📈 Education & Technicals
What Are Buy & Sell Signals in TopWorth Indicator?
Published by The Top Worth Team
The most prominent feature of the TopWorth Indicator is its clear, labeled **BUY** and **SELL** signals. But what do they actually mean, and how are they generated? Understanding the logic behind them is key to using the tool effectively.
The Goal: Identifying High-Probability Turning Points
The signals are designed to appear at points where the market has a high statistical probability of reversing or starting a new trend. They are not random; they are the result of a specific set of conditions being met within the indicator's core algorithm.
How Are They Calculated?
The signals are a product of confluence between two main components:
- Trend Analysis: The indicator uses a sophisticated, modified version of a Supertrend calculation to determine the underlying trend direction. It analyzes price action and volatility to decide if the market is in a bullish or bearish state.
- Momentum Confirmation: A change in trend is not enough. The signal also requires confirmation from a momentum component, which uses Exponential Moving Averages (EMAs). A BUY signal will only appear if the trend turns bullish AND short-term momentum confirms this shift.
A signal is only printed on the chart when both of these conditions align perfectly. This confluence is what makes the signals more reliable than a simple moving average crossover or a basic trend indicator.
The Golden Rule: 100% Non-Repainting
This is the most important feature of the signals. Many free indicators will show you a signal, but if the trade goes wrong, the signal will vanish from your chart. This is called "repainting," and it makes an indicator look perfect in the past but useless in live trading. TopWorth signals are **100% non-repainting**. Once a candle closes and a signal is printed, it is permanent. It will never move or be removed. This ensures what you see is what you get, allowing for honest backtesting and building real trust in the system.