Knowledge base
Technical indicators & predictive models
26 indicators used by our strategy engine. From classic trend-following to ML-based forecasting — each with definition, formula, signals, and how Gilito uses it.
Trend
Moving Averages
Smooths price data to reveal the underlying trend direction by averaging closing prices over a defined period.
MACD
Measures the distance between two EMAs to identify trend direction, momentum shifts, and potential reversals.
Average Directional Index
Measures the strength of a trend regardless of direction, helping traders distinguish trending from ranging markets.
Parabolic SAR
A trailing stop-and-reverse system that plots dots above or below price to track trend direction and suggest exit points.
Ichimoku Cloud
A multi-component system that defines trend, momentum, support, and resistance in a single visual framework using five lines.
Momentum
Relative Strength Index
Measures the speed and magnitude of recent price changes to identify overbought and oversold conditions on a 0–100 scale.
Stochastic Oscillator
Compares closing price to its price range over a period, measuring momentum with a 0–100 oscillator sensitive to recent extremes.
Elder Force Index
Combines price direction, magnitude, and volume to measure the force behind each price move.
Williams %R
An inverse stochastic oscillator ranging from -100 to 0, measuring where price closed relative to the period's high-low range.
Rate of Change
Measures the percentage change in price over a defined period to directly quantify price momentum.
Volatility
Bollinger Bands
Dynamic bands placed above and below a moving average at a set number of standard deviations, adapting to market volatility.
Average True Range
Measures market volatility as the average of true ranges, used for position sizing, stop placement, and volatility filtering.
Commodity Channel Index
Measures deviation of typical price from its moving average, normalized by mean deviation, to identify cyclical overbought/oversold conditions.
Volume
On-Balance Volume
A cumulative volume indicator that adds volume on up days and subtracts it on down days to track buying and selling pressure.
Relative Volume
Compares current volume to its historical average, showing whether today's trading activity is unusually high or low.
Accumulation/Distribution Line
Weights volume by the close's position within the bar's range to build a cumulative measure of buying versus selling pressure.
VWAP
The average price weighted by volume for the trading session, used as a benchmark and dynamic support/resistance by institutional traders.
Money Flow Index
A volume-weighted RSI that measures buying and selling pressure on a 0–100 scale, often called the volume-weighted RSI.
Predictive
Linear Regression
Fits a straight line through recent price data using least-squares to estimate the current trend direction and forecast near-term price levels.
Logistic Regression
A statistical classifier that estimates the probability of a binary outcome (e.g., price up or down) from multiple input features.
ARIMA
An autoregressive integrated moving average model that forecasts future values using patterns in the time series' own past values and errors.
GARCH
Models and forecasts time-varying volatility by capturing the clustering of large price moves that characterize financial markets.
SARIMA
Extends ARIMA with seasonal components to model and forecast time series with recurring periodic patterns.
Random Forest
An ensemble of decision trees trained on bootstrapped data samples, combining predictions to reduce overfitting and improve generalization.
LSTM Neural Networks
Long Short-Term Memory recurrent neural networks that learn temporal dependencies in price sequences for multi-step return forecasting.
K-Means Clustering
An unsupervised machine learning technique that groups market states or assets into clusters based on similarity, enabling regime detection and portfolio construction.