trading template
Explain an indicator honestly
What it measures, what it can't, and where it fails.
Use this templateOpens the composer with the prompt filled in. Free — an emailed code is all you need.
The prompt
Copy it, or use the button above to drop
it straight into the composer. Everything in [SQUARE BRACKETS] is a
slot you fill in.
Explain [INDICATOR NAME] to me properly. My level: [BEGINNER / INTERMEDIATE / I KNOW THE FORMULA BUT NOT THE INTUITION] Market and timeframe I use: [MARKET, TIMEFRAME] Cover: 1. What it literally computes, in plain language, then the formula. 2. What market behaviour it is trying to measure — and the assumption that makes it meaningful at all. 3. What it lags, smooths or throws away. Every indicator loses information; name what this one loses. 4. The conditions where it is actively misleading, with the mechanism (not just "in choppy markets" — say why chop breaks it). 5. What it is commonly paired with, and whether that pairing is genuinely complementary or just two views of the same data. 6. The most common way traders misread it. No win rates, no backtest figures, no "this works 70% of the time" claims. If a number would need real data, say what data.
When to use it
- You want the mechanism behind a setup explained, not a verdict
- You're reviewing your own execution and want the pattern in it
- An indicator is in your chart and you don't fully trust it yet
Which mode suits it
This is analysis, not brainstorming: you want figures carried through exactly and no invented statistics.
- Precise — shorter, fact-first, no padding