Every chip in either subscore card drills into the metrics or signals that fed it — including the formula, the threshold band, and what the current reading means for BX.
Fundamentals · Valuation
Valuation Weak
26.5
/ 100
Weak Valuation — most metrics in this section are scoring below the professional bands' midpoints.
What it would cost to take over the entire firm (equity plus debt, less cash) per dollar of pre-interest, pre-tax, pre-depreciation operating earnings. Capital-structure-agnostic — directly comparable across heavily and lightly levered businesses, which a P/E can't do. The weakness: EBITDA ignores capex, so capital-intensive businesses look artificially cheap on this metric. Cross-check with EV/FCF when capex is meaningful.
∑
Formula
EV = market_cap + total_debt + preferred_equity + minority_interest - cash; EV/EBITDA = EV / ebitda_ttm
EV/FCF
↓
Cheap on free cash flow — confirm FCF is sustainable and not propped up by working-capital release, deferred capex, or one-time tax benefits that will reverse.
Valuation expressed against the cash actually available to all capital providers after capex. Often more honest than EV/EBITDA when capital expenditure is meaningful relative to depreciation, because EBITDA ignores capex entirely while FCF reflects it. The cleanest single-number 'what would I pay to own this whole business?' valuation lens for capital-intensive firms.
Cheap on revenue once you account for the balance sheet. Confirm gross margin is structurally workable and the business isn't carrying invisible debt that compresses the equity claim.
Industry · Investments & Asset Management · median 5.49 · n=283Damodaran 2026-01
Adjusts the numerator for debt and cash so heavily-levered or cash-rich companies become comparable on a revenue-multiple basis. Particularly useful for cross-industry valuation work where some firms run net cash and others carry meaningful debt loads. Same caveats as P/S: best read alongside gross margin to translate the multiple into expected steady-state earnings power.
The multiple equity analysts most commonly quote because it reflects expected earnings rather than the trailing window. Same caveats as trailing P/E plus one extra: the denominator depends on consensus estimates, which can be systematically optimistic going into a downturn or pessimistic at a cyclical trough. Worth cross-checking against trailing P/E and sell-side estimate trend.
∑
Formula
Forward P/E = price / forward_eps
Greenblatt EY
↑
Limited operating earnings against EV — growth or quality must justify the valuation.
Capital-structure-agnostic earnings yield. Pairs with Greenblatt ROC to compute the famous Magic Formula rank (the universe-rank of earnings yield plus universe-rank of return on capital). Pre-tax operating earnings divided by the full claim on the firm gives a cleaner cross-firm valuation comparison than P/E or earnings yield alone, because it strips out the distortions from leverage, cash, and tax structure.
∑
Formula
Greenblatt EY = EBIT / Enterprise Value * 100
P/B
↓
Trading near or below book — sometimes a margin of safety (when the assets are real and the business earns its cost of capital), sometimes a sign book value will be impaired (banks before a credit cycle, retailers before a write-down).
Industry · Investments & Asset Management · median 2.49 · n=283Damodaran 2026-01
Share price divided by per-share book value of common equity — what the market values the franchise at versus what the accountants say it's worth on paper. Most informative for asset-heavy businesses (banks, insurers, industrials) where book value approximates a liquidation floor; far less informative for asset-light franchises whose value sits in brand, software, or other intangibles that GAAP under-states or excludes entirely.
∑
Formula
P/B = market_cap / common_equity
P/E (TTM)
↓
Market is paying a premium because it expects earnings to grow, margins to expand, or the franchise to deserve a quality re-rating. Verify the growth is in forward estimates and not just a P/E inflated by a temporarily depressed denominator.
Industry · Investments & Asset Management · median 75.30 · n=283Damodaran 2026-01
How many dollars of share price the market is willing to pay for one dollar of trailing-twelve-month earnings. The universal valuation anchor for profitable companies — useful for cross-sector comparison and as a quick read on whether the market expects earnings growth, decline, or a quality re-rating. Sensitive to one-off items in the denominator (write-downs, tax holidays, share buybacks); pair with EV/EBITDA when capital structure or non-cash charges look noisy.
