1126 lines
40 KiB
Markdown
1126 lines
40 KiB
Markdown
# Technical Analysis Skill
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## Description
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Automatically analyzes OHLCV (Open, High, Low, Close, Volume) data across multiple timeframes to identify candlestick patterns, support/resistance levels, trend formations, and key price levels when users ask about price movements, patterns, or technical analysis.
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## When This Skill Activates
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Claude will use this skill when:
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- User asks about price patterns or formations
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- User mentions: "Is this bullish?", "I see a double top", "What's the support level?"
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- User requests technical analysis for a trading pair
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- User asks about candlestick patterns or trends
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- User wants to identify breakout/breakdown levels
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- User mentions chart patterns like head-and-shoulders, triangles, flags
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- User asks about moving averages or price trends
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**Examples that trigger this skill:**
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- "What's happening with the price of this pool?"
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- "I see a triple bottom forming on Base..."
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- "Can you analyze the 4h chart?"
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- "Is this a bullish breakout?"
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- "What's the resistance level here?"
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- "Looks like a head and shoulders pattern..."
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- "Can you spot patterns in this OHLCV data?"
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## How It Works
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When activated, this skill performs comprehensive technical analysis:
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### Stage 1: Input Validation & Data Retrieval
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- Extract network, pool address, and desired timeframe from context
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- Call `getCapabilities()` to normalize network names
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- Determine analysis timeframes (5m, 15m, 1h, 4h, 1d, 1w)
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- Call `getPoolOHLCV(network, pool_address, start, interval)` to fetch historical data
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- Typically fetch 100+ candles for robust pattern detection
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### Stage 2: Data Processing
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**Candlestick Analysis:**
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- Calculate body size (close - open)
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- Calculate wicks (high - low)
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- Determine candle type: bullish/bearish/doji/hammer/shooting star
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- Identify candlestick characteristics:
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- Long-legged doji (indecision)
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- Hammer (potential reversal bottom)
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- Shooting star (potential reversal top)
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- Spinning top (indecision)
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- Marubozu (strong directional)
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**Support & Resistance:**
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- Identify swing lows (support levels)
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- Identify swing highs (resistance levels)
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- Determine strength by counting bounces off level
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- Calculate: previous S/R, current distance, breakout potential
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**Trend Analysis:**
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- Calculate simple trend using HLC (high, low, close)
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- Identify: higher highs/higher lows (uptrend), lower highs/lower lows (downtrend)
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- Determine trend strength: strong/moderate/weak
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- Calculate trend lines: connect swing points
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- Identify: breakout, breakdown, consolidation
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**Technical Indicators Calculation:**
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**Moving Averages:**
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- **EMA 9** (short-term) - Fast momentum indicator
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- **EMA 21** (medium-term) - Balance between fast and slow
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- **EMA 50** (long-term) - Overall trend direction
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- **EMA 200** (very long-term) - Major trend filter
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- Interpret: Price above all EMAs = strong uptrend, below all = strong downtrend
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- Golden Cross: EMA 9 crosses above EMA 50 = bullish signal
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- Death Cross: EMA 9 crosses below EMA 50 = bearish signal
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**RSI (Relative Strength Index) - 14 period:**
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- Range: 0-100
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- **Overbought** (RSI > 70): Asset may be overextended, potential pullback
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- **Oversold** (RSI < 30): Asset may be underdeveloped, potential bounce
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- **Neutral (30-70)**: Normal trading range
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- **Divergence Detection**:
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- Bullish divergence: Price makes lower low but RSI makes higher low (reversal signal up)
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- Bearish divergence: Price makes higher high but RSI makes lower high (reversal signal down)
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**MACD (Moving Average Convergence Divergence):**
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- Calculate: MACD line = EMA 12 - EMA 26
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- Signal line = EMA 9 of MACD line
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- Histogram = MACD - Signal line
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- **Signals:**
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- MACD crosses above signal line = bullish (potential buy)
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- MACD crosses below signal line = bearish (potential sell)
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- Histogram positive = bullish momentum
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- Histogram negative = bearish momentum
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- Histogram expanding = strengthening move
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- Histogram contracting = weakening move
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- **Extreme zones:**
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- MACD far above signal = momentum strong but potentially overbought
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- MACD far below signal = momentum weak or oversold
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**VWAP (Volume Weighted Average Price):**
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- Calculate: Cumulative(Typical Price × Volume) / Cumulative Volume
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- Typical Price = (High + Low + Close) / 3
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- **Interpretation:**
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- Price above VWAP = institutional buying accumulation
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- Price below VWAP = institutional selling distribution
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- Price approaching VWAP = reversion likely
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- Break above VWAP with volume = strong bullish
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- Break below VWAP with volume = strong bearish
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- **Use as:**
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- Dynamic support/resistance
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- Entry/exit zones
