Crypto & Stock Technical Analysis

Multi-indicator technical analysis system that generates high-confidence trading signals by combining 29+ proven algorithms. Features divergence detection, Bollinger Band squeeze alerts, volume confirmation, and a 7-tier signal system. Ideal for cryptocurrency and stock market analysis.

Core Workflow

1. Data Acquisition

Fetch historical price data from any supported source:

CoinGecko (via MCP tools):

Use coingecko_get_historical_chart tool with:
- coin_id: Target cryptocurrency (e.g., 'bitcoin', 'ethereum')
- days: Time range ('7', '30', '90', '365', 'max')
- vs_currency: Base currency (default 'usd')

Other Supported Sources:

• Exchange APIs (Binance, Coinbase, etc.) - OHLCV format
• Yahoo Finance - Stock data
• Any price-only data - Automatic OHLC approximation

Minimum Requirements:

• At least 100 data points for reliable analysis (50 minimum)
• Price data required, volume recommended
• Recent data preferred for active trading signals

2. Convert Data to OHLCV Format

The generic data converter auto-detects and normalizes any supported format:

from scripts.data_converter import normalize_ohlcv, validate_data_quality

# Auto-detect format and convert
ohlcv_df, metadata = normalize_ohlcv(raw_data, source="auto")

# Check conversion quality
print(f"Format detected: {metadata['detected_format']}")
print(f"Rows: {metadata['original_rows']} -> {metadata['final_rows']}")
print(f"Warnings: {metadata['warnings']}")

# Validate data quality
quality_report = validate_data_quality(ohlcv_df)

Backward compatible with old CoinGecko converter:

from scripts.data_converter import prepare_analysis_data
ohlcv_df = prepare_analysis_data(coingecko_json_data)

3. Run Technical Analysis

Execute the analyzer with prepared data:

from scripts.ta_analyzer import TechnicalAnalyzer
import json

# Initialize analyzer with OHLCV data
analyzer = TechnicalAnalyzer(ohlcv_df)

# Run comprehensive analysis
results = analyzer.analyze_all()

# Display results
print(json.dumps(results, indent=2))

4. Interpret Results

Analysis returns comprehensive data including new features:

{
  "scoreTotal": 8.5,
  "tradeSignal": "STRONG_UPTREND",
  "tradeSignal7Tier": "STRONG_BUY",
  "tradeTrigger": true,
  "currentPrice": 45234.56,
  "priceChange24h": 3.45,
  "confidence": 0.75,
  "normalizedScore": 0.42,
  "volumeConfirmation": 0.85,
  "squeezeDetected": false,
  "divergences": {
    "RSI": "NONE",
    "MACD": "NONE",
    "OBV": "NONE"
  },
  "individualScores": {
    "RSI": 1.0,
    "MACD": 1.0,
    "BB": 0.75,
    "OBV": 0.8,
    "ICHIMOKU": 1.0,
    ...
  },
  "individualSignals": {
    "RSI": "BUY",
    "MACD": "BUY",
    "BB": "BUY",
    ...
  },
  "regime": {
    "regime": "TRENDING",
    "adx": 32.5,
    "dmiDirection": "UP"
  },
  "warnings": []
}

7-Tier Signal System (NEW):

• STRONG_BUY: High confidence bullish (normalized >= 0.5, confidence >= 0.7)
• BUY: Moderate confidence bullish (normalized >= 0.35, confidence >= 0.5)
• WEAK_BUY: Low confidence bullish (normalized >= 0.2)
• NEUTRAL: No clear direction
• WEAK_SELL: Low confidence bearish (normalized <= -0.2)
• SELL: Moderate confidence bearish (normalized <= -0.35, confidence >= 0.5)
• STRONG_SELL: High confidence bearish (normalized <= -0.5, confidence >= 0.7)

Legacy Signal Interpretation (backward compatible):

• scoreTotal >= 7.0: STRONG_UPTREND - High confidence bullish signal
• scoreTotal 3.0-6.9: NEUTRAL - Mixed signals, wait for clarity
• scoreTotal < 3.0: DOWNTREND - Bearish signal, avoid longs

Divergence Types:

• BULLISH_DIV: Price lower low + indicator higher low = potential reversal up
• BEARISH_DIV: Price higher high + indicator lower high = potential reversal down
• HIDDEN_BULLISH: Trend continuation signal in uptrend
• HIDDEN_BEARISH: Trend continuation signal in downtrend
• NONE: No divergence detected

Available Indicators (29)

Core Indicators (10) - Weight: 1.0

• RSI (Relative Strength Index) - Momentum oscillator with divergence detection
• MACD (Moving Average Convergence Divergence) - Trend-following momentum with divergence
• BB (Bollinger Bands) - NEW: Volatility bands with squeeze detection
• OBV (On-Balance Volume) - NEW: Volume-price divergence indicator
• ICHIMOKU (Ichimoku Cloud) - NEW: Multi-component trend system (crypto-optimized 10/30/60)
• EMA (Exponential Moving Average) - Short/long crossover
• SMA (Simple Moving Average) - Short/long crossover
• MFI (Money Flow Index) - Volume-weighted RSI
• KDJ (Stochastic with J line) - Overbought/oversold with momentum
• SAR (Parabolic SAR) - Trend reversal detection

