Crypto & Stock Technical Analysis

Crypto & Stock Technical Analysis

Multi-indicator technical analysis system that generates high-confidence trading signals by combining 29+ proven algorithms. Features divergence detection, Bollinger Band squeeze alerts, volume confirmation, and a 7-tier signal system. Ideal for cryptocurrency and stock market analysis.

Core Workflow

1. Data Acquisition

Fetch historical price data from any supported source:

CoinGecko (via MCP tools):

Use coingecko_get_historical_chart tool with:
- coin_id: Target cryptocurrency (e.g., 'bitcoin', 'ethereum')
- days: Time range ('7', '30', '90', '365', 'max')
- vs_currency: Base currency (default 'usd')

Other Supported Sources:

• Exchange APIs (Binance, Coinbase, etc.) - OHLCV format
• Yahoo Finance - Stock data
• Any price-only data - Automatic OHLC approximation

Minimum Requirements:

• At least 100 data points for reliable analysis (50 minimum)
• Price data required, volume recommended
• Recent data preferred for active trading signals

2. Convert Data to OHLCV Format

The generic data converter auto-detects and normalizes any supported format:

from scripts.data_converter import normalize_ohlcv, validate_data_quality

# Auto-detect format and convert
ohlcv_df, metadata = normalize_ohlcv(raw_data, source="auto")

# Check conversion quality
print(f"Format detected: {metadata['detected_format']}")
print(f"Rows: {metadata['original_rows']} -> {metadata['final_rows']}")
print(f"Warnings: {metadata['warnings']}")

# Validate data quality
quality_report = validate_data_quality(ohlcv_df)

Backward compatible with old CoinGecko converter:

from scripts.data_converter import prepare_analysis_data
ohlcv_df = prepare_analysis_data(coingecko_json_data)

3. Run Technical Analysis

Execute the analyzer with prepared data:

from scripts.ta_analyzer import TechnicalAnalyzer
import json

# Initialize analyzer with OHLCV data
analyzer = TechnicalAnalyzer(ohlcv_df)

# Run comprehensive analysis
results = analyzer.analyze_all()

# Display results
print(json.dumps(results, indent=2))

4. Interpret Results

Analysis returns comprehensive data including new features:

{
  "scoreTotal": 8.5,
  "tradeSignal": "STRONG_UPTREND",
  "tradeSignal7Tier": "STRONG_BUY",
  "tradeTrigger": true,
  "currentPrice": 45234.56,
  "priceChange24h": 3.45,
  "confidence": 0.75,
  "normalizedScore": 0.42,
  "volumeConfirmation": 0.85,
  "squeezeDetected": false,
  "divergences": {
    "RSI": "NONE",
    "MACD": "NONE",
    "OBV": "NONE"
  },
  "individualScores": {
    "RSI": 1.0,
    "MACD": 1.0,
    "BB": 0.75,
    "OBV": 0.8,
    "ICHIMOKU": 1.0,
    ...
  },
  "individualSignals": {
    "RSI": "BUY",
    "MACD": "BUY",
    "BB": "BUY",
    ...
  },
  "regime": {
    "regime": "TRENDING",
    "adx": 32.5,
    "dmiDirection": "UP"
  },
  "warnings": []
}

7-Tier Signal System (NEW):

• STRONG_BUY: High confidence bullish (normalized >= 0.5, confidence >= 0.7)
• BUY: Moderate confidence bullish (normalized >= 0.35, confidence >= 0.5)
• WEAK_BUY: Low confidence bullish (normalized >= 0.2)
• NEUTRAL: No clear direction
• WEAK_SELL: Low confidence bearish (normalized <= -0.2)
• SELL: Moderate confidence bearish (normalized <= -0.35, confidence >= 0.5)
• STRONG_SELL: High confidence bearish (normalized <= -0.5, confidence >= 0.7)

Legacy Signal Interpretation (backward compatible):

• scoreTotal >= 7.0: STRONG_UPTREND - High confidence bullish signal
• scoreTotal 3.0-6.9: NEUTRAL - Mixed signals, wait for clarity
• scoreTotal < 3.0: DOWNTREND - Bearish signal, avoid longs

Divergence Types:

• BULLISH_DIV: Price lower low + indicator higher low = potential reversal up
• BEARISH_DIV: Price higher high + indicator lower high = potential reversal down
• HIDDEN_BULLISH: Trend continuation signal in uptrend
• HIDDEN_BEARISH: Trend continuation signal in downtrend
• NONE: No divergence detected

Available Indicators (29)