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- Trend confirmation indicator
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### Stage 3: Pattern Recognition
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**Bullish Patterns:**
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```
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Double Bottom: Two lows at similar level + upward breakout
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Triple Bottom: Three lows at similar level + strong upward move
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Head & Shoulders Inverse: Lower high, lower low, higher high + breakout
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Ascending Triangle: Higher lows, flat resistance + breakout up
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Wedge (Rising): Narrowing range, upward bias + breakout
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V-Shape Recovery: Sharp down, sharp up - strong reversal
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Hammer: Small body, long lower wick - reversal at support
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Engulfing Bullish: Red candle followed by green engulfing it
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```
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**Bearish Patterns:**
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```
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Double Top: Two highs at similar level + downward breakdown
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Triple Top: Three highs at similar level + strong downward move
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Head & Shoulders: Higher high, higher low, lower high + breakdown
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Descending Triangle: Lower highs, flat support + breakout down
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Wedge (Falling): Narrowing range, downward bias + breakdown
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Inverted Hammer: Small body, long upper wick - reversal at resistance
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Engulfing Bearish: Green candle followed by red engulfing it
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Dark Cloud Cover: Large green candle followed by large red candle
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```
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**Neutral Patterns:**
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```
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Rectangle/Consolidation: Price bouncing between support/resistance
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Pennant: Small consolidation triangle after big move
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Continuation Flag: Small channel in direction of trend
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Symmetrical Triangle: Converging highs and lows, unclear direction
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```
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### Stage 4: Multi-Timeframe Analysis
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Analyze across timeframes:
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1. **Daily (1d)** - Overall trend and major support/resistance
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2. **4-Hour (4h)** - Intermediate trend and consolidations
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3. **1-Hour (1h)** - Short-term momentum and entry points
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4. **15-Minute (15m)** - Very short-term price action (if available)
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**Confluence:** When patterns align across timeframes, strength increases
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### Stage 5: Report Generation
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## Output Format
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```
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[TECHNICAL ANALYSIS: Pool Name]
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═══════════════════════════════════════════════════════════
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ANALYSIS TIMEFRAME: [4h / 1d / 1h etc]
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Analysis Date: [timestamp]
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CURRENT PRICE STRUCTURE
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━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
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Current Price: $X.XXXX
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24h High: $X.XXXX
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24h Low: $X.XXXX
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Range: $X.XXXX (+X% volatility)
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SUPPORT & RESISTANCE LEVELS
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━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
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Resistance 1: $X.XXXX (-X% away) [Strong, 5 bounces]
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Current Price: $X.XXXX
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Support 1: $X.XXXX (-X% away) [Strong, 4 bounces]
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Support 2: $X.XXXX (-X% away) [Moderate, 2 bounces]
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TREND ANALYSIS
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━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
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Overall Trend: [BULLISH / BEARISH / CONSOLIDATING]
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Trend Strength: [STRONG / MODERATE / WEAK]
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Higher Highs: ✓ [Yes] / ✗ [No]
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Higher Lows: ✓ [Yes] / ✗ [No]
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Last 24h Movement: +X% (bullish) / -X% (bearish)
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PATTERN RECOGNITION
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━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
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Active Pattern: [Pattern Name]
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Pattern Stage: [Early / Mid / Late / Completion]
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Significance: [Major reversal / Continuation / Consolidation]
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Reliability: X% confidence
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Breakout Target: $X.XXXX (+X%)
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Breakdown Target: $X.XXXX (-X%)
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CANDLESTICK ANALYSIS
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━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
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Last 5 Candles:
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[Candle 5, oldest] - [Type]: [Description]
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[Candle 4] - [Type]: [Description]
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[Candle 3] - [Type]: [Description]
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[Candle 2] - [Type]: [Description]
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[Candle 1, newest] - [Type]: [Description] ← Current
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Volume Analysis
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━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
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Volume Trend: [Increasing / Decreasing / Stable]
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Volume on Up Days: [X% above average] - [Strong / Weak]
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Volume on Down Days: [X% above average] - [Strong / Weak]
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Volume Confirmation: [Yes / No] ← Does volume confirm price move?
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TECHNICAL INDICATORS
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━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
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Moving Averages (Price Relationship):
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EMA 9 (fast): $X.XXXX [Price above/below/at EMA]
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EMA 21 (medium): $X.XXXX [Price X% above/below]
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EMA 50 (trend): $X.XXXX [Price X% above/below]
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EMA 200 (major): $X.XXXX [Price X% above/below]
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Alignment: ✓ [All aligned bullish] / ⚠️ [Mixed] / ✗ [All aligned bearish]
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Golden Cross: ✓ [EMA 9 above EMA 50 - BULLISH] / ✗ [Not present]
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Death Cross: ✓ [EMA 9 below EMA 50 - BEARISH] / ✗ [Not present]
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RSI (Relative Strength Index - 14 period):
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Current RSI: [XX] [Overbought / Normal / Oversold]
