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DCA bots: indicators and technical analysis (Deal start conditions and Deal close conditions)
DCA bots: indicators and technical analysis (Deal start conditions and Deal close conditions)

Learn how to use Technical Analysis indicators to start new bot deals or close an active deal!

Updated over 2 months ago

Before we start with the indicators description, discover the power of TradingView charts in our latest video guide. Learn how to use them for advanced technical analysis and gain a deeper understanding of market dynamics. This knowledge will help you configure your 3Commas bot brigade to be more optimized for the current market and flexible enough to take advantage of future market conditions.

List of available indicators:

Triggers (conditions) to start or close the trade:

  1. Less Than - the signal to open the deal will be produced if the indicator's value is below the specified level;

  2. Greater Than - the signal to open the deal will be produced if the indicator's value is above the specified level;

  3. Crossing Down - the signal to open the deal will be produced if the indicator's value crosses the specified level from top to bottom;

  4. Crossing Up - the signal to open the deal will be produced if the indicator's value crosses the specified level from bottom to top.

Not all these triggers are supported by all indicators. Some indicators may support for example, only Less Than or Greater Than.

Here is an example of Crossing Up the level 20 from bottom to top for MFI-14 (same for RSI and other indicators):

1 - the candle 1 (06:00-06:59) closes and MFI is below 20;
2 - the candle 2 (07:00-07:59) closes and MFI is above 20 => the MFI line "crosses" the level 20;
3 - condition is met; thus, the trade starts right at the beginning of the 3rd candle (at 08:00, green line on the screenshot).

IMPORTANT THINGS TO REMEMBER

  1. All these conditions evaluate their values only when the candle is closed on the chart within a specified time frame.

  2. If the condition is met and the signal is received, then it's valid during the current candle until it's closed. Then it will be reassessed again. This means that you could potentially have a deal open immediately right after a previous deal closes during the active candle.
    For example, RSI has a timeframe of 1H (1 hour), and the deal started right after the previous candle was closed, let's say at 13:00. If this deal was closed within 15 minutes, the next deal might* be opened right away again at 1:15 pm as the signal from RSI is valid for 1 hour until 13:59:59.

    *depends on the bot's other settings.

  3. If you believe that the condition was met, but the deal did not start or close correctly, please head to the exchange's website and look at the pair's chart on the exchange itself (not on the TradingView.com website) to check if the conditions were really met.
    3Commas takes the trading data from the exchanges directly and not from the TradingView.com website. This data is used to form the candles, the same as on the exchange. Sometimes exchanges' chart's candles (thus, indicators) display slightly different information and candles than on TradingView.com charts. These little differences may cause indicators to behave differently if you check them on TradingView.com. For example, the TradingView.com charts do not count candles with 0 trading volume.

  4. Not all exchanges on 3Commas support some or all of the indicators. Our team is working on making them available for all exchanges supported on 3Commas.

    Also, this article doesn't explain the indicators themselves, but there will be links to the articles with all the detailed information.


Indicators.

RSI

Details.

RSI (or Relative Strength Index) is an indicator where you can set the following settings:

  1. RSI period - between 2 and 30;

  2. Timeframe - between 3 minutes and 1 week;

  3. Condition level - Less Than, Greater Than, Crossing Down, Crossing Up;

  4. Signal Value - between 1 and 100.

A Long bot and a Short bot can trigger a deal using the same Signal value.
Learn more in this article about what the RSI indicator is and how it works.

Ultimate Oscillator

Details.

Ultimate Oscillator (or just UO) indicator is a technical analysis tool used to measure momentum across three varying timeframes.

This indicator uses 7, 14, and 28 as its default lengths but they can be changed.

You can change the following parameters:

  1. Fast Length - between 1 and 100;

  2. Middle Length - between 1 and 100;

  3. Slow Length - between 1 and 100;

  4. Condition - Less Than, Greater Than, Crossing Down, Crossing Up;

  5. Signal Value - between 1 and 100;

  6. Timeframe - between 3 minutes and 1 day.

By default, a Long bot triggers after the candle is closed and its ULT is Crossing Up the Signal Value 50.
By default, a Short bot triggers after the candle is closed and its ULT is Crossing Down the Signal Value 50.