∑
Formula
P/E = market_cap / net_income_ttm
P/S Ratio
↓
Cheap on revenue. Investigate whether margins are structurally low (commodity producer, contract manufacturer) or revenue quality is poor (one-time contracts, channel-stuffing).
Industry · Investments & Asset Management · median 4.59 · n=283Damodaran 2026-01
Useful when earnings are negative, noisy, or one-time-distorted (early-stage growth, restructurings, cyclical troughs). Works best within an industry, not across — gross margin profiles vary so wildly that 1x P/S for a software company means something completely different from 1x P/S for a grocery chain.
∑
Formula
P/S = market_cap / revenue_ttm
PEG
↑
Multiple looks cheap relative to recent growth. The trap: confirm the growth is sustainable, not a one-off rebound off a depressed prior period or a margin spike that's about to mean-revert.
Divides the trailing P/E by the annualised three-year EPS growth rate (in percentage points). Below 1.0 is conventionally read as 'cheap relative to growth'; above 2 implies the multiple is well ahead of recent growth. Sensitive to which growth window you choose and unstable when earnings cross zero — flips sign or explodes when prior EPS is negative.
∑
Formula
PEG = (P/E) / eps_growth_3y_pct
PEGY
↑
Cheap relative to growth-plus-income — confirm both numbers are real and the growth isn't a one-off rebound.
Peter Lynch's adjustment to PEG: adds the dividend yield to the growth rate in the denominator so that mature dividend payers don't get unfairly punished by a low growth rate alone. Sweet spot is 1.0 (P/E equals growth plus yield); below 0.5 often signals a broken growth assumption rather than genuine value; above 2 is over-paying.
Mixed Profitability — roughly balanced strengths and weaknesses.
Asset Turnover
↑
Heavy assets needed per dollar of revenue — utilities, telecoms, heavy industrial, capital goods. Often the right number for the industry, but compounds the impact of any margin compression.
Productivity of the asset base — how efficiently the firm converts assets into sales. Combined with net margin, this is the core of the DuPont decomposition: ROA = net margin × asset turnover. Two businesses can land at the same ROA via opposite paths: thin-margin / high-turnover (Costco, supermarkets) vs. fat-margin / low-turnover (luxury, software).
Heavy capex needed per dollar of revenue — utilities, energy, semiconductor, and heavy industrial territory. Often the right number for the industry, but raises the bar for FCF generation.
Industry · Investments & Asset Management · median 21.02 · n=283Damodaran 2026-01
Lower is generally better for shareholder cash returns — less of every dollar of revenue gets reinvested in maintaining the asset base. But very low values can flag under-investment in a capital-intensive business, which catches up later via deteriorating capacity or competitiveness. Pairs with FCF margin to separate 'thin operating margin' from 'fat operating margin offset by heavy capex'.
∑
Formula
Capex to Sales = capital_expenditures_ttm / revenue * 100
Cash Conversion
↑
Earnings exceed cash — common late-cycle warning when receivables and inventories are building. If sustained, the GAAP earnings story is unreliable; check the working-capital movements on the cash-flow statement.
Sanity-check on earnings quality — a ratio of 1.0 means every dollar of GAAP earnings shows up as free cash flow. Persistently below 1.0 means working-capital build or capex is consuming earnings; persistently above 1.0 is unusual and may flag accounting conservatism (heavy non-cash charges) or a one-time release. Trend matters more than absolute level.
Easier to compare than operating margin across firms with very different leverage and depreciation profiles, because it adds D&A back. Software platforms commonly run above 30%; capital-light service businesses cluster around 20%; capital-intensive industrials sit below 15%. The weakness: ignores the cash needed to maintain the asset base — pair with FCF margin for a complete profitability picture.