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Zone: [Above 70 / 30-70 / Below 30]
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Divergence: ✓ [Bullish divergence detected] / ✗ [None / ⚠️ [Bearish divergence detected]]
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Strength: [Strong trend / Weak trend]
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MACD (Moving Average Convergence Divergence):
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MACD Line: [Positive / Negative] - [Above / Below] signal line
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Signal Line: [Value]
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Histogram: [Positive (Bullish) / Negative (Bearish)] [Expanding / Contracting]
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Signal Strength: [Strong / Moderate / Weak]
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Momentum Status: [Accelerating / Decelerating]
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VWAP (Volume Weighted Average Price):
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VWAP Level: $X.XXXX
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Position: Price [X%] [above / below] VWAP
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Interpretation: [Institutional buying / Normal trading / Institutional selling]
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Support/Resistance: [Strong VWAP support] / [VWAP acting as resistance]
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Signal: [Price approaching VWAP = reversion likely] / [Breaking VWAP with volume]
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Indicator Confluence:
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EMAs: [Bullish alignment / Mixed signals / Bearish alignment]
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RSI + MACD: [Both confirm bullish] / [Divergence warning] / [Both confirm bearish]
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VWAP + Price: [Price respecting VWAP] / [Potential breakout] / [Reversal likely]
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Overall Strength: [Very Strong (4-5 indicators align)] / [Moderate] / [Weak (conflicting)]
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MULTI-TIMEFRAME ANALYSIS
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━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
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Daily (1d): [Bullish / Bearish / Neutral] - [Pattern]
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4-Hour (4h): [Bullish / Bearish / Neutral] - [Pattern]
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1-Hour (1h): [Bullish / Bearish / Neutral] - [Pattern]
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Confluence: [2-3 timeframes align = STRONG signal]
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KEY OBSERVATIONS
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━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
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• [Specific finding with data]
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• [Pattern confirmation with candle count]
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• [Volume or momentum insight]
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• [Risk/opportunity assessment]
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TECHNICAL OUTLOOK
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━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
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Short-term (1-4h): [Bullish / Bearish / Neutral]
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Medium-term (1-3d): [Bullish / Bearish / Neutral]
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Key Events:
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✓ Watch: [Specific level or pattern completion]
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✓ Support Break Below: [Level] = [Implication]
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✓ Resistance Break Above: [Level] = [Implication]
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RISK/REWARD ASSESSMENT
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━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
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If Bullish Pattern Triggers:
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Entry: $X.XXXX (breakout)
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Target: $X.XXXX (+X%)
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Risk: $X.XXXX (-X%)
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R/R Ratio: 1:X
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If Bearish Pattern Triggers:
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Entry: $X.XXXX (breakdown)
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Target: $X.XXXX (-X%)
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Risk: $X.XXXX (+X%)
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R/R Ratio: 1:X
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LIMITATIONS & CONTEXT
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━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
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• Technical analysis shows probability, not certainty
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• Combine with fundamental analysis and market context
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• DEX pools are less liquid than centralized exchanges
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• Price can be affected by: bridge swaps, arbitrage, manipulation
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• Recent pools (<30 days) have less reliable pattern history
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Data from: DexPaprika | [N] candles analyzed | [timestamp]
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```
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## Tools Available
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You have access to:
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- `getPoolOHLCV(network, pool_address, start, interval)` - Fetch historical candlestick data
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- `getPoolDetails(network, pool_address)` - Current pool state and volume
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- `getPoolTransactions(network, pool_address)` - Recent trading activity
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- `getTokenDetails(network, address)` - Token metrics
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- `getCapabilities()` - Network synonyms and validation
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**Important**: These indicators are NOT provided by the API. You must calculate them from the raw OHLCV data returned by `getPoolOHLCV()`. Use the calculation formulas below.
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---
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## Indicator Calculation Guide
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This section provides the exact formulas and step-by-step instructions to calculate all technical indicators from OHLCV data.
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### Understanding OHLCV Data Format
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Each candle contains:
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```
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{
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"timestamp": 1234567890,
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"open": 100.00, // Price at candle open
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"high": 105.50, // Highest price in candle
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"low": 98.20, // Lowest price in candle
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"close": 102.30, // Price at candle close
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"volume": 1500000 // Trading volume in period
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}
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```
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All calculations work on a series of these candles (typically 50-100 candles).
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---
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### 1. EMA (Exponential Moving Average) Calculation
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**EMA Formula:**
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```
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EMA = (Close - EMA_previous) × Multiplier + EMA_previous
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Where:
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Multiplier = 2 / (Period + 1)
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For EMA 9: Multiplier = 2 / (9 + 1) = 0.2
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For EMA 21: Multiplier = 2 / (21 + 1) = 0.0909
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For EMA 50: Multiplier = 2 / (50 + 1) = 0.0196
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For EMA 200: Multiplier = 2 / (200 + 1) = 0.0099
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```
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**Step-by-Step Calculation:**
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```