Core Indicators (10) - Weight: 1.0

• RSI (Relative Strength Index) - Momentum oscillator with divergence detection
• MACD (Moving Average Convergence Divergence) - Trend-following momentum with divergence
• BB (Bollinger Bands) - NEW: Volatility bands with squeeze detection
• OBV (On-Balance Volume) - NEW: Volume-price divergence indicator
• ICHIMOKU (Ichimoku Cloud) - NEW: Multi-component trend system (crypto-optimized 10/​30/​60)
• EMA (Exponential Moving Average) - Short/​long crossover
• SMA (Simple Moving Average) - Short/​long crossover
• MFI (Money Flow Index) - Volume-weighted RSI
• KDJ (Stochastic with J line) - Overbought/​oversold with momentum
• SAR (Parabolic SAR) - Trend reversal detection

Strong Indicators (5) - Weight: 0.75

• DEMA (Double Exponential MA) - Reduced lag moving average
• MESA (MESA Adaptive MA) - Ehlers Hilbert Transform based
• CCI (Commodity Channel Index) - Cyclical trend identification
• AROON - Trend timing indicator
• APO (Absolute Price Oscillator) - Trend strength

Supporting Indicators (14) - Weight: 0.5

• ADX (Average Directional Index) - Trend strength
• DMI (Directional Movement Index) - Trend direction
• CMO (Chande Momentum Oscillator) - Modified RSI
• KAMA (Kaufman Adaptive MA) - Volatility-adjusted MA
• MOMI (Momentum) - Rate of price change
• PPO (Percentage Price Oscillator) - Normalized MACD
• ROC (Rate of Change) - Percentage momentum
• TRIMA (Triangular MA) - Smoothed moving average
• TRIX (Triple Exponential MA) - Smoothed momentum
• T3 (Tillson T3) - Low-lag smooth MA
• WMA (Weighted MA) - Linearly weighted
• VWAP (Volume Weighted Average Price) - NEW: Institutional reference
• ATR_SIGNAL (ATR Volatility Signal) - NEW: Volatility-based signals
• CAD (CMO with Regime-Aware Mean Reversion) - Adaptive momentum

See references/​indicators.md for detailed indicator explanations.

Usage Patterns

Quick Analysis

For rapid assessment of a single cryptocurrency:

1. Call coingecko_get_historical_chart for target coin (7-30 days)
2. Convert data using coingecko_converter
3. Run ta_analyzer.analyze_all()
4. Present scoreTotal and tradeSignal to user

Comparative Analysis

To compare multiple cryptocurrencies:

1. Call coingecko_compare_coins for target coins
2. For each coin:
   - Fetch historical chart data
   - Run technical analysis
   - Store results
3. Create comparison table with scores and signals
4. Identify strongest/​weakest performers

Deep Dive Analysis

For comprehensive assessment with context:

1. Fetch multiple timeframes (7d, 30d, 90d)
2. Run analysis on each timeframe
3. Check for signal agreement across timeframes
4. Review individual indicator signals for divergences
5. Cross-reference with market data (market cap, volume, dominance)
6. Provide detailed report with confidence levels

Trend Monitoring

For ongoing market surveillance:

1. Fetch current data for watchlist
2. Run analysis on all coins
3. Filter for STRONG_UPTREND signals (score >= 7)
4. Rank by score descending
5. Present top opportunities with context

Best Practices

Data Quality

• Always validate data quality before analysis using validate_data_quality()
• Ensure minimum 100 data points (preferably 200+)
• Check for missing values or data gaps
• Use appropriate timeframe for user's trading strategy

Interpretation Guidelines

• Never rely on single indicator - the power is in consensus
• Consider market context - indicators behave differently in trending vs ranging markets
• Watch for divergences - when price contradicts indicators, reversal may be coming
• Volume confirms price - MFI provides crucial validation
• Multiple timeframes - confirm signals across different periods

Common Patterns

High Conviction Bullish (STRONG_BUY):

• 7-tier signal: STRONG_BUY or BUY
• Confidence >= 0.7
• RSI between 30-70 (not overbought)
• MACD bullish crossover
• Price above Ichimoku cloud
• OBV confirms with no bearish divergence
• Volume confirmation >= 0.7
• ADX > 25 (strong trend)

Breakout Setup:

• Bollinger Band squeeze detected (squeezeDetected: true)
• ADX rising from < 20
• Volume starting to increase
• Watch for band expansion

Trend Exhaustion Warning:

• Score > 7 BUT RSI > 80 or MFI > 90
• Bearish divergence on RSI, MACD, or OBV
• Price above Bollinger upper band (%B > 1.0)
• Potential reversal or pullback incoming

Divergence-Based Reversal:

