📐 Methodology

The support level is the low of the last 20 completed sessions. The current price's distance from support is measured in ATR units, so it's relative to the instrument's volatility.

The RSI (period 14) measures the speed and magnitude of price movements on a 0–100 scale. Low values indicate the instrument is oversold, which is often a contrarian signal of a potential rebound.

Measures how much the current price has dropped from the high of the last 20 days. A significant drop from the high can indicate a temporary correction, ideal for DCA entries.

Bollinger Bands (period 20, std. dev. ×2) define a volatility channel around the moving average. The position % indicates where the price sits within the channel: 0% = lower band, 100% = upper band.

Combines MACD (12/26/9, on hourly candles from the last month) with the trend score (1h, 4h changes and vs. previous close). Only evaluated if intraday data is less than 2 hours old. When the MACD histogram starts converging toward zero after a downtrend, this is called momentum exhaustion: the sell-off is losing strength.

A volume spike during a decline can signal capitulation — panicked sellers exhausting their supply — often followed by a rebound. Today's volume so far is compared with the volume for the same hours over the previous 5 sessions, so the comparison is fair at any time of day. The bonus also requires buying pressure ≥ 55%.

The VIX (CBOE) is the 30-day implied volatility on the S&P 500: it rises when the stock market is fearful. High values are historically contrarian moments favorable for buying. It's a global factor, the same for all instruments, updated every 60 minutes.

A decline within an uptrend is more often a correction; the same decline below the 200-session moving average is more often a continuation. If the price is below the SMA200, the raw score is multiplied by 0.5 before normalization. The reason appears among the analysis' rationale.

The Stochastic (period 14, signal 3) measures the price's position relative to the High-Low range of the last N periods, on a 0–100 scale.

Why not in the score: the Stochastic signal has a high correlation with RSI — both measure oversold conditions in the same range. Adding it would double-count the same condition.

Williams %R (period 14) is essentially the inverted Stochastic, on a −100 to 0 scale.

Why not in the score: it shares the same logic and variables as the Stochastic and RSI. Adding all three would create redundancy.

The Donchian Channel (20 days) shows the high and low of the period. The percentage distance from the lower band indicates how close the price is to the recent low.

Why not in the score: the low_20d variable is the same one used to calculate support (Factor 1). Including it would mean counting the same data twice.

ATR (Average True Range, period 14) measures average daily volatility. It's used to calculate Stop Loss, Take Profit and Trailing Stop levels proportional to the instrument's volatility.

Why not in the score: ATR measures volatility, not direction. It doesn't provide a direct opportunity signal — it's a position-sizing tool.

The system automatically detects 5 classic chart patterns on daily data: Double Bottom, Ascending Triangle, Bullish Flag, Falling Wedge, Island Reversal. They're shown as purple chips on the detail page.

Why not in the score: automatic rule-based detection has a high false-positive rate. The patterns are indicative and require visual confirmation from the analyst.