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Step 1: Calculate initial SMA (Simple Moving Average)
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SMA = Sum of last N closes / N
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Example for EMA 9 with closes: [100, 101, 99, 102, 98, 103, 100, 105, 104]
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SMA = (100+101+99+102+98+103+100+105+104) / 9 = 101.33
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Step 2: Calculate first EMA (equals the SMA)
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EMA[9] = 101.33
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Step 3: For each subsequent candle, apply formula
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EMA_new = (Close - EMA_old) × 0.2 + EMA_old
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Example: Next close = 106
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EMA = (106 - 101.33) × 0.2 + 101.33
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EMA = 4.67 × 0.2 + 101.33
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EMA = 0.934 + 101.33
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EMA = 102.264
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Step 4: Repeat Step 3 for all remaining candles
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```
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**Pseudocode for Claude:**
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```
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function calculateEMA(closes, period):
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multiplier = 2 / (period + 1)
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// Calculate initial SMA
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sma = sum(closes[0:period]) / period
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ema_values = [sma]
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current_ema = sma
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// Calculate EMA for each subsequent candle
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for i from period to length(closes):
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current_ema = (closes[i] - current_ema) * multiplier + current_ema
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ema_values.append(current_ema)
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return ema_values
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```
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---
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### 2. RSI (Relative Strength Index - 14 period) Calculation
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**RSI Formula:**
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```
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RSI = 100 - (100 / (1 + RS))
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Where:
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RS = Average Gain / Average Loss
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Average Gain = Sum of all positive price changes / 14
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Average Loss = Sum of all negative price changes / 14
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```
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**Step-by-Step Calculation:**
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```
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Step 1: Calculate price changes
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For each candle (starting from candle 2):
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change = close[i] - close[i-1]
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if change > 0: gain = change, loss = 0
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if change < 0: gain = 0, loss = abs(change)
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if change = 0: gain = 0, loss = 0
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Example with closes: [100, 102, 101, 105, 103, 107, 106, 109, 108]
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Changes: [2, -1, 4, -2, 4, -1, 3, -1]
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Gains: [2, 0, 4, 0, 4, 0, 3, 0]
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Losses: [0, 1, 0, 2, 0, 1, 0, 1]
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Step 2: Calculate Average Gain and Average Loss (first 14 candles)
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Avg_Gain = Sum of first 14 gains / 14
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Avg_Loss = Sum of first 14 losses / 14
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Step 3: Calculate RS
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RS = Avg_Gain / Avg_Loss
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Example: Avg_Gain = 2, Avg_Loss = 1
|
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RS = 2 / 1 = 2
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Step 4: Calculate RSI
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RSI = 100 - (100 / (1 + RS))
|
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RSI = 100 - (100 / (1 + 2))
|
||
RSI = 100 - (100 / 3)
|
||
RSI = 100 - 33.33
|
||
RSI = 66.67
|
||
|
||
Step 5: For subsequent candles, use smoothed average (Wilder's method)
|
||
Avg_Gain_new = (Avg_Gain_old × 13 + New_Gain) / 14
|
||
Avg_Loss_new = (Avg_Loss_old × 13 + New_Loss) / 14
|
||
Then recalculate RS and RSI
|
||
```
|
||
|
||
**Pseudocode for Claude:**
|
||
```
|
||
function calculateRSI(closes, period = 14):
|
||
changes = []
|
||
gains = []
|
||
losses = []
|
||
|
||
// Calculate price changes
|
||
for i from 1 to length(closes):
|
||
change = closes[i] - closes[i-1]
|
||
changes.append(change)
|
||
|
||
if change > 0:
|
||
gains.append(change)
|
||
losses.append(0)
|
||
else:
|
||
gains.append(0)
|
||
losses.append(abs(change))
|
||
|
||
// Calculate average gain and loss
|
||
avg_gain = sum(gains[0:period]) / period
|
||
avg_loss = sum(losses[0:period]) / period
|
||
|
||
rsi_values = []
|
||
|
||
// Calculate RSI for each subsequent candle
|
||
for i from period to length(closes):
|
||
rs = avg_gain / avg_loss
|
||
rsi = 100 - (100 / (1 + rs))
|
||
rsi_values.append(rsi)
|
||
|
||
// Update averages (Wilder's smoothing)
|
||
avg_gain = (avg_gain * (period - 1) + gains[i]) / period
|
||
avg_loss = (avg_loss * (period - 1) + losses[i]) / period
|
||
|
||
return rsi_values
|
||
```
|
||
|
||
---
|
||
|
||
### 3. MACD (Moving Average Convergence Divergence) Calculation
|
||
|
||
**MACD Formula:**
|
||
```
|
||
MACD Line = EMA 12 - EMA 26
|
||
Signal Line = EMA 9 of MACD Line
|
||
Histogram = MACD Line - Signal Line
|
||
```
|
||
|
||
**Step-by-Step Calculation:**
|
||
|
||
```
|
||
Step 1: Calculate EMA 12 and EMA 26 from close prices
|
||
Use the EMA calculation above with periods 12 and 26
|
||
EMA_12 = calculateEMA(closes, 12)
|
||
EMA_26 = calculateEMA(closes, 26)
|
||
|
||
Step 2: Calculate MACD Line for each candle
|
||
MACD[i] = EMA_12[i] - EMA_26[i]
|
||
|
||
Example:
|
||
EMA_12 = 102.50
|
||
EMA_26 = 101.20
|
||
MACD = 102.50 - 101.20 = 1.30
|
||
|
||
Step 3: Calculate Signal Line (EMA 9 of MACD values)
|
||
Signal_Line = calculateEMA(MACD_values, 9)
|
||
|
||
Step 4: Calculate Histogram for each candle
|
||
Histogram[i] = MACD[i] - Signal_Line[i]
|
||
|
||
Example:
|
||
MACD = 1.30
|
||
Signal = 1.15
|
||
Histogram = 1.30 - 1.15 = 0.15
|
||
```
|
||
|
||
**Pseudocode for Claude:**
|
||
```
|
||
function calculateMACD(closes):
|
||
// Calculate EMAs
|
||
ema_12 = calculateEMA(closes, 12)
|
||
ema_26 = calculateEMA(closes, 26)
|
||
|
||
// Calculate MACD line
|
||
macd_line = []
|
||
for i from 0 to length(ema_12):
|
||
macd_line.append(ema_12[i] - ema_26[i])
|
||
|
||
// Calculate Signal line (EMA 9 of MACD)
|
||
signal_line = calculateEMA(macd_line, 9)
|
||
|
||
// Calculate Histogram
|
||
histogram = []
|
||
for i from 0 to length(macd_line):
|
||
histogram.append(macd_line[i] - signal_line[i])
|
||
|
||
return {
|
||
macd: macd_line,
|
||
signal: signal_line,
|
||
histogram: histogram
|
||
}
|
||
```
|
||
|
||
---
|
||
|
||
### 4. VWAP (Volume Weighted Average Price) Calculation
|
||
|
||
**VWAP Formula:**
|
||
```
|
||
VWAP = Cumulative(Typical Price × Volume) / Cumulative(Volume)
|
||
|
||
Where:
|
||
Typical Price = (High + Low + Close) / 3
|
||
```
|
||
|
||
**Step-by-Step Calculation:**
|
||
|
||
```
|
||
Step 1: Calculate Typical Price for each candle
|
||
Typical_Price = (High + Low + Close) / 3
|
||
|
||
Example:
|
||
High = 105.50, Low = 98.20, Close = 102.30
|
||
Typical_Price = (105.50 + 98.20 + 102.30) / 3 = 102.00
|
||
|
||
Step 2: Multiply Typical Price by Volume
|
||
TP_Volume = Typical_Price × Volume
|
||
|
||
Example (with Volume = 1500000):
|
||
TP_Volume = 102.00 × 1500000 = 153,000,000
|
||
|
||
Step 3: Calculate cumulative sums from start of period
|
||
Cumulative_TP_Volume = Sum of all TP_Volume values so far
|
||
Cumulative_Volume = Sum of all Volume values so far
|
||
|
||
Step 4: Calculate VWAP
|
||
VWAP = Cumulative_TP_Volume / Cumulative_Volume
|
||
|
||
Example after 5 candles:
|
||
Cumulative_TP_Volume = 500,000,000
|
||
Cumulative_Volume = 5,000,000
|
||
VWAP = 500,000,000 / 5,000,000 = 100.00
|
||
```
|
||
|
||
**Pseudocode for Claude:**
|
||
```
|
||
function calculateVWAP(candles):
|
||
// candles = [{open, high, low, close, volume}, ...]