Strong Indicators (5) - Weight: 0.75

• DEMA (Double Exponential MA) - Reduced lag moving average
• MESA (MESA Adaptive MA) - Ehlers Hilbert Transform based
• CCI (Commodity Channel Index) - Cyclical trend identification
• AROON - Trend timing indicator
• APO (Absolute Price Oscillator) - Trend strength

Supporting Indicators (14) - Weight: 0.5

• ADX (Average Directional Index) - Trend strength
• DMI (Directional Movement Index) - Trend direction
• CMO (Chande Momentum Oscillator) - Modified RSI
• KAMA (Kaufman Adaptive MA) - Volatility-adjusted MA
• MOMI (Momentum) - Rate of price change
• PPO (Percentage Price Oscillator) - Normalized MACD
• ROC (Rate of Change) - Percentage momentum
• TRIMA (Triangular MA) - Smoothed moving average
• TRIX (Triple Exponential MA) - Smoothed momentum
• T3 (Tillson T3) - Low-lag smooth MA
• WMA (Weighted MA) - Linearly weighted
• VWAP (Volume Weighted Average Price) - NEW: Institutional reference
• ATR_SIGNAL (ATR Volatility Signal) - NEW: Volatility-based signals
• CAD (CMO with Regime-Aware Mean Reversion) - Adaptive momentum

See references/indicators.md for detailed indicator explanations.

Usage Patterns

Quick Analysis

For rapid assessment of a single cryptocurrency:

1. Call coingecko_get_historical_chart for target coin (7-30 days)
2. Convert data using coingecko_converter
3. Run ta_analyzer.analyze_all()
4. Present scoreTotal and tradeSignal to user

Comparative Analysis

To compare multiple cryptocurrencies:

1. Call coingecko_compare_coins for target coins
2. For each coin:
   - Fetch historical chart data
   - Run technical analysis
   - Store results
3. Create comparison table with scores and signals
4. Identify strongest/weakest performers

Deep Dive Analysis

For comprehensive assessment with context:

1. Fetch multiple timeframes (7d, 30d, 90d)
2. Run analysis on each timeframe
3. Check for signal agreement across timeframes
4. Review individual indicator signals for divergences
5. Cross-reference with market data (market cap, volume, dominance)
6. Provide detailed report with confidence levels

Trend Monitoring

For ongoing market surveillance:

1. Fetch current data for watchlist
2. Run analysis on all coins
3. Filter for STRONG_UPTREND signals (score >= 7)
4. Rank by score descending
5. Present top opportunities with context

Best Practices

Data Quality

• Always validate data quality before analysis using validate_data_quality()
• Ensure minimum 100 data points (preferably 200+)
• Check for missing values or data gaps
• Use appropriate timeframe for user's trading strategy

Interpretation Guidelines

• Never rely on single indicator - the power is in consensus
• Consider market context - indicators behave differently in trending vs ranging markets
• Watch for divergences - when price contradicts indicators, reversal may be coming
• Volume confirms price - MFI provides crucial validation
• Multiple timeframes - confirm signals across different periods

Common Patterns

High Conviction Bullish (STRONG_BUY):

• 7-tier signal: STRONG_BUY or BUY
• Confidence >= 0.7
• RSI between 30-70 (not overbought)
• MACD bullish crossover
• Price above Ichimoku cloud
• OBV confirms with no bearish divergence
• Volume confirmation >= 0.7
• ADX > 25 (strong trend)

Breakout Setup:

• Bollinger Band squeeze detected (squeezeDetected: true)
• ADX rising from < 20
• Volume starting to increase
• Watch for band expansion

Trend Exhaustion Warning:

• Score > 7 BUT RSI > 80 or MFI > 90
• Bearish divergence on RSI, MACD, or OBV
• Price above Bollinger upper band (%B > 1.0)
• Potential reversal or pullback incoming

Divergence-Based Reversal:

• Bearish divergence: Prepare for potential top
• Bullish divergence: Watch for potential bottom
• OBV divergence is most reliable (volume precedes price)

False Breakout:

• Strong price move BUT ADX < 20
• Low volume (volumeConfirmation < 0.5)
• OBV not confirming price move
• Likely whipsaw or temporary spike

Ichimoku Confirmation:

• Price above cloud + Tenkan above Kijun = Strong bullish
• Price below cloud + Tenkan below Kijun = Strong bearish
• Price inside cloud = No-trade zone, wait for clarity

Limitations

CoinGecko Data Considerations

• CoinGecko provides price points, not true OHLC bars
• Converter approximates OHLC from adjacent prices
• Works well for trend analysis, less precise for intraday patterns

Indicator Nature

• Most indicators are lagging - calculated from past data
• Can generate whipsaws in choppy, sideways markets
• Overfitting risk - too many indicators can cause analysis paralysis
• Market regime changes require adaptation

Recommended Use Cases

✅ Great for: Trend identification, medium-term signals, portfolio screening
✅ Good for: Entry/exit timing, risk assessment, comparative analysis
⚠️ Limited for: High-frequency trading, precise intraday timing, ranging markets
❌ Avoid for: News-driven moves, low-liquidity coins, extreme volatility events

Advanced Techniques

Custom Scoring Weights

Modify indicator weights based on market conditions:

• Trending markets: Increase weight of MACD, EMA, ADX
• Ranging markets: Increase weight of RSI, CCI, Stochastic
• High volatility: Increase weight of SAR, KAMA (adaptive indicators)

Multi-Timeframe Confirmation

Analyze same coin across multiple timeframes:

- 7 days (short-term trend)
- 30 days (medium-term trend)