How it Works | Pi Signals
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User Guide

Current Version:

Pi Signals 5.0.4

- Turn on/off any indicator from the Indicator Settings by just checking/unchecking the option you prefer to see on the chart. -

The lines/text colors selection was done considering high visibility and smooth functioning in different color theme (Light & Dark Mode).

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1. BUY/ SELL Signals

  • The buy/ sell signals are generated based on historical data and a range of number of candles.

  • The Entry price will show close price by default. Users must avoid entering a trade if a candle is not closed yet, because this candle could look a lot different by the time it closes.

  • Target price and SL is calculated based on ATR(Average True Range). Wider stop and targets indicate more volatility, while narrower stop and targets indicate less volatility. By default, the SL/TP1 is set at 1:1 R/R ratio and TP2 is set to 1:2 and so on. User can change the inputs based on risk appetite.

2. Auto Trend-lines

  •   Trend-lines are a commonly used tool in technical analysis for identifying trends in the stock market. 

  •  They are drawn by connecting two or more points on a stock chart using a straight line. 

  • Determine support and resistance levels: The trend line can help you identify potential support and resistance levels for the stock. In an uptrend, the trend line can act as a support level, and in a downtrend, it can act as a resistance level.

  • Wait for a breakout: Once you have identified the support and resistance levels, wait for the stock to break through the trend line before making a trade. A breakout through the trend line could indicate a continuation of the trend, while a break below the trend line could indicate a reversal.

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3. Support & Resistance

  •  Support and resistance levels are important concepts in technical analysis that can help traders identify potential entry and exit points in the stock market. Here's a brief overview of how support and resistance levels work:

  • Support level: A support level is a price level where the demand for a stock is strong enough to prevent it from falling further. Traders often look for support levels as potential entry points for buying a stock, because they believe that the stock is likely to bounce back up from that level.

  • Resistance level: A resistance level is a price level where the supply of a stock is strong enough to prevent it from rising further. Traders often look for resistance levels as potential exit points for selling a stock, because they believe that the stock is unlikely to break through that level.

4. Higher High and Lower Low

  • It’s a real time RSI and MA based Overbought (Higher High) and Oversold (Lower Low) indicator. 

  • Higher high: A higher high occurs when the stock's price reaches a new high that is higher than the previous high. This is an indication that the stock is in an uptrend.

  • Lower low: A lower low occurs when the stock's price reaches a new low that is lower than the previous low. 

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5. Trend and Consolidation

  • A sideways market, also known as a range-bound market or consolidation phase, occurs when a  stock or market is trading within a defined range without a clear trend.  In other words, the price of the stock is moving sideways rather than  up or down. 

  • Our Indicator shows Green and Red candles that represent the trend/breakout on the chart whereas, the yellow candles are indicative of a sideways movement/consolidation. Best visuals on Heikin Ashi chart. Refer to "Heikin Ashi Setup" below for more insight.

6. Opening Range Breakout

  • This indicator is primarily used on Index.Plots High and Low value of the first (5 min recommended) candle of the day. This strategy is also known as ORB / Opening Range Breakout, is a popular trading strategy in technical analysis that involves identifying the high and low price range of a stock during a set period of time, wherein you can execute a trade when the price breaks High or Low of that range. 

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7. Fill TP/SL Background

  • This option is simply used to fill the TP/SL background with green and red color.

8. Find Gaps

  •  When a stock price gap is observed, by a chance of 90% it will get filled in the future. It is not true that it will come back or go up to fill the gap within few trading sessions, sometimes it can and sometimes it may take long. 

  • Identify the type of gap: There are three types of gaps: breakaway gaps, runaway gaps, and exhaustion gaps. Breakaway gaps occur at the beginning of a trend, runaway gaps occur in the middle of a trend, and exhaustion gaps occur near the end of a trend. Each type of gap requires a different trading strategy.

  • Determine the significance of the gap: The size and volume of the gap can provide clues to the significance of the gap. A larger gap with high volume indicates a stronger price movement and a higher probability of a sustained trend.

  • Identify the direction of the gap: The direction of the gap can provide clues to the direction of the trend. A gap that opens higher than the previous close is a bullish gap, indicating a potential uptrend, while a gap that opens lower than the previous close is a bearish gap, indicating a potential downtrend.

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9. Auto Fibonacci Levels

  • Fibonacci levels are used in technical analysis to identify potential support and resistance levels in financial markets. The levels are based on mathematical ratios derived from the Fibonacci sequence.

  •  Identify the trend: Determine whether the market is trending upward or downward. You can use various technical indicators to confirm the trend, such as moving averages, trend-lines, or price action analysis.

  • Identify the swing points: Swing points are the high and low points of the trend. In an uptrend, swing points are the peaks of the price chart, while in a downtrend, swing points are the troughs. Identify the two most recent swing points to draw a Fibonacci retracement.

  • Indicator automatically plots the Fibonacci retracement levels between the two swing points (Swing High and Swing Low). The most used retracement levels are 38.2%, 50%, and 61.8%.

  • NOTE: This indicator is repainted so it is not advisable for trading on smaller time frames because nobody can guess where the exact Top and Bottom is. It works better on 30 mins or higher timeframes.

10. EMA Cloud and EMA lines

  • EMA Cloud is based on any two defined EMA values. The EMA crossover/ cross-under will switch the color (green: red) and plots an arrow at every cross. Also, plot EMA/SMA lines based on any values and color defined in the inputs.

  • Moving averages are a commonly used technical analysis tool that helps traders identify trends and potential entry or exit points in financial markets. A moving average is simply the average price of an asset over a specified period of time, and it is calculated by taking the sum of the closing prices over that period and dividing it by the number of periods.

  • There are two main types of moving averages: simple moving averages (SMA) and exponential moving averages (EMA). The SMA gives equal weight to all data points over the specified period, while the EMA gives more weight to recent data points.

  • By default, our Indicator has 50, 100 and 200 EMA pre-defined.However, you can change the number, line thickness and color as per your choice from Indicator Settings.

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11. Bollinger Bands

  • ​Bollinger Bands, a technical indicator developed by John Bollinger, are used to measure a market's volatility and identify “overbought” or “oversold” conditions. John Bollinger. Basically, this little tool tells us whether the market is quiet or whether the market is LOUD!
    It consist of three bands—an upper, middle and lower band—that are used to spotlight extreme short-term prices in a security. The upper band represents overbought territory, while the lower band can show you when a security is oversold.

12. Supply & Demand Zones

  • Supply and demand zones are specific price levels in the markets where there are lots of pending orders. Institutions use complex algorithms to find these important areas where the forces of supply and demand intersect.

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13. Heikin Ashi Setup

  • If you prefer to use Heikin Ashi candle stick over normal candles, then you are the right place. 

  • Our indicator detects Doji candles on plot them in purple color. Generally, continuous Doji candle indicates exhaustion and potential trend reversals. 

  • We have got two additional indicator settings called "Downtrend" and "Uptrend." 

  • Wherein, you need to follow the small "Down" or "Up" arrow plotted above or below the candle. 

  • This gives a trader confidence to HOLD if the arrows keep plotting. 

  • Do not panic or exit immediately even if one or two candles missed the arrow as long as the candle color is red or green. 

  • Plan the exit from the trade once multiple Yellow or Purple (Doji) candles are plotted indicating a likely trend reversal.

  • Do not forget to enable 'Trend and Consolidation' option for candle color .

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Wish you a profitable journey with Pi Signals

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