Distinguish a calculated measure from a condition triggered by it — and both from external events.
| Concept | Explanation | |---|---| | Indicator | A continuously updated measurement. Example: RSI currently equals 68. | | Signal | A condition derived from an indicator or price structure. Example: RSI crosses below 70 after being overbought. | | Event | A market or external occurrence. Example: earnings release, token unlock, or regulatory announcement. | | Pattern | A recognizable arrangement of price or candles. Example: ascending triangle. | | Context | The environment in which the signal occurs: trend, liquidity, volatility, valuation, sentiment, and timeframe. |
An event can cause a signal, but the two are not the same. A positive earnings surprise may trigger a gap breakout and volume spike; the event is fundamental, while the gap and volume conditions are market signals.