• Bearish divergence: Prepare for potential top
• Bullish divergence: Watch for potential bottom
• OBV divergence is most reliable (volume precedes price)

False Breakout:

• Strong price move BUT ADX < 20
• Low volume (volumeConfirmation < 0.5)
• OBV not confirming price move
• Likely whipsaw or temporary spike

Ichimoku Confirmation:

• Price above cloud + Tenkan above Kijun = Strong bullish
• Price below cloud + Tenkan below Kijun = Strong bearish
• Price inside cloud = No-trade zone, wait for clarity

Limitations

CoinGecko Data Considerations

• CoinGecko provides price points, not true OHLC bars
• Converter approximates OHLC from adjacent prices
• Works well for trend analysis, less precise for intraday patterns

Indicator Nature

• Most indicators are lagging - calculated from past data
• Can generate whipsaws in choppy, sideways markets
• Overfitting risk - too many indicators can cause analysis paralysis
• Market regime changes require adaptation

Recommended Use Cases

✅ Great for: Trend identification, medium-term signals, portfolio screening
✅ Good for: Entry/​exit timing, risk assessment, comparative analysis
⚠️ Limited for: High-frequency trading, precise intraday timing, ranging markets
❌ Avoid for: News-driven moves, low-liquidity coins, extreme volatility events

Advanced Techniques

Custom Scoring Weights

Modify indicator weights based on market conditions:

• Trending markets: Increase weight of MACD, EMA, ADX
• Ranging markets: Increase weight of RSI, CCI, Stochastic
• High volatility: Increase weight of SAR, KAMA (adaptive indicators)

Multi-Timeframe Confirmation

Analyze same coin across multiple timeframes:

- 7 days (short-term trend)
- 30 days (medium-term trend)  
- 90 days (long-term trend)

Strongest signals occur when all timeframes agree.

Sector Analysis

Analyze multiple coins in same sector to identify:

• Sector-wide trends vs individual coin movements
• Relative strength leaders
• Laggard coins with catch-up potential

Troubleshooting

Issue: Score stuck at 0 or very low

Cause: Insufficient data or flat price action
Solution: Fetch longer historical period or check data quality

Issue: Conflicting signals across indicators

Cause: Market in transition or ranging
Solution: Score will be neutral - wait for clearer direction

Issue: High score but bearish user intuition

Cause: Indicators lag price, or news-driven move
Solution: Cross-reference with market context, recent news, volume

Issue: Analysis fails with NaN values

Cause: Insufficient data for indicator calculation
Solution: Fetch minimum 100 data points, preferably 200+

Integration with CoinGecko MCP

This skill is designed to work seamlessly with CoinGecko MCP tools:

Primary Tools Used:

• coingecko_get_historical_chart - Main data source
• coingecko_get_price - Quick current price checks
• coingecko_compare_coins - Multi-coin analysis
• coingecko_get_market_data - Context and validation

Workflow Integration:

1. User asks about a cryptocurrency
2. Use CoinGecko tools to fetch data
3. Convert to OHLCV format
4. Run technical analysis
5. Present results with context from market data

Example Outputs

Simple Analysis Response

Bitcoin Technical Analysis (7-day period)

📊 7-Tier Signal: STRONG_BUY
🎯 Confidence: 78%
💰 Current Price: $45,234.56 (+3.45% 24h)
📈 Volume Confirmation: 85%

Key Indicators:
✅ RSI: BUY (38.2 - healthy level, no divergence)
✅ MACD: BUY (bullish crossover, no divergence)
✅ Bollinger: BUY (price near upper band, no squeeze)
✅ OBV: BUY (volume confirms trend, no divergence)
✅ Ichimoku: BUY (price above cloud)
✅ Volume: ACCUMULATION (MFI bullish)

Warnings: None

Recommendation: Strong buy signal with volume confirmation.
No divergences or overbought conditions detected.

Comparative Analysis Response

Top 5 Cryptocurrencies by Technical Score (30-day analysis)

1. Solana (SOL): 9.0 - STRONG_UPTREND
   - All momentum indicators bullish
   - Strong volume confirmation
   
2. Ethereum (ETH): 7.5 - STRONG_UPTREND
   - Trending higher, minor overbought warning
   
3. Bitcoin (BTC): 5.0 - NEUTRAL
   - Consolidating after recent move
   
4. Cardano (ADA): 2.5 - DOWNTREND
   - Multiple bearish signals
   
5. XRP: 1.0 - DOWNTREND
   - Weak momentum and volume

Related Resources

• Indicator Details: See references/​indicators.md
• Core Analysis Engine: scripts/​ta_analyzer.py
• Data Converter: scripts/​coingecko_converter.py