## Appendix B Market Behaviors and Technical Indicators Computation  
Technical indicators are used to detect or anticipate behaviors in a financial asset. Below is a non-exhaustive list of the behaviors that technical indicators try to capture:  
* Bullish: This term refers to a positive outlook on an asset or market, where traders or investors expect prices to rise. Bullish sentiment often leads to increased buying activity. Bullish signals in technical analysis include uptrends, bullish crossovers, and patterns that suggest continued upward momentum or a reversal from a previous downtrend.
* Bearish: This term describes a negative outlook on an asset or market, where traders or investors expect prices to fall. Bearish sentiment typically leads to increased selling activity. In technical analysis, bearish signals include downtrends, bearish crossovers, and patterns indicating a decline in momentum or the possibility of a trend reversal to the downside.
* Overbought Level: An overbought level occurs when a technical indicator suggests that an asset has experienced a prolonged upward price movement, pushing its value higher than what might be considered sustainable or justified by fundamentals. When an asset is overbought, it implies that buying pressure may be excessive, and a price correction or pullback could be imminent.
* Oversold Level: An oversold level indicates that an asset has experienced a significant and extended downward price movement, possibly pushing its price below its intrinsic value. When an asset is oversold, it may signal a buying opportunity, as the selling pressure could be overdone, leading to a potential price rebound.
* Crossover: A crossover occurs when one technical indicator crosses above or below another indicator or a specific level, triggering a potential buy or sell signal. Common examples include a moving-average crossover, where a short-term moving average crosses above (bullish signal) or below (bearish signal) a long-term moving average, or an oscillator like the Stochastic Oscillator crosses certain thresholds (e.g., 20 or 80).
* Divergence: Divergence happens when the price of an asset moves in the opposite direction of a technical indicator, suggesting a possible shift in the asset's momentum or trend. Bullish divergence occurs when the price makes lower lows, but the indicator makes higher lows, potentially signaling a reversal to the upside. Bearish divergence happens when the price makes higher highs, but the indicator makes lower highs, indicating a potential downward reversal.
* Momentum: Momentum measures the speed and strength of price movements in a given direction. A strong momentum suggests that an asset's price is likely to continue moving in the same direction, either up or down.
* Trend Confirmation: Trend confirmation refers to using additional technical indicators or signals to validate the existence and strength of a market trend, whether up or down. Confirming trends helps traders avoid false signals or premature entries. For example, a trend may be confirmed when both price and indicators like moving averages or momentum oscillators are aligned in the same direction.
* Trend Reversal: A trend reversal occurs when the direction of a prevailing market trend changes, either from an uptrend to a downtrend or vice versa. Reversals are identified by various technical patterns, such as head and shoulders, or through divergence between price and momentum indicators. Recognizing trend reversals is crucial for traders looking to capitalize on the shift in market direction.