|
||
|
||
cumulative_tp_volume = 0
|
||
cumulative_volume = 0
|
||
vwap_values = []
|
||
|
||
for each candle in candles:
|
||
// Calculate typical price
|
||
typical_price = (candle.high + candle.low + candle.close) / 3
|
||
|
||
// Accumulate
|
||
cumulative_tp_volume += typical_price × candle.volume
|
||
cumulative_volume += candle.volume
|
||
|
||
// Calculate VWAP
|
||
vwap = cumulative_tp_volume / cumulative_volume
|
||
vwap_values.append(vwap)
|
||
|
||
return vwap_values
|
||
```
|
||
|
||
**Important**: VWAP should be calculated from a specific start time (usually day start or session start). For this skill, calculate from the beginning of your analysis period.
|
||
|
||
---
|
||
|
||
### 5. Support & Resistance Level Detection
|
||
|
||
**Algorithm for Swing Lows (Support):**
|
||
```
|
||
Step 1: Identify swing lows
|
||
A swing low is a candle where:
|
||
- Its low is lower than the previous candle's low
|
||
- Its low is lower than the next candle's low
|
||
|
||
Example with lows: [100, 98, 95, 97, 96, 98, 102]
|
||
Swing lows at indices: 2 (95), 4 (96)
|
||
|
||
Step 2: Find clusters of support
|
||
Group swing lows that are within 0.5% of each other
|
||
|
||
Example: [95.00, 95.23, 95.15] → cluster at ~95.13
|
||
|
||
Step 3: Count bounce strength
|
||
Count how many times price bounced off each level
|
||
More bounces = stronger support
|
||
```
|
||
|
||
**Algorithm for Swing Highs (Resistance):**
|
||
```
|
||
Same as support, but look for highs:
|
||
A swing high is a candle where:
|
||
- Its high is higher than the previous candle's high
|
||
- Its high is higher than the next candle's high
|
||
```
|
||
|
||
**Pseudocode for Claude:**
|
||
```
|
||
function findSwingLows(candles, tolerance = 0.005):
|
||
swing_lows = []
|
||
|
||
// Find individual swing lows
|
||
for i from 1 to length(candles) - 1:
|
||
if candles[i].low < candles[i-1].low and
|
||
candles[i].low < candles[i+1].low:
|
||
swing_lows.append(candles[i].low)
|
||
|
||
// Cluster similar levels
|
||
clusters = []
|
||
for low in swing_lows:
|
||
found_cluster = false
|
||
for cluster in clusters:
|
||
if abs(low - cluster.level) / cluster.level < tolerance:
|
||
cluster.lows.append(low)
|
||
cluster.level = average(cluster.lows)
|
||
found_cluster = true
|
||
break
|
||
|
||
if not found_cluster:
|
||
clusters.append({level: low, lows: [low]})
|
||
|
||
// Return clusters sorted by strength
|
||
return sort(clusters, by length descending)
|
||
```
|
||
|
||
---
|
||
|
||
### Quick Reference: Order of Calculations
|
||
|
||
When analyzing a pool, calculate in this order:
|
||
|
||
```
|
||
1. Fetch OHLCV data with getPoolOHLCV()
|
||
2. Calculate EMA 9, 21, 50, 200 from closes
|
||
3. Calculate RSI 14 from closes
|
||
4. Calculate MACD (which uses EMA 12 and EMA 26)
|
||
5. Calculate VWAP from all candles
|
||
6. Find Support & Resistance levels from highs/lows
|
||
7. Analyze patterns (requires all above data)
|
||
8. Generate interpretation (use all indicators)
|
||
```
|
||
|
||
---
|
||
|
||
### Testing Your Calculations
|
||
|
||
**Verify your calculations are correct:**
|
||
|
||
```
|
||
✓ EMA 9 should be closer to recent prices than EMA 200
|
||
✓ RSI should always be between 0 and 100
|
||
✓ MACD histogram should oscillate around zero
|
||
✓ VWAP should be between the lowest low and highest high
|
||
✓ Support levels should cluster near actual price bounces
|
||
```
|
||
|
||
If any value is outside these ranges, recalculate - there's an error.
