What is a market signal?
A defined observation from market data that may support an interpretation — not a recommendation.
What is a market signal?
A market signal is a defined observation derived from market data that may support an interpretation about trend, momentum, participation, volatility, sentiment, or positioning. Examples include price crossing above a moving average, RSI reentering from oversold territory, a resistance breakout, or a sudden rise in open interest.
| Concept | Explanation | |---|---| | Data | Raw observations such as price, volume, volatility, breadth, funding, or on-chain flows. | | Indicator | A calculated measure derived from data, such as RSI, MACD, ADX, ATR, or OBV. | | Condition | A rule applied to data or an indicator, such as crossing a threshold or forming a divergence. | | Signal | The condition interpreted as potentially meaningful evidence. | | Decision | A separate judgment that also considers objectives, valuation, risk, and position size. |
Key idea: A signal is not a recommendation. The same signal can be relevant to one strategy and irrelevant to another.