Increases The Clarity Of Your Custom Indicators with Signal Series

2 mins read

In the fast-paced world of trading, efficiency and precision are paramount. Cluttered charts can obscure critical signals, leading to avoidable losses. Luckily, TrendSpider’s new Signal Series functionality keeps your charts clean and enhances your trading efficiency, allowing you to focus on what matters most; The signal itself. Let’s dig in.

This is the header image for the Signal Series blog post.

Why You Need The Signal Series

If you use a complex set of rules to decide when to enter or exit a trade, you might end up with many indicators cluttering your charts. For example, if you look for an ‘overbought’ reading on three different RSI lengths before taking a short position, your chart could become overcrowded with these indicators.

This is an image of a chart with 3 RSI indicators on it.

The Signal Series function allows you to define robust condition sets within your Custom JavaScript Indicators with a single visual signal, such as a candle color, dot, or line. This keeps your charts free from excessive visual data, making it clear and easy to see when it’s time to execute your trades.

In the example below, we use the Signal Series function to create a sample custom ‘RSI Ensemble’ indicator that color-codes candles based on distinct RSI conditions:

Grey: 0 RSI lengths are overbought
Yellow: 1 RSI length is overbought
Orange: 2 RSI lengths are overbought
Red: 3 RSI lengths are overbought

This is an image of an indicator that uses the signal series functionality visualized on a price chart as color-coded candles.

By using Signal Series to define these conditions, we can remove the three RSI indicators from our chart, replacing them with a simple, easy-to-read color code. This opens up valuable chart space for further analysis.

Enhanced Scanning Capabilities

The Signal Series function not only streamlines on-chart analysis but also enhances market scanning. You can define criteria in the market scanner to find assets meeting your custom conditions immediately.

For instance, we’ve used the Signal Series functionality to define two unique signal settings:

Probably Overbought: 2 RSI overbought signals
Surely Overbought: 3 RSI overbought signals

Additionally, you can specify when these signals occurred using these dropdown menu options:

Signal Emerged: The signal series was false on the previous candle but is true now
Signal Active: The signal is true now
Signal Disappeared: The signal was true on the previous candle but is false now
Signal Not Active: The signal is false now

This is an image of an indicator that uses the signal series functionality being used in the market scanner.

Focused Alerts and Strategies

The ability to script your custom signals within the market scanner also applies to multifactor alerts and the strategy tester. Instead of defining multiple conditions within your alert or strategy, Signal Series allows you to define exactly what you’re looking for with just a single condition, enhancing efficiency.

In the below 30m long strategy on TSLA, we’re entering into a trade when a ‘Probably Overbought’ signal emerges on our RSI Ensemble indicator. The strategy seeks to ride the momentum until a ‘Surely Overbought’ signal disappears, keeping a tight stop in place in the event the momentum doesn’t come.

This is an image that shows how to utilize the RSI Ensemble indicator in a strategy.

Conclusion

For traders crafting their own custom JavaScript indicators, the Signal Series is a game-changer. This powerful feature lets you create sleek, versatile indicators that reduce noise and maintain the visual simplicity of your charts, providing a comprehensive boost to your analysis capabilities. Additionally, these indicators can be fully implemented across the platform; in scans, alerts, and strategies.

If you would like to start implementing TrendSpider’s Signal Series in your custom scripts, have a read through the developer documentation to learn everything you need to know!