Learn more in this article about how the UO indicator works.

Bollinger Bands B%

Details.

Bollinger Bands %B (or just BB%) is an indicator derived from the standard Bollinger Bands (BB) indicator. Like standard BB, it also uses 1 and 2 as standard deviations.
You can choose the following settings:

  1. BB% Period - between 2 and 200;

  2. Deviation - 1 or 10;

  3. Timeframe - min 3 Minutes, max 1 day;

  4. Condition - Less Than, Greater Than, Crossing Down, Crossing Up;

  5. Signal value - between -2 and 2.

Moving Average (MA)

Details.

This indicator calculates and plots two moving averages, Fast MA and Slow MA, and highlights the bar where they cross. It is an indicator that shows when a trend is changing in the short term and getting either weaker or stronger.

You can choose the following settings:

  1. MA Type - SMA or EMA;

  2. Fast MA - between 2 and 200 (100 for EMA);

  3. Slow MA - between 2 and 200 (100 for EMA);

  4. Condition - Crossing Up, Less Than, Greater Than, Crossing Down;

  5. Timeframe - between 3 minutes and 1 day.

More details about EMA (Exponential Moving Average) indicator are in this article.

More details about SMA (Smoothed Moving Average) indicator are in this article.

Average Directional Index

Details.

The Average Directional Index (or ADX) is a specific indicator used to determine the strength of a trend. The trend can be going either up or down, which is shown by two indicators that often accompany ADX - the Positive Directional Indicator, commonly known as +DI, and the Negative Directional Indicator, also known as -DI. For this reason, the average directional index is presented with three separate lines, symbolizing each indicator. Each line is used to help assess a trade and whether or not it should take long or short, if at all. The ADX indicator on TradingView does not display the +DI and -DI lines by itself, but you can use the Directional Movement Index (DMI) indicator to see all three at the same time. Thus, on 3Commas you can change only these settings:

  1. ADX and DI Length - between 2 and 100 (14 by default);

  2. Timeframe - between 3 minutes and 1 day;

  3. Condition - Less Than, Greater Than, Crossing Down, Crossing Up (Greater Than is by default);

  4. Signal value - between 1 and 100 (1 by default).

Stochastic

Details.

This indicator is Stochastic, it is not Stochastic RSI, please don't get confused!

The Stochastic Oscillator (or Stoch) is a range-bound momentum oscillator.

The Stochastic indicator is designed to display the location of the close compared to the high/low range over a user-defined number of periods. Typically, the Stochastic Oscillator is used for three things - to identify overbought and oversold levels, to spot divergences, and to identify bull and bear setups or signals.

You can choose the following settings:

  1. K Length - between 1 and 100 (14 by default);

  2. K Smoothing - between 1 and 100 (1 by default);

  3. D Smoothing - between 1 and 100 (3 by default);

  4. K Condition - Less Than, Greater Than, Crossing Down, Crossing Up (Long Signal - Less Than, Short Signal - Greater Than are by default);

  5. K Signal Value - between 1 and 100 (Long Signal - 20, Short Signal - 80 are by default);

  6. Condition - Long signal - K Crossing Up D, Short Signal - K Crossing Down D;

  7. Timeframe - between 3 minutes and 1 day.

The calculation is a bit complicated, but the main logic is that K line crosses D line. However, we suggest heading to this article to learn more detailed information about how Stochastic indicator works.

MACD

Details.

MACD can be used to identify aspects of a security's overall trend. It employs two Moving Averages of varying lengths to identify trend direction and duration. Then, MACD takes the difference in values between those two Moving Averages (MACD Line) and an EMA of those Moving Averages (Signal Line) and plots that difference between the two lines as a histogram oscillating above and below a center Zero Line.

A Long bot triggers the deal after the candle is closed and the value of the MACD line is < 0 and the MACD line crosses the Signal line from bottom to top.
This condition remains true until the lines move above the 0 value on the y-axis or the signal line crosses below the slower MA line.

A Short bot triggers the deal after the candle is closed and the value of the MACD line is > 0 and the MACD line crosses the Signal line from top to bottom.
The crossing algorithm works the same way as explained above.