∑
Formula
EBITDA Margin = ebitda / revenue * 100
FCF Margin
↑
Cash flowing through to owners — the hallmark of high-quality compounders. Capital-light franchises and software platforms cluster above 25%.
End-to-end conversion ratio: of every dollar of revenue, how much falls through to genuine free cash flow available to all capital providers? More honest than net margin because it accounts for the capex needed to maintain (and grow) the business. The single best indicator of whether the business is a quality compounder or a GAAP-earnings illusion.
Free cash flow the business throws off, divided by what the market currently charges for the equity. Treats the equity claim as a perpetual stream of free cash. More honest than earnings yield because it reflects the cash actually available to shareholders after all reinvestment. Cyclicals can swing below zero in a downturn — read with the trailing-cycle range.
Joel Greenblatt's reformulation of return-on-capital, designed to filter for businesses that earn high pre-tax returns on the tangible operating capital that actually generates EBIT. Excludes goodwill, acquired intangibles, and financial assets so that two firms with the same operating economics rank similarly regardless of acquisition history. Pairs with Greenblatt's Earnings Yield (EBIT/EV) to produce the famous 'Magic Formula' rank — quality stocks at value prices.
Strong unit economics — software, branded consumer, and IP-heavy businesses cluster here. Defensible as long as the moat (brand, switching costs, network effect) holds.
Industry · Investments & Asset Management · median 69.77 · n=283Damodaran 2026-01
First-line profitability measure — how much revenue is left after the direct cost of producing it. Stable or rising gross margin signals pricing power and low input-cost exposure; falling gross margin is one of the earliest reliable signals of competitive pressure or commodity-input squeeze. Industry context is everything: 30% gross margin is excellent for a grocery chain and disastrous for a software company.
Strong all-in profitability after every expense category. Sustainable when the operating margin engine is structural, not when net margin is temporarily inflated by tax holidays or one-time gains.
Industry · Investments & Asset Management · median 18.36 · n=283Damodaran 2026-01
Operating margin minus interest, tax, and below-the-line items. Useful but noisier than operating margin: tax rate changes, debt-service shifts, and one-time items can move net margin year-over-year even when the operating business is unchanged. Always pair with operating margin and FCF margin — divergence between them is a tell about leverage, tax structure, or earnings quality.
∑
Formula
Net Margin = (net_income_ttm / revenue_ttm) * 100
OCF to Net Income
↑
Net income running ahead of operating cash. Check accruals (receivables, deferred revenue, inventories): widening gaps suggest either aggressive revenue timing or working-capital absorption that will eventually bite the cash statement.
Pre-capex version of cash conversion: compares operating cash flow directly to net income, before subtracting capex. Numbers persistently below 1.0 suggest accruals are doing the work (revenue recognised before cash collected, or expenses deferred). Numbers above 1.0 are typically driven by D&A exceeding true economic depreciation — a mild positive sign but not always meaningful.
∑
Formula
OCF/NI = operating_cash_flow_ttm / net_income_ttm
Operating Margin
↑
Pricing power and operating leverage. Software platforms and asset-light franchises commonly run above 30%; durable margin at this level is the hallmark of a moat.
Industry · Investments & Asset Management · median 24.60 · n=283Damodaran 2026-01
Captures the leverage between revenue and operating profit — the core test of whether a business converts sales into income at the operating level. Independent of capital structure (excludes interest) and tax-jurisdiction noise. Trend matters as much as level: an improving operating margin indicates pricing power or operational efficiency gains; a falling margin signals input-cost pressure, wage inflation, or competitive erosion.
Capital-efficiency measure that ignores how the assets are financed. Useful for comparing within a sector but heavily biased by industry — banks and utilities run low ROA by design (huge balance sheets), software and franchise businesses run high ROA (asset-light). The DuPont decomposition links it to ROE: ROE = ROA × (assets / equity) × (1/(1-tax)), so leverage inflates the gap between ROA and ROE.
