> For the complete documentation index, see [llms.txt](https://docs.deryve.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.deryve.xyz/ai-agent/agent-market-analysis.md).

# Agent market analysis

Every enabled Deryve agent performs continuous market analysis. This analysis informs autonomous entries, position management, and exits.

### Analysis cycle

1. An enabled agent collects fresh market data.
2. It computes technical indicators and key levels.
3. It classifies market conditions and creates a structured decision.
4. The risk engine approves, adjusts, or blocks the action.

### What it evaluates

The analyst processes hourly candles and computes RSI, MACD, Bollinger Bands, ATR, momentum, and swing levels. It returns a directional bias and an action: `long`, `short`, or `wait`.

A tradable setup requires indicator confluence and a minimum 1.5:1 risk-reward ratio. If evidence conflicts, the agent returns `wait`.

### Read the output

* **Trend:** current price structure and direction.
* **Indicators:** labeled momentum and volatility readings.
* **Key levels:** detected support and resistance.
* **Setup:** entry, stop, take profit, and risk-reward when eligible.
* **Invalidation:** the condition that breaks the thesis.

Use the output to understand why an agent entered, managed, or avoided a trade.


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# Agent Instructions
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