Skip to main content
Technical indicators are mathematical transformations of historical price and volume data used to identify trends, momentum shifts, volatility regimes, and volume patterns. The indicators endpoint computes values on demand from TradeWatch’s historical price data — you do not need to maintain your own time series.

​
Endpoint

Endpoint: GET /stocks/{symbol}/indicators Omit the name parameter to receive a list of all supported indicator keys. Supply name to compute a specific indicator. Use period to override the default lookback window in trading days. Example — list available indicators

​
Trend Indicators

Trend indicators identify the direction and strength of a price trend. Interpretation
  • MACD crossover: When the MACD line crosses above the signal line, it may indicate building bullish momentum; crossing below may indicate bearish momentum. Crossovers near the zero line carry more weight.
  • ADX: Values above 25 indicate a strong trend; below 20 suggests a ranging or sideways market. ADX measures trend strength, not direction — use alongside the +DI and -DI components to determine which direction the trend is moving.
Example

​
Momentum Indicators

Momentum indicators measure the speed of price movement and identify overbought or oversold conditions. Interpretation
  • RSI: Above 70 is conventionally considered overbought (potential reversal downward); below 30 is oversold (potential reversal upward). These thresholds are guidelines — in strong trends, RSI can remain overbought or oversold for extended periods.
  • Stochastic Oscillator: Above 80 = overbought; below 20 = oversold. The %K and %D crossover is often used as a timing signal.
  • Williams %R: Scaled −100 to 0. Readings above −20 indicate overbought; below −80 indicate oversold.
Example

​
Volatility Indicators

Volatility indicators measure the magnitude of price fluctuations, independent of direction. Interpretation
  • Bollinger Band squeeze: When the bands narrow significantly (low volatility), it often precedes a significant price move. The direction of the breakout is not implied by the squeeze itself.
  • ATR: Use ATR to size stop-loss distances proportionally to current volatility rather than using a fixed point value. A stock with an ATR of 5requireswiderstopsthanonewithanATRof5 requires wider stops than one with an ATR of 0.50.
  • Keltner vs Bollinger: When Bollinger Bands contract inside the Keltner Channel, it signals exceptionally low volatility and a high-probability squeeze setup.
Example

​
Volume Indicators

Volume indicators combine price and trading volume to confirm trends or identify divergences. Interpretation
  • VWAP: Institutional traders use VWAP as a benchmark execution price. A stock trading above VWAP during the session indicates bullish intraday sentiment. VWAP resets at the start of each trading session — it is a same-session metric.
  • OBV divergence: If price makes a new high but OBV fails to confirm, the uptrend may be weakening (and vice versa for downtrends). Divergence between price and OBV is a common reversal signal.
  • A/D vs OBV: A/D accounts for where the close falls within the day’s range, not just whether price was up or down. It can diverge from OBV when closes are consistently near session lows even on up days.
Example

​
Tuning the Period Parameter

The period parameter controls the lookback window in trading days. A shorter period reacts faster to recent price changes but generates more noise. A longer period smooths output but lags further behind current price action. Common starting points by indicator: No indicator works well in isolation. Combining a trend indicator (MACD, ADX) with a momentum indicator (RSI) and a volume confirmation (OBV) gives a more robust view than any single signal.