Educational: All in one technical indicator: Technical Rating.
If you have ever wanted an indicator that accounts for a large number of other indicators to give you a rating of the market conditions, Then the technical rating indicator is what you've been looking for.
📊 What is the technical rating indicator and how it works
The technical rating indicator (TRI) is a tool that aids traders and investors in assessing the technical analysis-based performance of a stock, ETF, or any other financial instrument. Technical analysis is the study of price changes, trends, patterns, and indications that can provide insight into the state of the market and an asset's supply and demand dynamics.
It is a simplified version of TradingView "More Technicals" page for an asset.
The TRI is derived by integrating a number of technical indicators, such as momentum, trend and volatility, that track various elements of price activity. Each indicator is given a score by the TRI based on how bullish or bearish it is, and the scores are then averaged to produce a final rating. The rating can be between 0 and 100, with 0 denoting extreme pessimism and 100 denoting extreme optimism.
Here is a list of the indicators used in the calculations and how their ratings are determined:
🔹All Moving Averages
Buy — MA value < price
Sell — MA value > price
Neutral — MA value = price
🔹Ichimoku Cloud
Buy — base line < price and conversion line crosses price from below and lead line 1 > price and lead line 1 > lead line 2
Sell — base line > price and conversion line crosses price from above and lead line 1 < price and lead line 1 < lead line 2
Neutral — neither Buy nor Sell
🔹Relative Strength Index
Buy — indicator < 30 and rising
Sell — indicator > 70 and falling
Neutral — neither Buy nor Sell
🔹Stochastic
Buy — main line < 20 and main line crosses over the signal line
Sell — main line > 80 and main line crosses under the signal line
Neutral — neither Buy nor Sell
🔹Commodity Channel Index
Buy — indicator < -100 and rising
Sell — indicator > 100 and falling
Neutral — neither Buy nor Sell
🔹Average Directional Index
Buy — indicator > 20 and +DI line crosses over -DI line
Sell — indicator > 20 and +DI line crosses under -DI line
Neutral — neither Buy nor Sell
🔹Awesome Oscillator
Buy — saucer and values are greater than 0, or cross over the zero line
Sell — saucer and values are lower than 0, or cross under the zero line
Neutral — neither Buy nor Sell
🔹Momentum
Buy — indicator values are rising
Sell — indicator values are falling
Neutral — neither Buy nor Sell
🔹MACD
Buy — main line values > signal line values
Sell — main line values < signal line values
Neutral — neither Buy nor Sell
🔹Stochastic RSI
Buy — downtrend and K and D lines < 20 and K line crosses over D line
Sell — uptrend and K and D lines > 80 and K line crosses under D line
Neutral — neither Buy nor Sell
🔹Williams Percent Range
Buy — indicator < lower band and rising
Sell — indicator > upper band and falling
Neutral — neither Buy nor Sell
🔹Bulls and Bears Power
Buy — uptrend and BearPower < zero and BearPower is rising
Sell — downtrend and BullPower > zero and BullPower is falling
Neutral — neither Buy nor Sell
🔹Ultimate Oscillator
Buy — UO > 70
Sell — UO < 30
Neutral — neither Buy nor Sell
The TRI can assist traders and investors in determining possible entry and exit opportunities as well as the intensity and direction of the current trend. Using the TRI, you may evaluate various assets and determine which ones are outperforming or underperforming the market.
📊How to access the indicator:
The technical rating indicator comes free with your TradingView account and you can access it by utilizing the indicator search tab.
📊How to read the indicator
The technical rating indicator can help you detect trends very early. It is displayed as a column chart by default. When the columns are closing above the 0 line, it indicates that there is more bullish confluence from multiple indicators, and when below 0 there is more bearish confluence.
You may have also noticed that the colors are gradient Allowing the user to determine the intensity of a trend. :
The price being bearish or bullish is an indication that most of the indicators used in the calculation are indicating sell or buy.
Important note: Whenever the indicator is indicating a strong sell or buy usually the oscillators will be saying the opposite. This is due to the nature of how the indicators operate. See illustration below for explanation.
If you would like to focus on finding reversals verses trend or vice versa you can adjust the settings of the indicator to either focus on moving averages or oscillators. Moving averages being trend based and oscillators being reversals.
Here are some additional settings of the indicator:
1: This is where you can adjust what timeframe you would like the indicator to be based on. For example you can be on the 1Hr timeframe and get information on the daily timeframe.
2: Use these settings to determine what timeframe information you would like to see on the table
3: This is the table that displays information about other timeframes.
📊Some of the advantages of using the TRI are:
🔹 It simplifies the technical analysis by providing a single number that summarizes the overall technical condition of an asset.
🔹 It eliminates the subjective interpretation of individual indicators and reduces the risk of conflicting signals.
🔹 It adapts to different time frames and market conditions by using dynamic thresholds and weights for each indicator.
🔹 It can be customized by choosing different indicators and parameters according to personal preferences and trading styles.
📊Some of the limitations of using the TRI are:
🔸 It does not take into account fundamental factors, such as earnings, news, or economic data, that can affect the price of an asset.
🔸 It does not provide specific trading signals or recommendations, but rather a general overview of the technical situation.
🔸 It may lag behind the actual price movements, especially in fast-moving or choppy markets.
🔸 It may generate false or misleading signals, especially in sideways or range-bound markets.
The TRI is not a magic formula that guarantees success in trading or investing. It is a useful tool that can complement other methods of analysis and decision making. As with any technical indicator, it is important to use it with caution and common sense, and to test it on historical data before applying it to real trading situations.
