How Ryujin Works
A complete guide to the analysis methods, indicators, and signal scoring that power your trading insights.
The Analysis Pipeline
Every analysis in Ryujin follows a four-stage pipeline. Raw market data (OHLCV candles) flows through technical indicator calculations, then an AI model analyzes the indicators, and finally a multi-factor confidence scorer generates a weighted trading signal.
Technical Indicators
Indicators transform raw price data into actionable signals. Ryujin calculates four core indicators in real-time, each revealing a different dimension of market behavior.
Exponential Moving Average (EMA) gives more weight to recent prices using a multiplier of 2 / (period + 1). Ryujin uses EMA-9 (fast) and EMA-21 (slow).
The first EMA value is seeded with a Simple Moving Average (SMA) of the first N closes. After that, each new EMA builds on the previous one: EMA = (close - prevEMA) × k + prevEMA
When EMA-9 crosses above EMA-21 (“golden cross”), it signals a potential uptrend. The reverse (“death cross”) signals a potential downtrend.
Relative Strength Index (RSI) measures the speed and magnitude of price changes on a scale of 0-100. Ryujin uses the standard 14-period RSI with Wilder's smoothing method.
The formula: RSI = 100 - (100 / (1 + RS)) where RS = average gain / average loss over the period.
RSI < 30 = oversold (bullish signal). RSI > 70 = overbought (bearish signal). Ryujin scores extreme readings (<20 or >80) even more heavily.
MACD shows the relationship between two EMAs. Ryujin computes it with the standard parameters: fast=12, slow=26, signal=9.
MACD Line = EMA(12) - EMA(26)Signal Line = EMA(MACD, 9)Histogram = MACD - Signal
A positive histogram means bullish momentum (MACD above signal). The larger the histogram, the stronger the momentum. Ryujin needs at least 34 candles to compute MACD (26 for the slow EMA + 9 for the signal - 1).
Bollinger Bands show volatility by drawing bands around a moving average. Ryujin uses a 20-period SMA with 2 standard deviations.
Middle = SMA(20)Upper = Middle + 2 × StdDevLower = Middle - 2 × StdDev
When price touches the lower band, it's a bullish signal (potential bounce). When it touches the upper band, it's bearish. Bandwidth (upper-lower)/middle measures overall volatility — a squeeze often precedes a breakout.
Signal Scoring
Each indicator produces a score from -100 (extremely bearish) to +100 (extremely bullish). These are averaged into a single composite score that determines the final trading direction.
Bullish consensus across indicators. Confidence and strength scale with the composite magnitude.
No clear consensus. Indicators are mixed or neutral — wait for stronger alignment.
Bearish consensus. The more negative the composite, the higher the confidence in the sell signal.
Signal Strength Tiers
AI-Powered Analysis
After computing indicators and scoring the signal, Ryujin sends all the data to an AI model (Grok via OpenRouter) for a natural-language analysis. The AI provides context that pure math can't capture.
What the AI receives
- •Current price, 24h change, volume
- •All indicator values (RSI, EMA, MACD, BB)
- •Per-indicator scores with reasoning
- •Composite signal direction and confidence
What the AI returns
- •Natural-language market summary
- •Bullish and bearish factors
- •Risk factors to watch
- •Per-indicator breakdown with star ratings
Ready to see it in action?
All indicators, signals, and AI analysis running live on real market data.