Technical Analysis Methodology

Transparency is the core of our platform. We do not rely on black-box signals or third-party opinions. Instead, we process raw market data through a rigorous, multi-stage algorithmic engine.This comprehensive guide details all technical indicators used in our market analysis & prediction platform. For basic definitions of individual indicators, please refer to our Technical Indicators Guide.

1. Data Sources & Integrity

The quality of any analysis is dependent on the quality of the input data. We do not rely on third-party signals or "black box" feeds. Our engine ingests raw OHLCV (Open, High, Low, Close, Volume) data directly from the world's top exchanges.

Primary Data Aggregation

We maintain real-time API connections with the top 10 exchanges by liquidity. Our "Smart Priority" system dynamically selects the most reliable data source for each coin based on volume depth and historical data consistency.

2. Trend Consensus

The Trend Consensus Indicator is a 0-100% metric designed to identify the dominant market direction. A common mistake in trading is focusing on a single timeframe (e.g., the 5-minute chart) while ignoring the bigger picture. Our algorithm solves this by calculating a weighted average across six distinct timeframes.

Timeframe Weighting System

We assign higher importance to longer timeframes because they represent stronger structural trends that are harder to break.

• Daily (1D) - 37%: The primary trend setter. This carries the most weight.
• Weekly (1W) - 30%: The macro context. Keeps us aligned with the long-term cycle.
• 4-Hour (4H) - 20%: The medium-term swing structure.
• 1-Hour (1H) - 7%: Short-term directional bias.
• 15m / 5m - 6%: Immediate momentum and noise filtering.

Calculation Methodology

The indicator uses a weighted scoring system across six components:

• Price Change (50-55% weight): Current price movement relative to previous period with timeframe-specific thresholds
• Volume Confirmation (20% weight): Volume supporting price direction (Utilizing Volume Ratio logic)
• Momentum Indicators (15-20% weight): RSI, Stochastic %K, and Williams %R combined
• MACD Signals (5% weight): MACD histogram and crossover analysis
• Moving Averages (5% weight): Price vs SMAs and EMA alignment
• Fear & Greed Adjustment (10% weight): Market sentiment factor

Interpretation Guidelines

3. Timeframe Alignment

This indicator measures the consistency of market direction across different timeframes (5m through 1w). It determines whether the short-term price action (5m to 1h charts) is in agreement with the long-term structural trend (Daily to Weekly charts). Strong alignment suggests sustainable trends, while mixed alignment indicates potential reversals.

Weight Distribution Across Timeframes

Alignment Strength Classification

1. Strong Alignment (≥80%): All timeframes agree on direction - high confidence trades
2. Moderate Alignment (60-79%): Most timeframes agree - good trading opportunities
3. Weak Alignment (40-59%): Mixed signals - requires confirmation
4. Mixed Alignment (<40%): Contradictory signals - avoid new positions

4. Risk Assessment

The Concept Risk Assessment is a "Safety-First" metric designed to quantify market danger.It combines quantitative volatility measurements, sentiment extremes, volume anomalies, technical overextensions, support/resistance proximity, and liquidity considerations into a single risk score.

Risk Factor Components

• Volatility Risk (20%): Based on ATR percentage with timeframe-specific thresholds
• Sentiment Risk (15%): Fear & Greed Index extremes and market psychology
• Volume Risk (15%): Abnormal volume patterns and liquidity concerns
• Trend Risk (20%): Overbought/oversold conditions (RSI > 80 or < 20)
• Support/Resistance Risk (15%): Distance to key technical levels
• Liquidity Risk (10%): Market cap and volume-to-market-cap ratios
• MACD Crossover Risk (5%): Signal line crossovers and histogram patterns

Risk Level Interpretation

5. Volume Sentiment

Analyzes whether trading volume patterns support or contradict price movements, evaluating both quantity and correlation. A price breakout on low volume is often a trap. We calculate the Volume Ratio by comparing the current volume to the 20-day moving average. (See full calculation: Volume Ratio Explained).

Volume Ratio Interpretation

The volume condition classification (Extreme,Very High, Normal etc.) helps identify whether volume patterns are consistent across timeframes or showing conflicting signals that might precede volatility increases.

6. Momentum Strength

The Momentum Strength Indicator measures the intensity and consistency of price movement by integrating multiple momentum oscillators (RSI, Stochastic %K, Williams %R and a short-form momentum ROC). The indicator computes timeframe-specific momentum scores, weights them by timeframe importance, and adjusts totals for trend alignment so that momentum confirming the primary trend is accentuated and momentum opposing the trend is discounted. Final results are normalized to a 0–100 scale with explicit strength bands and a derived directional bias based on average RSI.

Momentum Strength Components

How it works

• Compute individual oscillator scores per timeframe (e.g., short, medium, long).
• Apply timeframe weights to reflect the relative importance of each horizon.
• Adjust scores for trend alignment: momentum in the same direction as the primary trend receives a positive adjustment; conflicting momentum is reduced.
• Aggregate adjusted scores and normalize to a 0–100 Momentum Strength score with defined classification bands.
• Derive a momentum bias (e.g., slightly_bullish, neutral, slightly_bearish) from the average RSI and weighted oscillator agreement.

