Filter Indicators: Smart Entry

Indicators are mathematical formulas analyzing prices and volume to find favorable entry moments.

What's a Filter?

A filter is a condition allowing bot to buy:

❌ No filter: buy always (every day/week) ✅ With filter: buy only if RSI < 30 (oversold)

Filters help avoid worst entry moments.

8 Main Indicators on AI Traders

1. RSI (Relative Strength Index)

• Range: 0–100
• Signal: < 30 = oversold, > 70 = overbought
• Best for: volatile markets

2. MACD (Moving Average Convergence Divergence)

• Signal: line crosses signal line
• Used for: trend confirmation
• Best for: up/downtrends

3. Bollinger Bands (BB)

• Signal: price touches lower band
• Used for: mean reversion spikes
• Best for: sideways markets

4. ATR (Average True Range)

• Signal: volatility above average
• Used for: movement detection
• Best for: before big moves

5. EMA (Exponential Moving Average)

• Signal: price above/below EMA
• Used for: trend confirmation
• Best for: long-term trends

6. Volume

• Signal: volume above average
• Used for: market interest confirmation
• Best for: with other indicators

7. OBV (On-Balance Volume)

• Signal: volume rising on price up
• Used for: trend strength
• Best for: long-term analysis

8. Stochastic

• Range: 0–100
• Signal: < 20 = oversold, > 80 = overbought
• Best for: oscillating markets

How to Choose an Indicator?

For DCA Strategy

Recommendation: RSI < 30 or Stochastic < 20

• Buy only at bottom
• Skip peaks

For Grid Trading

Recommendation: Bollinger Bands or ATR

• Confirms entries
• Detects volatility

For Long-term Accumulation

Recommendation: EMA or MACD

• Follows trend
• Minimizes noise

Combining Indicators

Powerful combo:

1. EMA (ensure price above long-term trend)
2. RSI < 30 (ensure oversold)
3. Volume > average (ensure market interest)

Only if ALL three conditions met — bot buys!

Common Mistake: Too Many Filters

❌ Wrong: buy if RSI < 30 AND MACD crossed AND BB below AND Volume > AND EMA...

• Conditions match rarely
• Bot sits idle for weeks

✅ Right: max 2–3 conditions

• Buys often enough
• Avoids worst entries

First Steps

1. Choose one indicator (recommend RSI)
2. Set condition (RSI < 30)
3. Test in Paper Trading
4. Watch results 2–3 weeks
5. Add second indicator if results good

Next Step

Read detailed guide for each indicator:

• RSI — finding oversold conditions
• MACD — following trend
• Bollinger Bands — volatility trading

Ready for filters?