Ritchi Indicator

The Ritchi Indicator is Ritdex's built-in BUY/SELL signal overlay on the chart. Learn how the signals are computed (Kalman trend + ATR bands + volume confirmation, no repaint) and how to read and trade them.

The Ritchi Indicator is Ritdex's built-in BUY / SELL signal overlay, drawn directly on the trading chart. It marks momentum entries in real time so you can trade by the signal — either manually, or automatically with the AI Auto-Trading bot.

Ritdex computes it server-side from live Hyperliquid candles, so what you see on the chart is exactly what the system acts on — the manual chart, the bot, and the signal are always the same, with no hidden divergence.

Where to find it

• On every perp chart at ritdex.com — the BUY/SELL arrows and the live PnL: pill are always on, no setup needed.
• As a standalone chart at tradingview.ritdex.com for traders who prefer a full-screen view.

Reading the signals

• Green up-arrow (BUY) below a candle → the trend has turned bullish with volume confirmation. A signal to go Long.
• Red down-arrow (SELL) above a candle → the trend has turned bearish. A signal to go Short (or exit a long).
• The arrow prints at the candle's close — that closing price is your entry reference.
• The PnL: pill on the right edge sits on the current-price line and shows the running profit/loss of the most recent signal (BUY = long, SELL = short), updating once per closed candle.

How the signal is computed (the algorithm)

Ritchi is a Volume-Trend model. On every closed candle:

1. Kalman-filtered trend line. A Kalman filter smooths the closing price into a low-noise trend estimate — more responsive than a moving average and self-adapting to volatility.
2. Volatility bands. ATR(200) (Wilder) times a 2.0 multiplier draws an upper and lower band around the Kalman line.
3. Trend state machine (breakout). The trend flips up when a close crosses above the upper band, and down when it crosses below the lower band — then holds until the opposite cross, so small wiggles inside the bands never flip the signal.
4. Volume-delta confirmation. Volume is signed by candle direction (green = +volume, red = −volume) and normalised against the largest absolute delta over the last 100 candles. A BUY requires delta ≥ +0.3, a SELL requires ≤ −0.3 — trend flips without volume conviction are rejected.
5. Pending carry. If the trend flips before volume confirms, the signal is held pending and fires the moment volume confirms on a later candle — a strong move isn't missed just because volume lagged the price break by a bar.
6. No repaint — closed candles only. The arrow prints at candle close, which is exactly when the signal is confirmed. What you saw is final.

Trading with the Ritchi Indicator

• Pick a timeframe. Higher timeframes (15m–1h) give fewer, steadier signals; lower ones (1m–5m) give more frequent entries with more noise.
• Trade it manually. Enter on the arrow at candle close and manage the position with your own stop and target. Ritchi itself has no fixed take-profit — it stays in the direction of the trend and gives the opposite arrow when momentum turns, which is your natural exit / reversal point.
• Or automate it. The AI Auto-Trading bot executes these exact signals for you 24/7 — entering ~1–2s after each signal candle closes, with a native stop and close-then-reverse on a flip.