Pre-tax cousin of ROIC using operating capital employed (long-term debt plus equity, approximately equal to total assets minus current liabilities). Damodaran publishes ROCE by industry annually, so it benchmarks cleanly against sector norms. Particularly useful for capital-intensive businesses where you want to see pre-tax returns on the long-term capital base.
∑
Formula
ROCE = ebit / (total_assets - current_liabilities) * 100
Return on Equity
↑
Capital is being put to work effectively. Sustainable when supported by real economic moats, structural pricing power, or a high-margin asset-light business model — not just leverage.
Industry · Investments & Asset Management · median 15.88 · n=283Damodaran 2026-01
The headline profitability metric. Net income divided by average book equity tells you how productive each dollar of shareholders' capital is. High sustained ROE compounds book value when the business can reinvest at a similar return. Two warnings: ROE rises mechanically with leverage (high D/E inflates ROE without making the business better), and aggressive buybacks can shrink the equity denominator faster than they shrink earnings, artificially boosting ROE even as fundamental returns are flat.
Strong economic engine — the business earns well above its cost of capital. Pair with reinvestment rate to estimate intrinsic compounding (ROIC × reinvestment rate ≈ steady-state growth).
Industry · Investments & Asset Management · median 15.00 · n=283Damodaran 2026-01
Measures how productive the actual operating capital base is, independent of capital structure. Strips out the effects of cash, leverage, and below-the-line items so you see the underlying economic engine. The benchmark is the firm's weighted-average cost of capital (WACC) — sustained ROIC above WACC creates value, sustained ROIC below WACC destroys it. The single most important profitability metric for long-term compounding.
Bottom-line growth on a per-share basis — captures both operating progress and any net buyback effect. The denominator uses the absolute value of prior EPS so a turnaround from negative to positive earnings reads with the conventional sign rather than producing arithmetic nonsense. Pair with revenue growth to separate real franchise expansion from buyback-driven per-share lift.
Top-line growth — the cleanest way to see whether the franchise is expanding. Best read alongside margin trend: revenue rising while margin compresses is often discount-driven volume rather than real growth, and can mask underlying weakness. Compare to industry peers — what looks weak in absolute terms can be best-in-sector if the industry is contracting.
The single best operations-quality metric. Negative CCC means the firm is funded by suppliers — the customer pays before the supplier needs to be paid (Apple, Costco, Amazon at scale). Long CCC ties up working capital and forces operating-loan dependence. Combines three sub-metrics: days inventory outstanding, days sales outstanding, days payable outstanding.
∑
Formula
CCC = DIO + DSO - DPO
Days Sales Outstanding
↓
Cash collection is fast — high-quality receivables, typical of consumer-facing businesses where most sales are cash or card.
How long the average sale sits as a receivable before becoming cash. Earnings-quality flag: receivables growing faster than revenue is one of the cleanest tells for revenue recognition stretching — Beneish flagged exactly this pattern as a primary fraud indicator. Industry context matters: B2B / project businesses run longer DSO than retail, but the trend is more important than the level.
DuPont productivity measure. Combined with margin, it tells the asset-light vs. asset-heavy story: low turnover with high margin is the luxury / branded model, high turnover with thin margin is the supermarket / discount model. Very high turnover in retail can also flag stockouts (lost sales) — the metric reads best industry-relative, not absolute.
∑
Formula
Inventory Turnover = cogs / average_inventory
Fundamentals · Income
Income Weak
28.0
/ 100
Weak Income — most metrics in this section are scoring below the professional bands' midpoints.
Dividend Yield
↑
Real cash income today — but sustainability depends on payout ratio, FCF coverage, and whether the high yield reflects a falling share price (dividend trap risk) rather than a generous payout.
Direct cash income from holding the share. Stable dividend yield over time often signals capital discipline and predictable cash generation; abnormally high yield is frequently a warning that the dividend isn't covered by free cash flow and may be cut. Always read alongside payout ratio and FCF coverage.
You're earning a small income yield on the cap — the rest of the expected return has to come from growth or multiple expansion. Risk: if growth disappoints, the multiple has nothing else to lean on.
