StoxAI Indicator Guide
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cmkkaranStoxAI Indicator Guide
Uploaded by
cmkkaranStoxAI Magic Trend Indicator
- Simple Guide
Figure 1: Navigation Map - Quick Reference to Key Sections
What Does This Indicator Do?
Combines 12 technical indicators into a single 0-10 score measuring market trend direction.
1. Score Ranges - The Only Table You
Need
Zone Range Trend What It Means
🟢 Green 7-10 Uptrend
Most indicators
show upward price
movement
🟡 Yellow 4-7 Sideways
Indicators are
mixed, no clear
direction
🔴 Red <4 Downtrend
Most indicators
show downward
price movement
Table 1: Score Zone Reference - Memorize this table, you'll use it every time
2. The 12 Indicators - What Each
Measures
Indicator What It Measures Simple Meaning
How fast price is moving
MACD Momentum speed
up or down
If price has gone too high
RSI Overbought/oversold
or too low
Where price is within its
Stochastic Price position
recent range
How strong the trend
Vortex Direction strength
direction is
Is price accelerating or
Momentum Rate of change
slowing down
Where trend might change
PSAR Reversal points
direction
Which direction price is
DMI Directional movement
moving
Is money flowing in or out
MFI Money flow
of the stock
Fisher Reversal signals When trend might reverse
How strong the overall
ADX Momentum Trend strength
trend is
A line showing current
Supertrend Trend line
trend direction
Average price without
ZL EMA Smoothed price
noise
Table 2: 12 Technical Indicators Breakdown
Remember: Each indicator votes "Uptrend", "Downtrend", or "Neutral". The overall score
combines all 12 votes.
3. How The Overall Score Works
The score is a weighted average of all 12 indicators:
∑ (𝐼𝑛𝑑𝑖𝑐𝑎𝑡𝑜𝑟 𝑉𝑎𝑙𝑢𝑒×𝑊𝑒𝑖𝑔ℎ𝑡)
𝑂𝑣𝑒𝑟𝑎𝑙𝑙 𝑆𝑐𝑜𝑟𝑒 =
∑ 𝐴𝑙𝑙 𝑊𝑒𝑖𝑔ℎ𝑡𝑠
Important insight:
• 9 indicators saying "Uptrend" doesn't mean score will be 7+
• Why? Because the 3 "Downtrend" indicators might have higher weights
• Weights matter more than count
Example:
• 9 indicators say Uptrend, each with weight 0.5
• 3 indicators say Downtrend, each with weight 2.0
• Result: Score might be 3.2 (Red zone) because downtrend indicators have more
influence
4. How To Read The Indicator - 6
Simple Steps
Step 1: Look at the Overall Score (right side panel)
Step 2: Find which zone it's in:
• 7-10? → Green (Uptrend)
• 4-7? → Yellow (Sideways)
• <4? → Red (Downtrend)
Step 3: Count the indicators in the table:
• How many say Bullish (Uptrend)?
• How many say Bearish (Downtrend)?
• How many say Neutral?
Step 4: Check if score and indicators agree:
• Do they point in the same direction? → Good alignment
• Do they conflict? → Market might be transitioning
Step 5: Look at the strength numbers (first number in brackets):
• Numbers near 0-3 = Strong downtrend signal
• Numbers near 7-10 = Strong uptrend signal
• Numbers near 4-6 = Weak/unclear signal
Step 6: Check the timeframe:
• 15-minute = Very short-term view
• 1-hour = Short-term view
• Daily = Medium-term view
• Higher timeframe is usually more reliable
5. What The Table Shows You
What You See What To Do
This tells you the direction each indicator
State column (Bullish/Bearish/Neutral)
sees
First number (0-10 scale) Shows how strong that indicator's signal is
Shows how much this indicator affects the
Second number (0-1 scale)
overall score
See which direction has the most
Count all 12 rows
indicators
Compare to Overall Score Check if they match or conflict
Table 4: Reading the Indicator Table
6. Alignment - Do Indicators Agree?
Alignment Type What It Means Example
Score and most indicators Score 2.8 + 7 indicators say
Strong Alignment
point same direction downtrend ✓
Score and indicators point Score 3.2 + 9 indicators say
Weak Alignment
different directions uptrend ✗
Score 5.6 + mixed
No Alignment Indicators are split evenly
indicators
Table 5: Indicator Alignment Types
Simple rule:
• ✓ Agreement = More reliable
• ✗ Conflict = Be cautious, market may be changing
7. Understanding Timeframes
Timeframe What It Shows When To Use
Understanding overall
Daily Bigger picture trend
market direction
1-Hour Medium-term moves Watching for trend changes
Fine-tuning entry/exit
15-Minute Quick movements
points
Table 6: Timeframe Hierarchy
Important: If daily shows downtrend but 15-minute shows uptrend → Market is likely
transitioning.
8. Quick Reference - Value Meanings
Indicator Values (0-10):
• 0-3 = Strong signal in one direction
• 4-6 = Weak or unclear signal
• 7-10 = Strong signal in opposite direction
States:
• Bullish = Uptrend direction
• Bearish = Downtrend direction
• Neutral = No clear direction
10. Practical Tips For Beginners
Best Practices:
• ✅ Start with the Overall Score - This is your main reference point
• ✅ Check the Zone - Green/Yellow/Red tells you the market state instantly
• ✅ Count the indicators - See if most agree or disagree
• ✅ Look for alignment - When score and indicators agree, signals are more reliable
• ✅ Use higher timeframes - Daily chart is more reliable than 15-minute
• ✅ Watch for conflicts - When score and indicators disagree, wait for clarity
• ✅ Note the weights - High-weight indicators (1.5-2.0) have more influence
Cautions:
• ⚠️ Don't trade on indicator alone - Always combine with other analysis
• ⚠️ Sideways zone (4-7) means wait - Market direction is unclear
• ⚠️ Conflicting signals mean caution - Market might be transitioning
Key Takeaways
The 3 Most Important Things:
1. Overall Score is king - Always check this first (7-10 green, 4-7 yellow, <4 red)
2. Check alignment - Do score and indicators agree? Agreement = reliable
3. Higher timeframe wins - Daily chart is more important than 1-hour or 15-minute
Remember: This indicator shows what technical measurements say about trend direction.
It's one tool among many. Always use proper risk management and combine with other
analysis methods.