Specification

Essential Components for Indicator Specification
  • Objective & Overview: Briefly describe what the indicator calculates (e.g., trend, momentum, volatility) and its main purpose.
  • Input Parameters (Variables): List all user-definable inputs (e.g., Moving Average periods, ATR multiplier) to avoid hardcoding values.
  • Detailed Logic/Calculation Rules:
    • Explain the formula or logic to calculate indicator values.
    • Define conditions for visual signals (e.g., "draw a green arrow on the chart when the fast EMA crosses above the slow EMA").
  • Visual Elements:
    • Specify drawing styles: lines, arrows, histogram, color changes, or objects.
    • Define what happens when conditions are met (e.g., color changes, object creation).
  • Alerts & Notifications:
    • Specify the trigger point: at the close of the bar or immediately upon price action.
    • List notification types: pop-up alert, email, push notification to mobile.
  • Timeframe & Asset Sensitivity: State if the indicator is for specific timeframes or instruments (e.g., "must work on all pairs and timeframes").
  • Example Screenshots: Include mockups of how the indicator should look on the chart. 
Best Practices for Specification Writing
  • Be Specific: Instead of "when price is high," use "when price is above the top Bollinger Band (
    )".
  • Be Logical & Structured: Break down the algorithm into steps (e.g., 1. Calculate RSI, 2. Check if RSI < 30).
  • Define Terminology: Clearly define all unique terms to ensure the developer understands the exact requirements.
  • Test Cases: Include examples of inputs and expected outputs to verify the indicator's accuracy. 

Files:

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