A flowchart-like model of decisions and outcomes. In trading automation, a decision tree breaks strategy logic into sequential conditional steps (e.g. “if RSI > 70 then sell, else if RSI < 30 then buy”). Each branch represents a decision point, and the tree’s leaves indicate trade actions. A decision tree provides a clear, rule-based way to represent trading logic or strategy conditions, modeling the possible outcomes and actions. It helps traders visualize how input data (price, indicators) leads to trade decisions.

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