Net income divided by market cap, expressed as a percent. Lets you compare equity earning power directly to bond yields: a 6% earnings yield is the equity-side analog to a 6% coupon, with the difference that earnings can grow (or contract) while a bond coupon is fixed. The standard 'is the equity risk-premium adequate?' framing.
Dividend is small relative to earnings — capital is being kept inside the business or returned via buybacks. Read with total shareholder yield to see the full cash-return picture.
Sustainability check on the dividend yield. Below 30% means the dividend has substantial room to grow; 30–60% is the conventional sweet spot for a mature payer; above 85% is stretched and frequently precedes a cut. REITs and utilities run higher than the broad market by design — REIT payouts above 80% are normal because the structure requires distributing most income.
∑
Formula
Payout Ratio = dividends_paid_ttm / net_income_ttm
Total Shareholder Yield
↑
Little cash going back to shareholders — return depends on growth or multiple expansion. Check whether the cash is reinvesting at high returns (a positive) or sitting idle on the balance sheet.
Captures the full cash return to shareholders — dividends plus share repurchases, expressed as a percentage of market cap. Buyback-heavy issuers (Apple, Alphabet) hide their real cash return behind a low headline dividend yield; total shareholder yield surfaces it. Increasingly the right lens for evaluating capital-return quality, especially for tech-era large-caps that prefer buybacks to dividends.
Designed to buy oversold pullbacks within an established uptrend (price above the 200-day SMA). Uses a 2-period RSI rather than the standard 14 to make it hyper-responsive to short-term swings. Holds while RSI(2) is below an exit threshold and exits when RSI(2) crosses above 60 — a classic 1–4 day mean-reversion trade. Whipsaws hard outside an uptrend regime, hence the regime filter.
⚡
Trigger rule
+1 when price is above regime_ma and RSI(2) drops below oversold; held while inside the trade; back to 0 when RSI(2) crosses above exit.
📈
Reading the chart
+1 = pullback-buy state active, 0 = flat. Bear-side variant uses the symmetric short rule.
🔧
Parameters
period=2, oversold=10, exit=70, regime_ma=200
MACD Divergence
MACD histogram printing higher lows beneath lower lows in price — momentum is quietly strengthening before price turns. Reversal-up confirmation tell.
Last trigger
↑ 41d ago
Active hits
0/ 20b
Absolute
—
Weight
1.00×
✕voided by MA Crossover✕voided by Regime Filter✕voided by LT Debt-to-Equity risk gate
Compares price pivots against the MACD histogram (MACD line minus signal line) at those same bars. Bullish divergence: price makes a lower low, histogram makes a higher low — momentum is improving beneath the surface. Bearish divergence: price makes a higher high, histogram makes a lower high. Slower than the MACD signal cross but a richer confirmatory tell — the histogram captures momentum acceleration, not just direction.
⚡
Trigger rule
+1 at the right-hand pivot of bullish divergence; -1 at right-hand pivot of bearish divergence; 0 otherwise.
📈
Reading the chart
+1 = bullish divergence, -1 = bearish divergence.
🔧
Parameters
fast=12, slow=26, signal=9, pivot_window=5
MACD Signal Cross
MACD line crossed down through its signal line — short-term momentum trigger short. Strongest when in a downtrend regime.
Fires on the bar where the MACD line (EMA12 minus EMA26) crosses through the signal line (EMA9 of MACD). Bullish when MACD crosses up through signal, bearish when it crosses down. Far more commonly used as a trade trigger than divergence — see macd_divergence for the slower confirmatory tell. Whipsaws in chop; cleanest when combined with a trend-regime filter.
⚡
Trigger rule
+1 on bullish cross (MACD crosses up through signal); -1 on bearish cross (MACD crosses down through signal); 0 otherwise.
RSI printing higher lows while price prints lower lows — momentum is strengthening even as price still falls. Reversal-up tell that often precedes a turn but doesn't time it.
