Learn Trading Indicators

Master the indicators that power the TrAIde AI Score

Indicators

📊 Relative Strength Index

Measures overbought/oversold conditions

📈 MACD

Detects momentum and trend changes

🧠 Kalman Filter

AI-powered noise reduction and smoothing

💧 Volume Analysis

Confirms trend strength and conviction

💰 Bid-Ask Spread

Measures market liquidity and volatility

Bid-Ask Spread: Market Liquidity Gauge

The spread between buy and sell prices reveals market depth and volatility.

What is Bid-Ask Spread?

**Bid Price**: What buyers are willing to pay right now **Ask Price**: What sellers are willing to accept right now **Spread**: The difference between them (as a % of mid-price)

Example: BTC at bid $45,000 / ask $45,010 - Spread = $10 / $45,005 = 0.022%

Liquidity Interpretation

# 🟢 Deep/Safe (Spread < 0.1%)

Tight spread = many buyers and sellers

Easy to enter/exit large positions

Market is liquid and healthy

Slippage minimal

# 🔴 Thin/Volatile (Spread > 0.5%)

Wide spread = few market participants

Hard to exit without moving the price

Market is illiquid, fragile

High slippage risk

Trading Implications

A TrAIde score of +70 on an overbought asset is fine **if the spread is tight** (you can exit easily).

But +70 on an illiquid altcoin with 2% spread? **That's a trap.** You might be unable to sell at that price when you need to.

TrAIde's Use of Spread Data

- **Liquidity Status** shown on analysis pages - Used to **validate volume signals** - Helps detect "hollow moves" (price up, liquidity down = likely false breakout)

Pro Tip

Always check the spread before entering a position, especially on lower-volume assets. A great signal on a thin market is a liability.

Risk Warning