EMA, RSI, MACD and Bollinger Bands

EMA and warm-up

An exponential moving average weights recent closes more heavily. LEGION seeds an EMA with the simple average of its initial period, then updates recursively. EMA20, EMA50 and EMA200 require sufficient completed closes. Missing warm-up values are unavailable rather than zero. Being above an EMA describes a relationship, not a recommendation.

RSI and MACD

RSI14 compares smoothed gains and losses on a bounded zero-to-100 scale. A high RSI may persist during a trend; it does not compel a reversal. MACD subtracts EMA26 from EMA12 and uses a nine-period signal EMA. The histogram is their difference. Both depend on the history supplied, so different start points may change early results.

Bollinger Bands

LEGION uses a 20-close simple mean and two population standard deviations on either side. The bands describe dispersion in the supplied sample. They are not a confidence interval guaranteeing the next close. Indicators derived from the same closes are correlated information, not independent confirmations.

Practice exercise

Enable every indicator, compare its warm-up against chart length, and note the exact EMA periods, RSI period and Bollinger calculation in your journal.

Open trading terminal (requires a customer account). Compare illustrative indicators.