Last trigger
↑ 41d ago
Active hits
0/ 20b
Absolute
—
Weight
1.00×
✕voided by MA Crossover✕voided by Regime Filter✕voided by LT Debt-to-Equity risk gate
When price prints a lower low while RSI prints a higher low at those same pivot bars, momentum is improving even though price is still falling — a classic bullish divergence that often precedes a reversal up. The bearish mirror fires when price makes a higher high but RSI prints a lower high, telegraphing exhausted upside. Divergences are confirmation tells rather than precise timing signals — best used as a 'something is changing under the surface' alert, not a trade trigger on their own.
⚡
Trigger rule
+1 at the right-hand pivot of a (lower-low price, higher-low RSI) pair; -1 at the right-hand pivot of a (higher-high price, lower-high RSI) pair; 0 otherwise.
📈
Reading the chart
+1 = bullish divergence, -1 = bearish divergence, 0 = no divergence at this bar.
🔧
Parameters
period=14, pivot_window=5, lookback=60
Stochastic Cross
%K crossed down through %D from overbought — short-term sell trigger after a stretched-up move.
Bullish when %K crosses above %D while both lines are below the oversold threshold (typically 20); bearish when %K crosses below %D while both are above overbought (typically 80). Filters out mid-range stochastic crosses, which whipsaw in chop. Best used at well-defined ranges and at trend extremes.
⚡
Trigger rule
+1 on bullish cross in oversold; -1 on bearish cross in overbought; 0 otherwise.
Reports whether the close sits within the configured proximity (default 2%) of the rolling 252-bar high or low. New-highs and new-lows are universally watched screening filters — momentum and breakout strategies start from here, and the broad market's new-high / new-low spread is a foundational breadth indicator.
⚡
Trigger rule
+1 while close is within proximity of the 252-bar high; -1 while close is within proximity of the 252-bar low; 0 mid-range.
📈
Reading the chart
+1 = near 52-week high, -1 = near 52-week low, 0 = mid-range.
🔧
Parameters
window=252, proximity=0.01
Donchian Breakout
Active long breakout state — price exceeded the prior N-day highest high. Trend-follow entry, valid only when gates allow long-side trend risk.
Last trigger
↑ 23d ago
Active hits
0/ 20b
Absolute
—
Weight
1.00×
✕voided by MA Crossover✕voided by ADX Trend Weakness✕voided by Regime Filter✕voided by LT Debt-to-Equity risk gate
Trigger history semantics changed 2026-05-11; rerun scoring before comparing this signal across older and newer runs.
Turtle-style breakout signal: enters long when price exceeds the highest high of the prior lookback window, short when price drops below the lowest low of the prior window. The channel is shifted to the prior bar to avoid lookahead. Holds the position state for a fixed number of bars. Cornerstone of trend-following strategies — works best in directional regimes and gets chopped up in range-bound markets.
⚡
Trigger rule
+1 when the bar high exceeds the prior N-day high, held for hold_bars; -1 when the bar low breaks the prior N-day low, held for hold_bars. Ambiguous bars that exceed both sides are ignored on daily OHLC data.
📈
Reading the chart
+1 = long breakout state, -1 = short breakout state.
🔧
Parameters
period=20, hold_bars=20
Ichimoku
Ichimoku components disagree — no clean setup either direction. Wait for alignment.
Composite trend system: bullish when price is above the cloud (Kumo), the tenkan crosses above the kijun, and the cloud projected ahead is green (Senkou A above Senkou B). Bearish on the symmetric short-side configuration. The full bull/bear signal requires all three components to align, making it slower but cleaner than any single-line indicator.
⚡
Trigger rule
+1 on bullish trigger conditions, -1 on bearish, 0 otherwise.
📈
Reading the chart
+1 = full Ichimoku bullish setup, -1 = full bearish setup.
🔧
Parameters
tenkan=9, kijun=26, senkou_b=52
Parabolic SAR Flip
SAR flipped from below to above price — switch to short bias. Trail-stop short entries here.
