TradingView Agent Output and Signal Interpretation Guide

1. Signal Strength and Confidence Level

Signal Strength (1-10)

Indicates the overall strength of the trading signal.

• 1-3: Weak signal, exercise caution

• 4-6: Moderate signal, worth considering

• 7-10: Strong signal, high potential

Confidence Level (1-10)

Represents the agent's certainty in its analysis.

• 1-3: Low confidence, additional confirmation recommended

• 4-6: Moderate confidence, consider other factors

• 7-10: High confidence, more reliable analysis

Explanation

Provides context for the ratings. Always read this to understand the reasoning behind the scores.

2. Multiple Confirmation Signals

• Look for at least three independent confirmation signals.

• Signals should come from different types of indicators or analysis methods.

• The explanation helps understand why these specific confirmations are important.

• More confirmations generally indicate a more reliable signal.

3. Primary Trade Setup

• Direction: Indicates whether to buy (Long) or sell (Short).

• Entry Zone:

• Optimal Entry: The ideal price to enter the trade.

• Valid Entry Range: A wider range where entry is still considered favorable.

• Entry Trigger Conditions: Specific conditions that must be met before entering the trade. All conditions should be satisfied.

• Stop-Loss:

• Initial Stop: The price at which to exit if the trade moves against you.

• Trailing Stop: A method to potentially lock in profits as the trade moves in your favor.

• Take-Profit Targets: Multiple exit points to secure profits gradually.

• Risk-Reward Ratio: Compares potential profit to potential loss. Generally, look for ratios of at least 1:2 or better.

• Setup Rating: Overall quality of the trade setup. Higher ratings indicate higher probability setups.

• Probability Explanation: Provides context for the setup rating.

4. Pullback Entry Strategy

• Describes how to enter on a price pullback for a potentially better entry price.

• Pay attention to specific conditions that define a valid pullback.

• Understand the benefits and potential risks of waiting for a pullback.

5. Entry Quality Score

• Overall score (0-100) provides a quick assessment of entry quality.

• Breakdown helps identify strengths and weaknesses of the entry.

• Scores below 15 in any category may indicate potential weaknesses.

• Ideal entries should have high scores across all categories.

6. Potential Scenarios

• Scenario 1: The primary expectation for the trade.

• Scenario 2: An alternative outcome and how to adapt your strategy.

• Scenario 3: Conditions that would invalidate the trade idea, signaling when to exit.

7. Chart Pattern Analysis

• Provides additional context based on technical chart patterns.

• Use to confirm or adjust your trade setup.

• Consider the reliability assessment for each pattern.

Best Practices for Using the TradingView Agent Output

• Always start by assessing the Signal Strength and Confidence Level.

• Ensure all Entry Trigger Conditions are met before entering a trade.

• Use the Entry Quality Score as a quick filter. Be cautious with scores below 70.

• Always implement the provided stop-loss and consider using the take-profit levels.

• Be prepared to adjust your trade based on the alternative scenarios.

• When possible, use the Pullback Entry Strategy to optimize your entry point.

• Use the Chart Pattern Analysis as additional confirmation for your setup.

• Remember that no signal is guaranteed. Always manage your risk and use proper position sizing.