📊 What is the technical rating indicator and how it works
The technical rating indicator (TRI) is a tool that aids traders and investors in assessing the technical analysis-based performance of a stock, ETF, or any other financial instrument. Technical analysis is the study of price changes, trends, patterns, and indications that can provide insight into the state of the market and an asset's supply and demand dynamics.
It is a simplified version of TradingView "More Technicals" page for an asset.
The TRI is derived by integrating a number of technical indicators, such as momentum, trend and volatility, that track various elements of price activity. Each indicator is given a score by the TRI based on how bullish or bearish it is, and the scores are then averaged to produce a final rating. The rating can be between 0 and 100, with 0 denoting extreme pessimism and 100 denoting extreme optimism.
Here is a list of the indicators used in the calculations and how their ratings are determined:
🔹All Moving Averages
Buy — MA value < price
Sell — MA value > price
Neutral — MA value = price
🔹Ichimoku Cloud
Buy — base line < price and conversion line crosses price from below and lead line 1 > price and lead line 1 > lead line 2
Sell — base line > price and conversion line crosses price from above and lead line 1 < price and lead line 1 < lead line 2
Neutral — neither Buy nor Sell
🔹Relative Strength Index
Buy — indicator < 30 and rising
Sell — indicator > 70 and falling
Neutral — neither Buy nor Sell
🔹Stochastic
Buy — main line < 20 and main line crosses over the signal line
Sell — main line > 80 and main line crosses under the signal line
Neutral — neither Buy nor Sell
🔹Commodity Channel Index
Buy — indicator < -100 and rising
Sell — indicator > 100 and falling
Neutral — neither Buy nor Sell
🔹Average Directional Index
Buy — indicator > 20 and +DI line crosses over -DI line
Sell — indicator > 20 and +DI line crosses under -DI line
Neutral — neither Buy nor Sell
🔹Awesome Oscillator
Buy — saucer and values are greater than 0, or cross over the zero line
Sell — saucer and values are lower than 0, or cross under the zero line
Neutral — neither Buy nor Sell
🔹Momentum
Buy — indicator values are rising
Sell — indicator values are falling
Neutral — neither Buy nor Sell
🔹MACD
Buy — main line values > signal line values
Sell — main line values < signal line values
Neutral — neither Buy nor Sell
🔹Stochastic RSI
Buy — downtrend and K and D lines < 20 and K line crosses over D line
Sell — uptrend and K and D lines > 80 and K line crosses under D line
Neutral — neither Buy nor Sell
🔹Williams Percent Range
Buy — indicator < lower band and rising
Sell — indicator > upper band and falling
Neutral — neither Buy nor Sell
🔹Bulls and Bears Power
Buy — uptrend and BearPower < zero and BearPower is rising
Sell — downtrend and BullPower > zero and BullPower is falling
Neutral — neither Buy nor Sell
🔹Ultimate Oscillator
Buy — UO > 70
Sell — UO < 30
Neutral — neither Buy nor Sell
The TRI can assist traders and investors in determining possible entry and exit opportunities as well as the intensity and direction of the current trend. Using the TRI, you may evaluate various assets and determine which ones are outperforming or underperforming the market.
📊How to access the indicator:
The technical rating indicator comes free with your TradingView account and you can access it by utilizing the indicator search tab.
📊How to read the indicator
The technical rating indicator can help you detect trends very early. It is displayed as a column chart by default. When the columns are closing above the 0 line, it indicates that there is more bullish confluence from multiple indicators, and when below 0 there is more bearish confluence.
You may have also noticed that the colors are gradient Allowing the user to determine the intensity of a trend. :
The price being bearish or bullish is an indication that most of the indicators used in the calculation are indicating sell or buy.
Important note: Whenever the indicator is indicating a strong sell or buy usually the oscillators will be saying the opposite. This is due to the nature of how the indicators operate. See illustration below for explanation.
If you would like to focus on finding reversals verses trend or vice versa you can adjust the settings of the indicator to either focus on moving averages or oscillators. Moving averages being trend based and oscillators being reversals.
Here are some additional settings of the indicator:
1: This is where you can adjust what timeframe you would like the indicator to be based on. For example you can be on the 1Hr timeframe and get information on the daily timeframe.
2: Use these settings to determine what timeframe information you would like to see on the table
3: This is the table that displays information about other timeframes.
📊Some of the advantages of using the TRI are:
🔹 It simplifies the technical analysis by providing a single number that summarizes the overall technical condition of an asset.
🔹 It eliminates the subjective interpretation of individual indicators and reduces the risk of conflicting signals.
🔹 It adapts to different time frames and market conditions by using dynamic thresholds and weights for each indicator.
🔹 It can be customized by choosing different indicators and parameters according to personal preferences and trading styles.
📊Some of the limitations of using the TRI are:
🔸 It does not take into account fundamental factors, such as earnings, news, or economic data, that can affect the price of an asset.
🔸 It does not provide specific trading signals or recommendations, but rather a general overview of the technical situation.
🔸 It may lag behind the actual price movements, especially in fast-moving or choppy markets.
🔸 It may generate false or misleading signals, especially in sideways or range-bound markets.
The TRI is not a magic formula that guarantees success in trading or investing. It is a useful tool that can complement other methods of analysis and decision making. As with any technical indicator, it is important to use it with caution and common sense, and to test it on historical data before applying it to real trading situations.
C Nicholas Downie