|
||
|
||
---
|
||
|
||
## Pattern Detection Guidelines
|
||
|
||
### Bullish Reversal Patterns (at Support)
|
||
- **Hammer**: Small body + long lower wick (2-3x body size) = potential bounce
|
||
- **Double Bottom**: Two similar lows, upbreak between them
|
||
- **V-Shape**: Sharp decline followed by sharp recovery
|
||
- **Inverse H&S**: Left shoulder higher, head lowest, right shoulder between = bullish breakout
|
||
|
||
### Bearish Reversal Patterns (at Resistance)
|
||
- **Shooting Star**: Small body + long upper wick (2-3x body size) = potential drop
|
||
- **Double Top**: Two similar highs, downbreak between them
|
||
- **H&S**: Left shoulder high, head higher, right shoulder between = bearish breakdown
|
||
- **Inverted V**: Sharp rally followed by sharp decline
|
||
|
||
### Continuation Patterns
|
||
- **Ascending Triangle**: Higher lows, flat resistance = bullish continuation
|
||
- **Descending Triangle**: Lower highs, flat support = bearish continuation
|
||
- **Flag/Pennant**: Small consolidation after big move = trend continues
|
||
- **Wedge**: Narrowing range with directional bias = breakout in bias direction
|
||
|
||
### Trend Confirmation Indicators
|
||
- **Higher Highs + Higher Lows** = Strong Uptrend
|
||
- **Lower Highs + Lower Lows** = Strong Downtrend
|
||
- **Volume confirming move** = Strong signal (volume up on breakout, volume down on pull back)
|
||
|
||
## Important Guidelines
|
||
|
||
1. **Data Sufficiency**
|
||
- Need 20+ candles minimum for pattern recognition
|
||
- 50+ candles preferred for reliability
|
||
- Very new pools may not have enough history
|
||
|
||
2. **Pattern Confirmation**
|
||
- Don't predict patterns until they're ~70% complete
|
||
- Wait for actual breakout/breakdown, not just proximity
|
||
- Multiple timeframe confluence increases confidence
|
||
|
||
3. **Volume Analysis**
|
||
- Breakouts with volume are more reliable
|
||
- Breakouts without volume are often false
|
||
- Compare to average volume (20-period average)
|
||
|
||
4. **Support/Resistance Strength**
|
||
- First touch = weak level
|
||
- Second touch = moderate level
|
||
- Third+ touches = strong level
|
||
- Show touch count in analysis
|
||
|
||
5. **Avoid Overconfidence**
|
||
- DEX pools have lower liquidity, wider spreads
|
||
- Whales can move price more easily
|
||
- Recent pools have unreliable patterns
|
||
- Use probabilities, not certainties
|
||
|
||
6. **Never Give Trading Advice**
|
||
- Present analysis objectively
|
||
- Say: "Pattern suggests potential breakout to $X"
|
||
- Don't say: "Buy at the breakout"
|
||
- Let user decide based on analysis
|
||
|
||
## Indicator Interpretation Guide
|
||
|
||
### Strong Bullish Signal (4-5 indicators align)
|
||
```
|
||
✓ All EMAs aligned bullish (price above all EMAs)
|
||
✓ RSI 30-70 or bouncing from oversold (<30)
|
||
✓ MACD above signal line with expanding positive histogram
|
||
✓ VWAP support confirmed (price above VWAP)
|
||
✓ Volume increasing on up days
|
||
→ VERY HIGH PROBABILITY BULLISH MOVE
|
||
```
|
||
|
||
### Strong Bearish Signal (4-5 indicators align)
|
||
```
|
||
✓ All EMAs aligned bearish (price below all EMAs)
|
||
✓ RSI 30-70 or declining from overbought (>70)
|
||
✓ MACD below signal line with expanding negative histogram
|
||
✓ VWAP resistance confirmed (price below VWAP)
|
||
✓ Volume increasing on down days
|
||
→ VERY HIGH PROBABILITY BEARISH MOVE
|
||
```
|
||
|
||
### Warning Signals (Indicator Divergence)
|
||
```
|
||
⚠️ Price making higher high but RSI making lower high = Bearish divergence
|
||
⚠️ EMAs showing weakness while price above = Possible false breakout
|
||
⚠️ MACD histogram shrinking = Momentum loss, reversal possible
|
||
⚠️ Price above VWAP but RSI overbought (>80) = Pullback likely
|
||
⚠️ Volume declining on breakout = Weakness, may not hold
|
||
→ CAUTION: Wait for confirmation before acting
|
||
```
|
||
|
||
### Weak/Conflicting Signals (Be Careful)
|
||
```
|
||
⚠️ Mixed EMA alignment (some bullish, some bearish)
|
||
⚠️ RSI neutral (40-60) = No clear direction
|
||
⚠️ MACD near zero line = Momentum unclear
|
||
⚠️ Price near VWAP = Indecision
|
||
→ LOW PROBABILITY MOVE - Avoid trading until clarity
|
||
```
|
||
|
||
### How to Weight Indicators (by reliability)
|
||
|
||
1. **VWAP** (Most Reliable) - Shows institutional accumulation/distribution
|
||
2. **EMA Alignment** - Clear trend confirmation across timeframes
|
||
3. **MACD** - Strong momentum and reversal signals
|
||
4. **RSI** - Best for overbought/oversold and divergence detection
|
||
5. **Volume** - Confirms all other signals
|
||
|
||
Use all 5 together for highest confidence analysis.
|
||
|
||
## Example Scenarios
|
||
|
||
### Scenario 1: Clear Bullish Pattern
|
||
User: "Analyze the 4h chart for this pool on Base"
|
||
|
||
Response:
|
||
```
|
||
[TECHNICAL ANALYSIS: ETH/USDC on Base]
|
||
|
||
═══════════════════════════════════════════════════════════
|
||
ANALYSIS TIMEFRAME: 4-Hour
|
||
Analysis Date: 2025-10-31 14:23 UTC
|
||
|
||
CURRENT PRICE STRUCTURE
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Current Price: $2,845.32
|
||
24h High: $2,920.15
|
||
24h Low: $2,680.90
|
||
Range: $239.25 (+8.9% volatility)
|
||
|
||
SUPPORT & RESISTANCE LEVELS
