Technical Agent
Status: Verified against code Last Updated: 2026-04-13
Role in Plain English
The Technical Agent is your chart analyst. It looks at price action, patterns, and indicators to answer one question:
"Based on the chart, should we go LONG, SHORT, or stay NEUTRAL?"
What It Analyzes
1. Multi-Timeframe Confluence
The agent analyzes alignment across multiple timeframes:
- Identifies when all timeframes agree (high confluence)
- Flags when timeframes conflict (mixed signals)
Critical Terminology (Added 2026-02-03):
| Term | Meaning | NOT This |
|---|---|---|
| "DAILY trend" | Trend visible on the DAILY CHART (each bar = 1 day) | What the stock did today |
| "WEEKLY trend" | Trend visible on the WEEKLY CHART (each bar = 1 week) | This week's move |
| "INTRADAY" | Today's action on 1h/15m/5m charts | Multi-day trends |
Data Context by Trade Style:
| Style | What the Agent Sees | Implications |
|---|---|---|
| SCALP | 5m/15m bars only | No daily/weekly context — focus on immediate structure |
| DAY | Up to 5 daily bars | Daily levels are MULTI-DAY context, not same-session targets |
| SWING | 30 daily + 12 weekly bars | Use for position sizing and larger support/resistance |
| INVESTMENT | 26 weekly bars | Long-term trend only |
MTF Data Headers Include Date Ranges:
The agent receives explicit date ranges to understand the time span:
=== DAILY CHART (5 bars, Jan 28 - Feb 03) ===
This clarifies that "daily" means multi-day historical data, not today's action.
Session Context (Added 2026-02-03):
The Technical Agent now receives market session context to correctly interpret price bars:
=== MARKET SESSION CONTEXT ===
CURRENT TIME: 05:30 PM ET (Monday, Feb 03, 2026)
SESSION: AFTER_HOURS
NOTE: After-hours trading session.
CRITICAL - INTERPRETING PRICE BARS:
- Regular session: 9:30 AM - 4:00 PM ET
- Pre-market: 4:00 AM - 9:30 AM ET
- After-hours: 4:00 PM - 8:00 PM ET
- If AFTER_HOURS or PRE_MARKET: recent spikes may be extended hours reactions, NOT regular session breakouts
This prevents misinterpreting after-hours earnings spikes as "morning breakouts."
2. Support & Resistance Levels
The agent identifies price levels where the stock has previously:
- Bounced (support) — buyers stepped in
- Rejected (resistance) — sellers took control
Mike's 7-Timeframe Framework:
| Timeframe | Minor Levels | Major Levels |
|---|---|---|
| 1-Min | Last 30-60 min swings | Opening Range, PDC, PDH/PDL |
| 3-Min | Last 1-2 hour swings | Opening Range, PDC, PDH/PDL |
| 5-Min | Last 2-3 hour swings | Opening Range, PDC, PDH/PDL |
| 15-Min | Last 2-3 day swings | Weekly H/L + Opening Range, PDC |
| 1-Hour | Last 2-3 week swings | Monthly H/L |
| Daily | Last 2-4 week swings | 52-week H/L |
| Weekly | Last 1-3 month swings | ATH/ATL |
Key Reference Points (Always Checked):
- Opening Range (first 15 minutes high/low)
- PDC (Previous Day's Close)
- PDH/PDL (Previous Day's High/Low)
- Weekly/Monthly/Quarterly H/L
- 52-Week H/L
- All-Time H/L
Mike’s Entry Strategy (how the agent thinks):
- Buy at support (not at the break of resistance)
- After a breakout, prefer a pullback to support for entry
- Identify 2–4 minor levels and 2–3 major levels
3. Chart Patterns
Bullish (suggests LONG):
- Hammer candles / bullish engulfing
- Double bottom
- Bull flag
- Ascending triangle
- Inverse head and shoulders
Bearish (suggests SHORT):
- Topping tail candles / bearish engulfing
- Double top
- Bear flag
- Descending triangle
- Head and shoulders
4. SHORT-Specific Confirmation (CRITICAL)
When recommending a SHORT direction, the Technical Agent applies extra validation:
| Check | Requirement |
|---|---|
| Resistance holding | Must have multiple rejections, not just one touch |
| Pattern complete | Bearish pattern must BREAK below support, not just form |
| Confidence adjustment | If Macro shows risk_on, reduce confidence by 20% |
| Entry type vocabulary | Use "bounce_after_breakdown" or "resistance_rejection" (NOT "pullback_after_breakout") |
SHORT-specific confirmation rules:
- Verify resistance is holding (multiple rejections)
- Require the bearish pattern to be complete (break below support), not just forming
- If the pattern is not complete yet, reduce confidence
- If Macro is risk_on, reduce confidence by 20%
- Use SHORT-specific entry-type vocabulary
5. Volatility Regime (Mike's Definition)
| Condition | Definition |
|---|---|
| Volatile Day | Intraday range > 25% above 30-day ATR |
| Normal Day | Intraday range within 25% of ATR |
| Low Volatility | Intraday range below 30-day ATR |
Impact: Wider stops/targets for high volatility, tighter for low.
