Indicators
Technical, fundamental, and compound indicators used in conditions.
# Indicators
An **indicator** is any numerical value used in a condition. Indicators are the building blocks of your trading logic. NexusTrade supports three categories of indicators.
## Technical Indicators
Technical indicators are computed from an asset's price and volume history. They fall into two families:
### Mean Reversion Indicators
These assume that when an asset's price deviates significantly from its average, it will tend to revert back.
- **Simple Moving Average (SMA):** The average closing price over N days. A rising SMA suggests an uptrend.
- **Exponential Moving Average (EMA):** Like SMA but gives more weight to recent prices, making it more responsive.
- **Bollinger Bands:** SMA with upper and lower bands at ± standard deviations. Price touching the lower band may signal oversold conditions.
### Momentum Indicators
These assume that assets moving in a direction will continue moving that way.
- **Relative Strength Index (RSI):** Oscillates between 0-100. Below 30 is considered oversold, above 70 overbought.
- **MACD (Moving Average Convergence Divergence):** Measures the relationship between two EMAs. Signal line crossovers indicate trend changes.
- **Rate of Change (ROC):** Measures the percentage change in price over N periods.
### Other Technical Indicators
- **Asset Price:** The current price of any asset.
- **Volume:** Trading volume over a period.
- **Position Value:** The current dollar value of your position in an asset.
- **Position Percent Change:** How much your position has gained or lost in percentage terms.
For a complete reference of all available indicators with parameters, see the [Technical Indicators Reference](/docs/indicators/technical-indicators).
## Fundamental Indicators
Fundamental indicators are derived from a company's financial statements. They require a paid subscription.
- **Revenue, Net Income, Gross Profit:** Income statement metrics.
- **PE Ratio, Price-to-Book:** Valuation ratios.
- **Dividend Yield:** Annual dividend as a percentage of share price.
- **Free Cash Flow:** Cash generated after capital expenditures.
- **Market Cap, Enterprise Value:** Company size metrics.
- **Debt-to-Equity:** Leverage ratio.
For the complete list, see the [Fundamental Indicators Reference](/docs/indicators/fundamental-indicators).
## Compound Indicators
Compound indicators let you combine indicators using math operators:
| Operator | Example | Meaning |
|----------|---------|---------|
| Add (+) | SMA(50) + 10 | The 50-day SMA plus 10 |
| Subtract (-) | Price - SMA(200) | Distance between price and 200-day SMA |
| Multiply (×) | ATR(14) × 2 | Two times the 14-day ATR |
| Divide (÷) | Price ÷ EMA(50) | Price relative to 50-day EMA |
| Square Root (√) | √(Volume) | Square root of volume |
Compound indicators allow you to express sophisticated quantitative ideas without code. For example, you could create a condition that buys when the ratio of Price to SMA(200) crosses below 0.95 (meaning the price is more than 5% below the 200-day average).