The Parabolic SAR (Stop and Reverse) plots a dot above or below price; when price crosses the SAR, the trend side flips and the dot jumps to the opposite side. The flip event itself is the trade trigger. Works well in clean trends, gets whipsawed in chop.
⚡
Trigger rule
+1 on flip from above-price (bearish) to below-price (bullish); -1 on flip the other way.
📈
Reading the chart
+1 = bullish flip, -1 = bearish flip.
🔧
Parameters
accel=0.02, max_accel=0.2
Relative Strength vs SPY
Ticker underperforming the broad market by more than its trailing-year norm — sector or stock-specific headwind in play.
Computes the period-bar log-return spread (ticker minus SPY) and ranks the spread against its trailing 252-bar quantile. SPY = SPDR S&P 500 ETF Trust ('SPDR' = Standard & Poor's Depositary Receipts), the standard proxy for the US large-cap market. Ranking against the trailing window means the same threshold works in both gentle bull markets and high-volatility regimes — the metric is calibrated against the ticker's own history, not a fixed cutoff.
⚡
Trigger rule
+1 while the ticker-vs-SPY spread is in the top high_pct of its trailing window; -1 while in the bottom low_pct; 0 otherwise.
While price is above its 200-day MA (uptrend regime), buy when today's close is the lowest in 7 sessions; exit when today's close is the highest in 7 sessions. A simple, robust short-term mean-reversion system — works because pullbacks within an uptrend tend to be shallow and quickly retraced. Symmetrically, the bearish variant short-sells 7-day highs in downtrends.
⚡
Trigger rule
+1 on entry day (new 7-day low above regime); held until exit on new 7-day high; back to 0 on exit.
📈
Reading the chart
+1 = pullback-buy state active, 0 = flat.
🔧
Parameters
lookback=7, regime_ma=200
Engulfing
Down candle fully engulfed the prior up body after an uptrend — sellers took control inside one session. Reversal-down tell.
Bullish engulfing: a down candle followed by an up candle whose body fully covers the prior body. Bearish engulfing: an up candle followed by a larger down candle covering the prior body. Strongest when it appears after an established trend — the reversal candle erases the prior bar entirely, signalling a clear shift in short-term control.
⚡
Trigger rule
+1 on bullish engulfing after a downtrend; -1 on bearish engulfing after an uptrend.
Price wicked into a Fibonacci resistance level and closed back below it — the level held. Trend-continuation short with the rejection candle as the confirmation.
Identifies the most recent significant swing high and low, projects the standard Fibonacci levels (23.6%, 38.2%, 50%, 61.8%, 78.6%) across the swing, and fires only when price rejects off one of those levels back in the prior-trend direction. In an active uptrend the trigger fires when a bar's low pierces a Fib support by up to 0.5 ATR and closes back above it; in a downtrend the mirror case fires at Fib resistance. A 2×ATR swing-range floor suppresses emission inside noisy consolidations where every level sits within one ATR of every other. Fibonacci levels are self-fulfilling support/resistance — heavily watched by chart-driven traders, so rejections at them tend to act as decision points whether the underlying ratios mean anything or not.
⚡
Trigger rule
+1 in an uptrend when the bar's low pierces a Fib support (within atr_mult x ATR) and the close finishes above it. -1 in a downtrend when the bar's high pierces a Fib resistance and the close finishes below it. 0 otherwise.
📈
Reading the chart
+1 = bullish rejection at Fib support, -1 = bearish rejection at Fib resistance, 0 = no rejection event.
Inverse H&S confirmed — three-trough bottoming pattern that broke its neckline up. Conventional measured-move target is the head-to-neckline distance projected above the neckline.
Last trigger
↑ 31d ago
Active hits
0/ 20b
Absolute
—
Weight
1.00×
✕voided by MA Crossover✕voided by Regime Filter✕voided by LT Debt-to-Equity risk gate
Bearish head-and-shoulders: a left shoulder, a higher center peak (head), and a right shoulder of comparable height to the left, broken by a decisive close below the neckline (the line connecting the two intervening troughs). The inverse pattern — three troughs with a deeper middle and an upward neckline break — is bullish. Among the most-watched and most-cited topping/bottoming patterns in classical chart analysis.
