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.
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