generating-trading-signals

# Generating Trading Signals

## Overview

Multi-indicator signal generation system that analyzes price action using 7 technical indicators and produces composite BUY/SELL signals with confidence scores and risk management levels.

**Indicators**: RSI, MACD, Bollinger Bands, Trend (SMA 20/50/200), Volume, Stochastic Oscillator, ADX.

## Prerequisites

Install required dependencies:

```bash
set -euo pipefail
pip install yfinance pandas numpy
```

Optional for visualization: `pip install matplotlib`

## Instructions

1. **Quick signal scan** across multiple assets:
   ```bash
   python ${CLAUDE_SKILL_DIR}/scripts/scanner.py --watchlist crypto_top10 --period 6m
   ```
   Output shows signal type (STRONG_BUY/BUY/NEUTRAL/SELL/STRONG_SELL) and confidence per asset.

2. **Detailed signal analysis** for a specific symbol:
   ```bash
   python ${CLAUDE_SKILL_DIR}/scripts/scanner.py --symbols BTC-USD --detail
   ```
   Shows each indicator's individual signal, value, and reasoning.

3. **Filter and rank** the best opportunities:
   ```bash
   # Only buy signals with 70%+ confidence
   python ${CLAUDE_SKILL_DIR}/scripts/scanner.py --filter buy --min-confidence 70 --rank confidence

   # Save results to JSON
   python ${CLAUDE_SKILL_DIR}/scripts/scanner.py --output signals.json
   ```

4. **Use predefined watchlists**:
   ```bash
   python ${CLAUDE_SKILL_DIR}/scripts/scanner.py --list-watchlists
   python ${CLAUDE_SKILL_DIR}/scripts/scanner.py --watchlist crypto_defi
   ```
   Available: `crypto_top10`, `crypto_defi`, `crypto_layer2`, `stocks_tech`, `etfs_major`

## Output

The scanner produces a summary table with symbol, signal type, confidence %, price, and stop loss for each asset scanned. Detailed mode adds per-indicator breakdowns with risk management levels (stop loss, take profit, risk/reward ratio).

**Signal types**: STRONG_BUY (+2), BUY (+1), NEUTRAL (0), SELL (-1), STRONG_SELL (-2)

**Confidence ranges**: 70-100% high conviction | 50-70% moderate | 30-50% weak | 0-30% avoid

See `${CLAUDE_SKILL_DIR}/references/implementation.md` for full output format examples and signal type tables.

## Error Handling

| Error | Cause | Fix |
|-------|-------|-----|
| No data for symbol | Invalid ticker or delisted | Verify symbol exists on Yahoo Finance |
| Insufficient data | Period too short for indicators | Use `--period 6m` minimum |
| Rate limit exceeded | Too many rapid API calls | Add delay between scans |

See `${CLAUDE_SKILL_DIR}/references/errors.md` for comprehensive error handling.

## Examples

**Morning crypto scan** - Check all top-10 crypto assets for entry opportunities:
```bash
python ${CLAUDE_SKILL_DIR}/scripts/scanner.py --watchlist crypto_top10 --period 6m
```

**Deep dive on Bitcoin** - Full indicator breakdown with risk management levels:
```bash
python ${CLAUDE_SKILL_DIR}/scripts/scanner.py --symbols BTC-USD --detail
```

**Find strongest DeFi buy signals** - Filter and rank by confidence:
```bash
python ${CLAUDE_SKILL_DIR}/scripts/scanner.py --watchlist crypto_defi --filter buy --rank confidence
```

**Export results** - Save to JSON for automated pipeline or further analysis:
```bash
python ${CLAUDE_SKILL_DIR}/scripts/scanner.py --watchlist crypto_top10 --output signals.json
```

## Resources

- **yfinance** for price data
- **pandas/numpy** for calculations
- Compatible with trading-strategy-backtester plugin
- `${CLAUDE_SKILL_DIR}/references/implementation.md` - Output formats, configuration, backtester integration, file reference