Signal Settings
Last updated
Last updated
Copyright © Lune Trading. Disclaimer: Past performance is not indicative of future results. Our content is for educational and informational purposes only, reflecting our perspectives and not professional financial advice. Trading and investing is risky.
The Signal Mode feature provides a customizable approach to the signals displayed on your chart, offering three distinct options: None, Confirmation, and Contrarian. This feature enhances your ability to tailor the tool to your specific trading needs and strategy. Whether you're looking to trade in line with the trend, identify potential reversals, or maintain a simpler chart for analysis, Signal Mode empowers you with the flexibility to choose the mode that best fits your approach.
You can select which Signal Mode you would like to use in your indicator settings:
| Signal Mode (Dropdown Options) | Description |
|---|---|
None | No signals shown. |
Confirmation | Helps confirm trend direction. |
Contrarian | Identifies potential trend changes and reversals. |
Select the Signal Mode: Choose the most suitable signal mode - None, Confirmation, or Contrarian - based on your individual trading strategy. 'None' is ideal for a clean chart, 'Confirmation' aligns with trend-following strategies, and 'Contrarian' is suited for identifying potential reversals.
Interpret the Signals: In 'Confirmation' mode, use the signals to reinforce your understanding of the current trend. In 'Contrarian' mode, view them as early warnings of potential market reversals.
Utilizing Clarity AI: Incorporate the signal ratings from Clarity AI to evaluate the quality and significance of the signals. A high rating suggests strong confluence and confidence, while a low rating indicates lesser reliability.
Combine with Other Tools: For a more rounded analysis, use Signal Mode in conjunction with other analytical tools and methods. This integrated approach provides a broader perspective on the market.
Balanced Use of Signals and Personal Judgment: While Signal Mode offers valuable insights, it should be used as one of several factors in your decision-making process, complementing rather than replacing your own market analysis and judgment.
IMPORTANT: Please remember that these signal modes are intended to help users get optimal signals for their trading style. Their intended usage is meant to form confluence within your technical analysis or strategy and they are not meant to be followed blindly. Past performance is not necessarily indicative of future results.
The Signal Configuration settings offer a tailored approach to managing the signals on your chart. These settings, including Signal Sensitivity and Signal Velocity, allow for personalization of signal frequency and responsiveness. This customization is vital for aligning the tool with your individual trading strategies and preferences, whether you're engaged in rapid day trading or more measured, long-term market analysis.
You can adjust the number in the settings to display the Signals based on sensitivity and velocity. By adjusting these parameters, you determine how responsive the signals are to market changes. A lower number makes the signals more sensitive to short-term changes, while a higher number decreases the sensitivity, making the signals more attuned to long-term changes:
| Signal Sensitivity (User Input) | Description |
|---|---|
Minimum: 1 | Low numbers are more responsive to recent changes. |
Maximum: 25 | High numbers are less responsive to recent changes. |
| Signal Velocity (Dropdown Options) | Description |
|---|---|
Auto | Adjusts automatically based on your Sensitivity Settings. |
Fast | More Sensitive to long-term price changes. |
Mid | Moderately Sensitive to long-term price changes. |
Slow | Less Sensitive to long-term price changes. |
Adjust the Settings: Tailor the Signal Sensitivity and Signal Velocity to fit your trading style. Short-term traders might benefit from lower settings for more immediate market responses, while long-term traders may prefer higher settings that filter out short-term market noise and focus on longer-term trends.
Monitor Signal Output: Closely observe the signals after adjusting these settings. It's essential to understand how varying sensitivities and velocities impact the type and frequency of signals you receive.
Regular Review and Adaptation: Regularly review the effectiveness of your configured settings, especially as market conditions or your trading strategy evolves. Be ready to fine-tune the settings to maintain alignment with your trading objectives.
Balance Between Frequency and Quality: Find a balance in the settings that provides a comfortable mix of signal frequency and quality. Avoid settings that may overwhelm you with signals or, conversely, provide too few insights.
Experimentation for Optimal Settings: Experiment with different configurations to find the optimal setup for your trading style. This process can be a valuable learning experience, providing insights into the interaction between market behavior and signal settings.
