Lesson 6 of 6 · 8 min

How the portal calculates its analyses

Lesson goalAfter this lesson you can check every portal analysis yourself: regime, direction, levels and scenarios, and you know where its limits are.

The Analyses are generated automatically, without a human author, using the same procedure for all five coins. This is deliberate. Every number can be checked, and nobody picks the story after the fact. The analysis is public, the same for everyone, and not a personal recommendation.

Input data

The indicators are calculated from 200 closed hourly candles of the pair against USDT on the OKX exchange. The current price comes separately, so it can move between closes.

Regime: trend or sideways

The regime is Trend if both conditions are met: ADX(14) is at least 20 and the gap between EMA20 and EMA50 is at least 1.5%. The gap is |EMA20 − EMA50| / EMA50 × 100. Otherwise the regime is Sideways. Direction is shown separately: up if EMA20 is equal to or above EMA50, otherwise down. So there can also be Sideways with direction up, which only means that EMA20 is above EMA50 but the two conditions for a trend are not both met.

Levels and scenarios

The upper level is the highest high, and the lower level the lowest low, of the 48 closed hourly candles before the last closed one. The last candle is deliberately not in that window, because its close is being compared with the levels. Two scenarios follow from them:

Scenario A, continued rise: it is confirmed by an hourly close above the upper level and invalidated by a fall below the lower one.
Scenario B, pullback: it is confirmed by an hourly close below the lower level and invalidated by a rise above the upper one. On the spot market this means waiting or closing an existing position, because without leverage there is no short selling.

From analysis to demo order

What the analysis does not know

It does not look at news, the calendar or volume.
It works only on the hourly timeframe and does not look at the bigger picture on the daily chart.
It does not use RSI or ATR in the regime decision, even though it displays them.
It knows nothing about your account, your costs or the time you have.

An open formula does not mean a winning formula. Its value lies in the fact that you can check it, compare it with your own reading and learn the procedure. A result on the demo does not guarantee a result on the real market, where fear, execution and taxes also come into play.

Remember

Trend requires ADX(14) of at least 20 and an EMA20 and EMA50 gap of at least 1.5%; otherwise it is sideways.
The levels are the high and low of the 48 hourly candles before the last closed one and are recalculated every hour.
A scenario is confirmed by an hourly close beyond the level, which the page states explicitly, and invalidated by crossing the opposite level.
The analysis is a measurable description of the state, not a recommendation or a prediction.