On the price chart or in its own pane

One setting decides where an indicator draws:

overlay = True

On top of the price candles. Use it when the values are prices: moving averages, Bollinger Bands, VWAP, a Donchian channel.

overlay = False

In its own pane under the price chart. Use it when the values are on a different scale: RSI (0 to 100), MACD, a funding rate in percent, a probability.

class DonchianMidline(Indicator):
    overlay = True          # prices: same pane as the candles

class UpDownRatio(Indicator):
    overlay = False         # 0 to 100: its own pane
    levels = [Level(70, "High"), Level(30, "Low")]

A simple test: if a value of the indicator could be confused with a price of the asset, it belongs on the price chart. Otherwise give it its own pane.

describe() includes "overlay", so any chart that reads it places the indicator correctly. LumiBot’s own backtest charts are separate; see Using an indicator in a backtest.