The ultimate goal of the Signal Configuration feature is to allow for personalized control over your analysis tools, helping you align the tools with your specific trading style. Experiment with the settings, and with practice, you'll find the balance that works best for you.
Settings Signal Sensitivity: 14 Signal Velocity: Fast
Trade Exits, in tandem with our Signal Modes, offer a dynamic and real-time approach to optimize your trade exits. These are conveniently represented by a green or red 'x' on your chart, providing a clear visual cue. This feature is instrumental in assisting you to strategically exit trades and secure profits.
You can enable the Trade Exits feature in your indicator settings:
Active Monitoring for 'X' Markers: Keep a vigilant eye on your chart for the appearance of a green or red 'x'. These markers are crucial indicators for suggesting optimal exit points.
Interpreting the 'X' Colors: Understand that a green 'x' signals a favorable time to close a long position, indicating bullish exhaustion or a potential trend reversal. Conversely, a red 'x' suggests an ideal moment to exit a short position, pointing towards bearish fatigue or a change in trend.
Informed Decision Making: Use these exit points to make calculated decisions about taking profits or cutting losses. The timing of your exit can significantly impact the overall success of a trade.
Tool for Decision Support: Remember that these indicators serve as tools to support and enhance your decision-making process. They should not be the sole factor in deciding when to exit a trade.
The Clarity AI Ratings feature enhances your chart analysis by assigning a rating between 0-5 to each signal, leveraging advanced machine learning algorithms to assess market trends and their reliability. Ratings on the lower end (0 or 1) typically represent signals of lower quality and confidence. In contrast, higher ratings (4 or 5) usually indicate signals of superior quality, marked by greater confluence and confidence.
You can enable the Clarity AI Rating feature in your indicator settings:
Regularly Check Signal Ratings: Pay close attention to the numerical ratings assigned to each signal, ranging from 0 to 5. These ratings are key indicators of the signal's quality and reliability.
Interpret Ratings Accurately: Understand that lower ratings (0 or 1) typically indicate signals with lesser reliability and confidence. Conversely, higher ratings (4 or 5) suggest signals that are stronger and more dependable.
Prioritize High-Rated Signals: Consider giving more weight to signals with higher ratings in your trading decisions. These signals are generally more trustworthy and may offer better opportunities for successful trades.
Integrate with Overall Strategy: Use Clarity AI Ratings as a component of your comprehensive trading strategy. While these ratings are valuable, they should be considered alongside other analyses and market indicators for a well-rounded approach.
Balanced Decision-Making: Avoid relying solely on AI ratings for making trading decisions. Balance these ratings with your market knowledge, experience, and our other tools.
Risk Management: Incorporate the signal ratings into your risk management strategy. Higher-rated signals might offer safer entry points or help in setting more strategic stop-loss orders.
The Advanced Algorithm feature is a robust tool specifically designed to enhance your trading strategy by efficiently filtering out false signals and prioritizing higher-quality ones. Currently, this feature is tailored exclusively for Confirmation Signals. It relies on a custom, sophisticated algorithm that zeroes in on strong signals, emphasizing the importance of confluence in trading decisions.
You can enable the Advanced Algorithm feature in your indicator settings:
Integration into Trading Strategy: Incorporate the signals from the Advanced Algorithm as a component of your overall trading strategy. Utilize the high-quality signals identified by the algorithm to make more informed trading decisions.
Filtering Out Noise: Use the Advanced Algorithm to filter out less reliable signals or market 'noise.' This helps in maintaining a clear focus on more probable trading opportunities and avoids potential distractions from less significant market movements.
Combination with Other Tools: While the Advanced Algorithm is powerful, it should not be the sole tool for decision-making. Combine its insights with other analytical tools and market indicators for a well-rounded approach to trading.
Risk Management: Incorporate the algorithm's signals into your risk management practices. Use these signals to identify potential entry and exit points, and to set appropriate stop-loss orders.
| Advanced Algorithm Disabled | Advanced Algorithm Enabled |
|---|---|
