oversold) * Zero crossover = possible change of direction ### Awesome Oscillator (AO) The AO measures short-term momentum minus medium-term momentum (5 versus 34 periods by default). **Use in a condition**: * Positive histogram = bullish momentum * Negative histogram = bearish momentum * Zero crossover = change of direction * Accelerating histogram = increasing strength of the movement ## How to use indicators in the Builder ### 1. Creating a simple condition When you configure a long entry, the Builder offers you: ``` IF [Indicator] [Operator] [Value/Threshold] THEN LONG entry ``` Example: `IF RSI > 40 AND price > SMA 50 THEN Long entry` ### 2. Combining indicators The main value lies in combining several indicators: * **Filtering**: one indicator confirms the direction, another filters the quality of the signal * **Divergence**: look for gaps between price and momentum to identify reversals * **Moving average + oscillator**: the average for the trend, the oscillator for the entry timing * **Volume + price**: volume confirms the conviction behind the movement ### 3. Configuration Each indicator offers parameters: | Parameter | Default | Range | Tip | | --------------- | ------------------------- | ------------- | ----------------------------------------- | | SMA/EMA period | 20, 50, 200 | 5-500 | Shorter = more responsive but more noise | | RSI period | 14 | 5-28 | 14 standard, 7-9 for short swing | | MACD period | 12, 26 | Customizable | Common default values for H4 and intraday | | Bollinger Bands | 20, 2 standard deviations | 10-50 / 1-3 σ | Wider = fewer touches | | ATR period | 14 | 5-20 | Shorter = captures more volatility | ### 4. Backtest your strategy Before trading live: 1. Open the **Backtest** from the Builder (see [Backtest](/docs/english/backtest.md)) 2. Select the pair and the timeframe 3. Define your history period (3 months minimum recommended) 4. View the win rate, the risk/reward ratio and the equity curve 5. Adjust the parameters and retest The backtest illustrates the past behavior of the logic on historical data. It does not constitute a promise of results: past performance is not indicative of future performance. ## Important points * **No indicator is magical**: every indicator is already "priced in" by the market. Use them to structure your logic, not as a crystal ball. * **Diversify the conditions**: a single source of signal is risky. Combine trend, momentum and volume. * **Test before going live**: the Builder includes a backtest. Validate your logic before committing real capital. * **Adjust according to the market and the timeframe**: parameters that are effective on BTC/USD 4H may not be on a 15 min altcoin. * **Risk management first**: no indicator replaces a good stop-loss and a prudent allocation. See [Risk parameters](/docs/english/parametres-de-risque.md). > **Legal reminder**: Botlyz is an automation software editor, not a financial adviser. The service is non-custodial (your funds and your keys remain with you, the API keys are in trade-only mode without the possibility of withdrawal) and you sign your configuration yourself (EIP-712). Trading carries a risk of capital loss and past performance is not indicative of future performance. You alone are responsible for your trading decisions and your capital. Never risk more than you can afford to lose. See also the [Risk warning](/docs/english/avertissement-risques.md). --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://botlyz.gitbook.io/docs/english/indicateurs.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.