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Resistance 2: $2,950.00 (+3.6%) [Strong, 6 bounces]
|
||
Resistance 1: $2,880.00 (+1.2%) [Moderate, 3 bounces]
|
||
Current Price: $2,845.32
|
||
Support 1: $2,750.00 (-3.3%) [Strong, 5 bounces]
|
||
Support 2: $2,680.00 (-5.8%) [Moderate, 2 bounces]
|
||
|
||
TREND ANALYSIS
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Overall Trend: BULLISH ✓
|
||
Trend Strength: STRONG
|
||
Higher Highs: ✓ Yes (last 6 candles)
|
||
Higher Lows: ✓ Yes (last 8 candles)
|
||
Last 24h Movement: +5.2% (bullish)
|
||
|
||
PATTERN RECOGNITION
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Active Pattern: Ascending Triangle
|
||
Pattern Stage: 90% Complete (Late stage)
|
||
Significance: Bullish Continuation
|
||
Reliability: 87% confidence
|
||
Breakout Target: $2,950+ (resistance break) → $3,050 (+7%)
|
||
Breakdown Target: $2,750 (if support breaks) → $2,650 (-6%)
|
||
|
||
CANDLESTICK ANALYSIS
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Last 5 Candles:
|
||
4h ago - Bullish (Green): Strong close, higher high
|
||
3h ago - Bullish (Green): Confirming strength, consolidating
|
||
2h ago - Doji: Indecision, consolidation
|
||
1h ago - Bullish (Green): Breakout candle, higher close
|
||
Current - Hammer-like: Current candle forming near support of triangle
|
||
|
||
Volume Analysis
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Volume Trend: Increasing ↗
|
||
Volume on Up Days: +28% above average - STRONG
|
||
Volume on Down Days: -15% below average - WEAK
|
||
Volume Confirmation: YES ✓ (volume confirms uptrend)
|
||
|
||
TECHNICAL INDICATORS
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Moving Averages (Price Relationship):
|
||
EMA 9 (fast): $2,820.45 [Price +0.9% above EMA]
|
||
EMA 21 (medium): $2,795.30 [Price +1.8% above EMA]
|
||
EMA 50 (trend): $2,755.80 [Price +3.3% above EMA]
|
||
EMA 200 (major): $2,680.15 [Price +6.1% above EMA]
|
||
|
||
Alignment: ✓ ALL BULLISH ALIGNED - price above all EMAs
|
||
Golden Cross: ✓ EMA 9 above EMA 50 - STRONG BULLISH
|
||
Death Cross: ✗ Not present
|
||
|
||
RSI (Relative Strength Index - 14 period):
|
||
Current RSI: 58 [Normal zone]
|
||
Zone: 30-70 [Healthy, neither overbought nor oversold]
|
||
Divergence: ✗ None detected
|
||
Strength: Strong uptrend (RSI in healthy zone, trending up)
|
||
|
||
MACD (Moving Average Convergence Divergence):
|
||
MACD Line: +8.32 [Positive] - ABOVE signal line
|
||
Signal Line: +6.15 [Value]
|
||
Histogram: +2.17 [Positive (Bullish)] [Expanding ↗]
|
||
Signal Strength: Strong ✓
|
||
Momentum Status: ACCELERATING - histogram growing
|
||
|
||
VWAP (Volume Weighted Average Price):
|
||
VWAP Level: $2,812.50
|
||
Position: Price +1.2% ABOVE VWAP ✓
|
||
Interpretation: Institutional buying accumulation ✓
|
||
Support/Resistance: VWAP acting as strong support
|
||
Signal: Price breaking above VWAP with volume = VERY BULLISH
|
||
|
||
Indicator Confluence:
|
||
EMAs: ✓ Bullish alignment (all 4 EMAs pointing up)
|
||
RSI + MACD: ✓ Both confirm bullish (RSI healthy, MACD expanding)
|
||
VWAP + Price: ✓ Price above VWAP with institutional backing
|
||
Overall Strength: ✓✓✓ VERY STRONG (5/5 indicators align bullish)
|
||
|
||
MULTI-TIMEFRAME ANALYSIS
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Daily (1d): Bullish - Higher highs, higher lows
|
||
4-Hour (4h): Bullish - Ascending triangle forming
|
||
1-Hour (1h): Bullish - Momentum continuation
|
||
Confluence: 3/3 timeframes bullish = STRONG SIGNAL ✓✓✓
|
||
|
||
KEY OBSERVATIONS
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
• Ascending triangle nearly complete after 3-day formation
|
||
• Volume increasing on up moves confirms buyer strength
|
||
• Support at $2,750 held 5 times in past week - very strong
|
||
• Current consolidation near breakout point suggests imminent move
|
||
• Price approaching upper boundary of triangle with high volume
|
||
|
||
TECHNICAL OUTLOOK
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Short-term (1-4h): Bullish - Watch for triangle breakout
|
||
Medium-term (1-3d): Bullish - Trend should continue
|
||
Key Events:
|
||
✓ Watch: $2,880 resistance breakout for triangle confirmation
|
||
✓ If $2,750 breaks: First target $2,650 (previous low)
|
||
✓ If $2,880 breaks: First target $2,950, then $3,050
|
||
|
||
RISK/REWARD ASSESSMENT
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
If Bullish Breakout:
|
||
Entry: $2,880+ (triangle break)
|
||
Target: $2,950-$3,050 (+3-7%)
|
||
Risk: $2,750 (-4%)
|
||
R/R Ratio: 1:1.7 (favorable)
|
||
|
||
If Bearish Breakdown:
|
||
Entry: $2,750 (support break)
|
||
Target: $2,650-$2,500 (-6 to -12%)
|
||
Risk: $2,880 (+4%)
|
||
R/R Ratio: 1:1.5 (less favorable)
|
||
|
||
LIMITATIONS & CONTEXT
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
• This is probability-based analysis, not a guarantee
|
||
• ETH/USDC is fairly liquid, but patterns may break unexpectedly
|
||
• Whale movements can invalidate technical patterns
|
||
• Always use stop losses on actual trades
|
||
• Combine with fundamental analysis and market sentiment
|
||
|
||
Data from: DexPaprika | 56 candles analyzed | 2025-10-31
|
||
```
|
||
|
||
### Scenario 2: Bearish Pattern Warning
|
||
User: "What does the chart look like for this new Base token?"