You can edit the following settings:

  • Fast Length - between 2 and 100;

  • Slow Length - between 2 and 100;

  • Signal Length - between 1 and 100;

  • MACD Trigger - Crossing Up or Crossing Down;

  • Line Trigger - Less Than 0 or Greater Than 0;

  • Timeframe - between 3 minutes and 1 day.

Parabolic SAR

Details.

Parabolic SAR (or just SAR) is a time and price technical analysis tool primarily used to identify points of potential stops and reverses. In fact, the SAR in Parabolic SAR stands for "Stop and Reverse". The indicator's calculations create a parabola which is located below price during a Bullish Trend and above Price during a Bearish Trend. SAR is most commonly displayed as a dotted line that is charted alongside an asset’s price.

By default, a Long bot triggers the deal when the candle is closed ABOVE the SAR line and has a dot UNDER this candle (the price line Crosses Up the SAR line).

By default, a Short bot triggers the deal after the candle is closed BELOW the line and has a dot ABOVE this candle (the price line Crosses Down the SAR line).
The crossing algorithm works the same way as explained above.


LONG deal situation:
1 - this candle is closed ABOVE the dotted line; thus, the dot appeared UNDER this candle, not above;

2 - this is the candle when the LONG deal would start (at the beginning of it); the signal is valid during this entire candle period.

SHORT deal situation:

3 - the candle is closed BELOW the dotted line, thus, the dot appeared ABOVE the candle, not under;

4 - this is the candle when the SHORT deal would start (at the beginning of it); the signal is valid during this entire candle period.

In this indicator, you can change the following settings:

  1. Increment - between 0.01 and 1 (0.02 by default);

  2. Maximum - between 0.1 and 10 (0.2 by default);

  3. Condition - Crossing Up, Crossing Down;

  4. Timeframe - between 3 minutes and 1 day.

Money Flow Index

Details.

The Money Flow Index (or MFI) indicator is used in technical analysis to measure buying and selling pressure. This is done by analyzing both price and volume. When the MFI rises, this indicates an increase in buying pressure. When it falls, this indicates an increase in selling pressure. The Money Flow Index can generate several signals, notably overbought and oversold conditions, divergences, and failure swings.

You can choose the following settings:

  1. MFI Length - between 2 and 100 (14 by default);

  2. Timeframe - between 3 minutes and 1 day;

  3. Condition - Less Than, Greater Than, Crossing Down, Crossing Up;

  4. Signal Value - between 1 and 100 (1 by default).

The example and explanation of the "crossing" process are given at the beginning of the article.

Commodity Channel Index (CCI)

Details.

The Commodity Channel Index (or CCI) is a momentum oscillator used in technical analysis primarily to identify overbought and oversold levels by measuring an instrument's variations away from its statistical mean. Besides overbought/oversold levels, CCI is often used to find reversals as well as divergences.

The signal is created when the line crosses the specified level (Signal Value) or the candle closes with the CCI value above or under the specified Signal Value.

You can choose the following settings:

  1. Length - between 2 and 200 (20 by default);

  2. Timeframe - between 3 minutes and 1 day;

  3. Condition - Less Than, Greater Than, Crossing Down, Crossing Up;

  4. Signal Value - between -200 and 200

Heikin Ashi

Details.

Heikin Ashi is a type of candle on the chart.
You can choose between 1 and 10 candles in a row to assess the signal.

The timeframe can be chosen from 3 minutes to 1 day.


A Long bot triggers the deal if the 1-10 GREEN Heiken Ashi candles in a row are closed.
A Long deal will be closed if the 1-10 RED Heiken Ashi candles in a row are closed.


A Short bot triggers the deal if 1-10 RED Heiken Ashi candles in a row are closed.

A Short deal will be closed if the 1-10 GREEN Heiken Ashi candles in a row are closed.


Combining multiple conditions with TA

Combining various TA conditions is possible. All conditions link with logic AND, so ALL of them should be TRUE to let the bot open a new deal or close the trade.

For example, you can configure the bot to buy when RSI-14 is below 30 AND when BB% is below 0:

Note!

The following Deal start conditions or Deal close conditions can only be used solely (you cannot combine them with other conditions):

  • ASAP

  • Manual/API

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