Signal Scoring System
Our scoring system converts technical analysis into actionable recommendations. Each indicator contributes to a bullish or bearish score.
How It Works
Indicators → Signals → Bullish Score ↘
→ Bearish Score → Net Score → Recommendation
- Each indicator generates a signal (bullish, bearish, or neutral)
- Each signal has a weight based on reliability
- Weights are summed into bullish and bearish scores
- Net Score = Bullish Score - Bearish Score
- Net Score maps to a recommendation
Score Weights
Trend Indicators
| Signal Type | Bullish Score | Bearish Score |
|---|---|---|
| Golden Cross | +2 | - |
| Death Cross | - | +2 |
| Price above both EMAs | +1 | - |
| Price below both EMAs | - | +1 |
| KST Bullish Cross | +2.5 | - |
| KST Bearish Cross | - | +2.5 |
| KST Above Zero | +1 | - |
| KST Below Zero | - | +1 |
| Supertrend Bullish Flip | +2.5 | - |
| Supertrend Bearish Flip | - | +2.5 |
| Supertrend Uptrend | +1 | - |
| Supertrend Downtrend | - | +1 |
| Ichimoku Strong Buy | +2.5 | - |
| Ichimoku Strong Sell | - | +2.5 |
| Ichimoku Above Cloud | +1.5 | - |
| Ichimoku Below Cloud | - | +1.5 |
| Aroon Bullish Cross | +2 | - |
| Aroon Bearish Cross | - | +2 |
| Aroon Strong Uptrend | +1.5 | - |
| Aroon Strong Downtrend | - | +1.5 |
Momentum Indicators
| Signal Type | Bullish Score | Bearish Score |
|---|---|---|
| RSI Oversold (below 30) | +2 | - |
| RSI Overbought (above 70) | - | +2 |
| RSI Bullish (50-70) | +0.5 | - |
| RSI Bearish (30-50) | - | +0.5 |
| MACD Bullish | +1 | - |
| MACD Bearish | - | +1 |
| Stochastic Oversold | +1.5 | - |
| Stochastic Overbought | - | +1.5 |
| Stochastic Bullish Cross | +2 | - |
| Stochastic Bearish Cross | - | +2 |
| CCI Extreme Oversold | +2 | - |
| CCI Extreme Overbought | - | +2 |
| CCI Zero Cross Up | +1 | - |
| CCI Zero Cross Down | - | +1 |
| Williams %R Bullish Cross | +1.5 | - |
| Williams %R Bearish Cross | - | +1.5 |
| Williams %R Oversold | +0.5 | - |
| Williams %R Overbought | - | +0.5 |
Volatility Indicators
| Signal Type | Bullish Score | Bearish Score |
|---|---|---|
| BBands Oversold | +1.5 | - |
| BBands Overbought | - | +1.5 |
Volume Indicators
| Signal Type | Bullish Score | Bearish Score |
|---|---|---|
| OBV Bullish Divergence | +2 | - |
| OBV Bearish Divergence | - | +2 |
| OBV Confirmation | +0.5 | +0.5 |
Valuation Metrics
| Signal Type | Bullish Score | Bearish Score |
|---|---|---|
| Near 52W Low | +0.5 | - |
| Near 52W High | - | +0.5 |
| Analyst Upside >15% | +1 | - |
| Analyst Downside >10% | - | +1 |
Why These Weights?
High Weight Signals (+2 to +2.5)
These are reliable, less frequent signals:
- Crossovers (KST, Supertrend, Ichimoku TK) - Major trend changes
- Extreme readings (RSI below 30 or above 70, CCI ±200) - High probability reversals
- Divergences (OBV) - Smart money activity
Medium Weight Signals (+1 to +1.5)
These are confirming signals:
- Trend position (price vs EMAs, above/below cloud)
- Momentum direction (MACD, Aroon trend)
- Volatility extremes (Bollinger Bands)
Low Weight Signals (+0.5)
These are supporting signals:
- Neutral momentum (RSI 50-70)
- Valuation context (52-week range)
- Confirmation (OBV matching price)
Example Calculation
Let's say AAPL has these signals:
| Signal | Score |
|---|---|
| Golden Cross | +2 bullish |
| Price above EMAs | +1 bullish |
| RSI at 55 | +0.5 bullish |
| MACD Bullish | +1 bullish |
| Supertrend Uptrend | +1 bullish |
| Ichimoku Above Cloud | +1.5 bullish |
| Stochastic at 75 | 0 (neutral) |
Calculation:
Bullish Score = 2 + 1 + 0.5 + 1 + 1 + 1.5 = 7.0
Bearish Score = 0
Net Score = 7.0 - 0 = 7.0
Recommendation: STRONG BUY (Net Score ≥ 4.0)
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