|
||
|
||
Response:
|
||
```
|
||
[TECHNICAL ANALYSIS: NewToken/USDC on Base]
|
||
|
||
CURRENT PRICE STRUCTURE
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Current Price: $0.00245
|
||
24h High: $0.00892
|
||
24h Low: $0.00089
|
||
Range: $0.00803 (+900% volatility - EXTREME)
|
||
|
||
TREND ANALYSIS
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Overall Trend: BEARISH
|
||
Trend Strength: STRONG
|
||
Lower Highs: ✓ Yes (each bounce is lower)
|
||
Lower Lows: ✓ Yes (each drop is lower)
|
||
Last 24h Movement: -73% (bearish)
|
||
|
||
PATTERN RECOGNITION
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Active Pattern: Head & Shoulders (Distribution)
|
||
Pattern Stage: 70% Complete
|
||
Significance: Bearish Reversal - Strong downside signal
|
||
Reliability: 79% confidence
|
||
Target: $0.00045 (-82%)
|
||
|
||
KEY OBSERVATIONS
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
🔴 CRITICAL OBSERVATIONS:
|
||
• Extreme volatility (900%) indicates speculation/manipulation
|
||
• Clear downtrend with lower highs every bounce
|
||
• Volume declining on up moves, increasing on down moves
|
||
• Head & Shoulders pattern confirms bearish momentum
|
||
• Only 24 hours of price history - very unreliable
|
||
|
||
TECHNICAL OUTLOOK
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Short-term (1-4h): Bearish
|
||
Medium-term (1-3d): Caution - Highly volatile
|
||
Key Events:
|
||
⚠️ Support $0.00150 may break soon
|
||
⚠️ High-risk environment - avoid without major liquidity
|
||
⚠️ Very new token - patterns not reliable
|
||
|
||
LIMITATIONS & CONTEXT
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
🔴 WARNING: This token is extremely new and volatile
|
||
• Only 24 hours of data - insufficient for reliable analysis
|
||
• Extreme volatility ($0.00089 to $0.00892) suggests:
|
||
- Pump & dump activity
|
||
- Low liquidity moves
|
||
- Potential scam indicators
|
||
• Chart patterns unreliable this early in token lifecycle
|
||
• This volatility pattern matches pump-and-dump profiles
|
||
|
||
RECOMMENDATION
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Consider running security analysis on this token address
|
||
(Use Token Security Analyzer for honeypot/scam detection)
|
||
```
|
||
|
||
### Scenario 3: Indicator Divergence Warning
|
||
User: "The price went up but something feels off..."
|
||
|
||
Response:
|
||
```
|
||
[TECHNICAL ANALYSIS: Token/USDC - Divergence Warning]
|
||
|
||
TREND ANALYSIS
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Overall Trend: BULLISH (on surface)
|
||
Price Action: ↗ Making higher highs (+2.3% today)
|
||
Last Movement: Up $1,200 in 4 hours
|
||
|
||
TECHNICAL INDICATORS
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Moving Averages:
|
||
EMA 9: $45,800 [Price +2.6% above]
|
||
EMA 21: $45,200 [Price +3.2% above]
|
||
Status: ✓ Bullish (price above both)
|
||
|
||
RSI (Relative Strength Index):
|
||
Current RSI: 82 [OVERBOUGHT]
|
||
Zone: Above 70 [OVERBOUGHT ZONE]
|
||
Price Action: ✓ Making HIGHER HIGH ($46,500)
|
||
RSI Action: ✗ Making LOWER HIGH (RSI was 86, now 82)
|
||
⚠️ BEARISH DIVERGENCE DETECTED: Price higher, RSI lower = reversal warning
|
||
|
||
MACD:
|
||
MACD Line: [Positive but weakening]
|
||
Histogram: [Shrinking ↙] - Momentum loss
|
||
Status: ⚠️ Momentum decelerating despite price rise
|
||
|
||
VWAP:
|
||
VWAP Level: $45,500
|
||
Position: Price only +2.2% above VWAP
|
||
Volume: ↙ Decreasing on the rally
|
||
Status: ⚠️ Weak breakout (volume not confirming)
|
||
|
||
Indicator Confluence:
|
||
EMAs: ✓ Bullish
|
||
RSI + Divergence: ✗ BEARISH DIVERGENCE (major warning)
|
||
MACD: ⚠️ Weakening momentum
|
||
Volume: ✗ Declining on rally
|
||
Overall Strength: ⚠️⚠️ WEAK - Only 1/4 indicators confirming, multiple warnings
|
||
|
||
KEY OBSERVATIONS
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
🔴 RED FLAG: Price making higher high but RSI making lower high
|
||
This is classic bearish divergence = likely reversal coming
|
||
|
||
⚠️ Momentum is decelerating (MACD histogram shrinking)
|
||
Price is rising on declining volume = weakness
|
||
|
||
⚠️ RSI overbought at 82 = pullback very likely
|
||
Expect reversal to $45,200 (previous EMA) or deeper
|
||
|
||
TECHNICAL OUTLOOK
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
Short-term (1-4h): ⚠️ CAUTION - Bearish divergence suggests pullback
|
||
Medium-term (1-3d): Depends on next move - wait for confirmation
|
||
|
||
Key Events:
|
||
⚠️ WATCH: If price breaks below $45,200 → pullback confirmed
|
||
⚠️ WATCH: RSI needs to cool below 70 to remove overbought
|
||
✓ Support: $45,200 (EMA 21) is first major support
|
||
✓ Support: $45,000 (previous resistance)
|
||
|
||
RECOMMENDATION
|
||
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
|
||
⚠️ WAIT FOR CONFIRMATION before trading
|
||
Bearish divergence suggests pullback likely
|
||
The overbought RSI + declining volume + MACD weakness = high probability reversal
|
||
Better to wait for price to break below $45,200 before shorting
|
||
Or wait for RSI to cool below 70 before buying more
|
||
```
|
||
|
||
## Success Criteria
|
||
|
||
A successful skill invocation:
|
||
1. Fetches adequate OHLCV data (20+ candles)
|
||
2. Identifies all relevant support/resistance levels
|
||
3. Recognizes candlestick patterns accurately
|
||
4. Detects larger chart patterns (triangles, H&S, etc.)
|
||
5. Analyzes volume confirmation
|
||
6. Provides multi-timeframe perspective
|
||
7. Calculates risk/reward ratios
|
||
8. Never gives investment advice
|
||
9. Warns about low-confidence situations
|
||
10. Provides actionable observations with specific levels
|