Interpretation guidelines (0–100)

1. Strong momentum (≥65): Robust, sustained directional movement with a higher probability of continuation.
2. Moderate momentum (55-64): Healthy directional movement that may exhibit periodic pauses.
3. Neutral momentum (45-54): Balanced conditions without a clear momentum edge.
4. Weak momentum (35-44): Fading directional conviction that often precedes reversals or consolidation.
5. Very weak momentum (<35):Exhausted momentum with elevated reversal probability.

7. Volatility Level

The Volatility Level Indicator assesses the dynamic range and stability of market price action by analyzing the Average True Range (ATR) relative to the asset's current price. Rather than viewing volatility simply as noise, this metric normalizes price swings across multiple timeframes to determine if the current market environment is calm or turbulent.

Volatility Level Components

ATR Percentage Classification

1. Extremely Low Volatility: ATR < 0.5% - Stagnant market, breakout pending
2. Very Low Volatility: ATR 0.5-1.4% - Below average movement
3. Low Volatility: ATR 1.5-2.9% - Normal quiet periods
4. Medium Volatility: ATR 3-4.9% - Typical cryptocurrency conditions
5. Moderate-High Volatility: ATR 5-6.9% - Above average movement
6. High Volatility: ATR 7-8.9% - Significant price swings
7. Very High Volatility: ATR 9-11.9% - Turbulent conditions
8. Extreme Volatility: ATR ≥12% - Panic/euphoria phases

8. Key Levels (Support & Resistance)

The Key Levels Indicator surfaces significant support and resistance zones derived from historical price action, moving average alignment, Fibonacci retracements, and volume profile across multiple timeframes. These levels denote price zones where buying or selling pressure has historically emerged and where future reactions are more likely.

Key Levels Components

9. Market Sentiment (Fear & Greed Index)

The Market Sentiment (Fear & Greed Index) evaluates the emotional state of investors specifically for selected coin. Instead of measuring overall crypto market psychology, this version focuses on sentiment and behavior directly tied to a single coin, providing context for short-term and long-term decision-making. (See the detailed formula breakdown here).

What It Measures

The coin-specific FGI blends several indicators like price volatility, trading momentum, social sentiment, dominance trends, and search activity, to understand how investors currently feel about this asset. These inputs form a score between 0–100, representing the emotional extremes of fear and greed.

How It Works

• Analyzes volatility and trading activity relative to the coin’s historical norms.
• Evaluates sentiment from social channels, search trends, and dominance shifts relevant to the coin.
• Computes a weighted score and classifies it into one of seven sentiment tiers.
• Integrates the sentiment score with the technical model to improve directional interpretation.

Sentiment Tiers & Meaning

1. ≥ 75 — Extreme Greed: Investors are overly optimistic about this coin; historically a caution signal.
2. 65–74 — Greed: Strong bullish enthusiasm; risk of overextension.
3. 55–64 — Slightly Bullish: Healthy optimism without extreme conditions.
4. 45–54 — Neutral: Stable sentiment with no meaningful emotional bias.
5. 40–44 — Slightly Bearish: Mild concern among holders.
6. 25–39 — Fear: This coin is experiencing worry-driven selling; potential value opportunities.
7. <25 — Extreme Fear: Panic or capitulation around this asset; historically strong accumulation zones.

10. Technical Outlook

The Technical Outlook provides coin-specific, data-driven guidance by combining all technical indicators, sentiment readings, volatility levels, and risk metrics into a structured decision tree. It is not a simple average of the indicators above. Instead, it follows a strict logic flow that prioritizes safety.

What It Is

This system delivers actionable trading context for the selected coin by synthesizing trend strength, momentum, volume sentiment, volatility, key levels, and market psychology. Instead of producing simple buy/sell labels, it uses a layered evaluation process designed to help traders understand why a recommendation is produced and how to manage positions effectively.

How It Works

The system evaluates the coin using a seven-step hierarchical framework:

1. Extreme Risk Check: Identifies severe volatility spikes, breakdown threats, or unstable market conditions that override all signals.
2. Overbought/Oversold Extremes: Examines whether the coin is stretched beyond normal boundaries (RSI extremes), increasing reversal probability.
3. Breakdown Conditions: Detects technical damage such as lost support, failed retests, or structural downtrend continuation.
4. Oversold Opportunities: Looks for high-probability rebound conditions supported by momentum or key support zones.
5. Bullish Continuation Setups: Identifies trending environments with strong supporting data across multiple indicators.
6. Range-Bound Identification: Determines whether the coin is oscillating between key levels with no directional conviction.
7. Contextual Hold: When no high-conviction signal exists, the system defaults to a contextual HOLD based on mixed, neutral, or transitional conditions.

Conclusion

This comprehensive indicator system represents the culmination of years of research and real-market testing. Each component has been carefully designed to provide specific insights while working harmoniously with other indicators.