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Documentation Index

Fetch the complete documentation index at: https://tradewatch.io/docs/llms.txt

Use this file to discover all available pages before exploring further.

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.
ParameterDescription
symbolStock ticker symbol (path parameter, e.g. AAPL)
nameIndicator key (e.g. rsi, macd). Omit to receive the full list of available keys.
periodLookback period in trading days. Defaults vary by indicator.
Example — list available indicators
curl "https://api.tradewatch.io/stocks/AAPL/indicators" \
  -H "api-key: YOUR_API_KEY"

Trend Indicators

Trend indicators identify the direction and strength of a price trend.
IndicatorKeyDefault periodWhat it shows
Simple Moving Averagesma20Average closing price over N periods; smooths short-term noise
Exponential Moving Averageema20Like SMA but weights recent prices more heavily
Weighted Moving Averagewma20Linear-weighted average; most sensitive to recent prices
MACDmacdDifference between 12- and 26-period EMA; signal line is 9-period EMA of MACD
Supertrendsupertrend10ATR-based trend-following indicator with dynamic support/resistance levels
Ichimoku CloudichimokuMulti-component system showing support, resistance, trend direction, and momentum
Average Directional Indexadx14Measures trend strength regardless of direction
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
curl "https://api.tradewatch.io/stocks/AAPL/indicators?name=macd" \
  -H "api-key: YOUR_API_KEY"

# 50-period SMA instead of the default 20
curl "https://api.tradewatch.io/stocks/AAPL/indicators?name=sma&period=50" \
  -H "api-key: YOUR_API_KEY"

Momentum Indicators

Momentum indicators measure the speed of price movement and identify overbought or oversold conditions.
IndicatorKeyDefault periodWhat it shows
Relative Strength Indexrsi14Oscillator 0–100; measures the speed and magnitude of recent price changes
Stochastic Oscillatorstochastic14Compares the closing price to the price range over N periods
Williams %Rwilliams-r14Inverse of Stochastic; identifies potential turning points
Commodity Channel Indexcci20Measures how far price deviates from its statistical average
Momentummomentum10Raw price change over N periods
Rate of Changeroc12Percentage price change over N periods
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
curl "https://api.tradewatch.io/stocks/AAPL/indicators?name=rsi" \
  -H "api-key: YOUR_API_KEY"

# Shorter RSI period for more sensitivity
curl "https://api.tradewatch.io/stocks/AAPL/indicators?name=rsi&period=9" \
  -H "api-key: YOUR_API_KEY"

Volatility Indicators

Volatility indicators measure the magnitude of price fluctuations, independent of direction.
IndicatorKeyDefault periodWhat it shows
Bollinger Bandsbollinger20Price envelope: middle SMA ± 2 standard deviations
Average True Rangeatr14Average daily price range; raw measure of volatility
Keltner Channelkeltner20ATR-based envelope around an EMA
Donchian Channeldonchian20Highest high and lowest low over N periods
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
curl "https://api.tradewatch.io/stocks/AAPL/indicators?name=bollinger" \
  -H "api-key: YOUR_API_KEY"

curl "https://api.tradewatch.io/stocks/AAPL/indicators?name=atr" \
  -H "api-key: YOUR_API_KEY"

Volume Indicators

Volume indicators combine price and trading volume to confirm trends or identify divergences.
IndicatorKeyWhat it shows
On-Balance VolumeobvCumulative volume flow — rising OBV indicates buying pressure
Accumulation/DistributionadRelates the close’s position within the day’s range to volume
VWAPvwapVolume-weighted average price for the current trading session
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
curl "https://api.tradewatch.io/stocks/AAPL/indicators?name=vwap" \
  -H "api-key: YOUR_API_KEY"

curl "https://api.tradewatch.io/stocks/AAPL/indicators?name=obv" \
  -H "api-key: YOUR_API_KEY"

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:
IndicatorShort-termStandardLong-term
RSI91421
SMA / EMA102050 / 200
Bollinger Bands20
ATR14
Stochastic914
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.