6. Volume Analysis (Mike's Rules)
| Condition | Definition |
|---|---|
| Volume Spike | Current bar > 25% above average |
| Strong Volume Day | Today's volume > 25% above 30-day average |
Impact: Price moves WITH volume = higher conviction.
7. Options Flow Analysis (If Available)
| Data Point | What It Tells Us |
|---|---|
| GEX (Gamma Exposure) | Magnetic price levels |
| Put/Call Ratio | <0.7 = bullish, >1.0 = bearish |
| Near-Money OI | Support/resistance from options positioning |
The Entry Philosophy
This is Mike's core methodology embedded in the agent:
"Buy at support, not the breakout."
The agent is trained to:
- Wait for pullback — Don't chase breakouts
- Enter at support — Let price come to you
- Full position at support — Commit with conviction, not scale in gradually
- Focus on risk first — "How much will I lose if wrong" before "How much will I make"
For LONGS:
- Enter on pullback AFTER breakout (not the breakout itself)
- Buy at SUPPORT levels (not break of resistance)
For SHORTS (Inverse Logic):
- Enter on bounce AFTER breakdown (not the breakdown itself)
- Short at RESISTANCE levels (not break of support)
- Wait for price to come UP to you at resistance
What It Outputs
The Technical Agent produces a structured verdict that includes:
Core Assessment
- Direction — Whether the chart suggests LONG, SHORT, or NEUTRAL
- Confidence Level — How strongly the data supports the direction (always provides an assessment when any data is available)
- Entry Type — The recommended way to enter (e.g., on a pullback, at support, on pattern completion)
Key Levels Identified
The agent identifies both support and resistance levels at multiple significance levels:
- Minor levels — Recent swing points with fewer touches
- Major levels — Key structural levels with multiple touches
- Reference points — Previous day's close/high/low, opening range, weekly/monthly levels
Supporting Analysis
- Chart patterns — Any bullish or bearish patterns identified
- Multi-timeframe alignment — Whether different timeframes agree or conflict
- Volatility assessment — Current market volatility regime
- Options flow — Institutional positioning sentiment (when available)
- Reasoning — Specific observations supporting the verdict
Asset-Specific Behavior
STOCKS
Full indicator suite available (RSI, SMA, EMA, MACD) + chart patterns + historical bars + VWAP from snapshot.
VWAP (Volume Weighted Average Price):
- Pulled from the snapshot data (intraday VWAP)
- Acts as dynamic intraday support/resistance
- Price above VWAP = bullish bias
- Price below VWAP = bearish bias
OPTIONS
- Analyzes the underlying stock first (full indicators + VWAP)
- Direction determines CALL vs PUT
- Also analyzes options chain: greeks, IV, OI
- Contract selection happens in Supervisor Agent
FUTURES
Focuses on:
- Price action from bars
- Support/resistance from swing highs/lows
- Volume patterns
- Session data (open, high, low, close, volume)
CRYPTO
Full indicator suite (RSI, SMA, EMA, MACD) + 24/7 volume patterns.
Note: ES futures correlation check happens in Wild Card Agent for crypto trades.
How Its Opinion Gets Used
The Technical Agent's verdict goes to the Supervisor Agent, which combines it with Macro and Wild Card verdicts.
Key rule: If Technical and Macro disagree, Technical wins because it has actual price data.
Implementation details are intentionally omitted from public documentation.