⚡
Trigger rule
+1 at neckline break of inverse-H&S; -1 at neckline break of standard H&S.
When price comes within an ATR-relative band of a key moving average (typically 50- or 200-period) and reverses without closing through it, the MA is acting as support (in an uptrend) or resistance (in a downtrend). The cleanest trend-continuation entry — buy the pullback to a rising MA, sell the rally to a falling MA. The proximity band is sized as 0.5 × Wilder ATR(14), so a high-volatility name and a quiet utility get proportionally-scaled bands instead of a fixed percentage that fires constantly on one and almost never on the other. Failure of the rejection (a clean close through) is itself meaningful and often signals a regime change.
⚡
Trigger rule
+1 when price prints a low near the MA in an uptrend and closes back above; -1 when price prints a high near the MA in a downtrend and closes back below.
📈
Reading the chart
+1 = bullish MA rejection (support held), -1 = bearish MA rejection (resistance held).
🔧
Parameters
ma_periods=[50,200], atr_mult=0.5, atr_period=14
Multi Top/Bottom
Price retested a prior high and rolled — multi-top resistance confirmed. The rejected level is distribution; failure to break it warns of a top.
Finds two or more pivot highs (tops) or lows (bottoms) within a price tolerance and minimum bar separation. Confirmed multi-bottom is bullish — the price level repeatedly defended is acting as support, suggesting a base. Multi-top is bearish — the level repeatedly rejected is acting as resistance, suggesting distribution. Pattern strength rises with the number of touches and the time between them.
⚡
Trigger rule
+1 at confirmation of a multi-bottom (price retests prior low and holds); -1 at confirmation of a multi-top.
A pin bar has a small real body (under ~30% of the bar's range) and a long wick (over ~60%) on one side, sticking out beyond the prior trend. Bullish pin: long lower wick after a downtrend, body near the top — price probed lower and was rejected, buyers absorbed the supply. Bearish pin: long upper wick after an uptrend, body near the bottom. Most reliable at structural levels (prior support/resistance, key MAs).
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Trigger rule
+1 for bullish pin (long lower wick, body near top, after downtrend); -1 for bearish pin.
Morning star (bullish): a big down candle, a small-body middle candle showing indecision, and a big up candle that closes well into the first body. Evening star is the bearish mirror at a top: big up, indecision, big down. The three-candle structure is more reliable than a single doji because it provides built-in follow-through confirmation.
⚡
Trigger rule
+1 on confirmed morning star; -1 on confirmed evening star.
📈
Reading the chart
+1 = morning star (bullish reversal), -1 = evening star (bearish reversal).
🔧
Parameters
middle_body_max=0.3, penetration=0.5
Sushi Roll
No outside-range reversal recently — price action is contained within prior windows.
Last trigger
↑ 69d ago
Active hits
0/ 20b
Absolute
—
Weight
1.00×
✕voided by MA Crossover✕voided by Regime Filter✕voided by LT Debt-to-Equity risk gate
Two consecutive non-overlapping windows where the second window's high is above the first's high AND the second's low is below the first's low (an outside range). Reads as a reversal signal off the prior trend: an outside-range bar that closes against the prior direction is a structural shift in supply and demand, not noise.
⚡
Trigger rule
+1 if prior trend was down and current outside-range closes higher than it opens; -1 in the symmetric down-reversal case.
Fits a trendline through pivot points and flags decisive closes through the line. Distinguishes a clean break (close violates the line) from a wick-test (intra-bar tag that closes back inside the trend). Trendline breaks are early-warning regime-change signals — the prior trend's structure has been violated, and the next leg may move in the opposite direction.
⚡
Trigger rule
+1 on close above a downward trendline; -1 on close below an upward trendline.
A wedge is a price compression where two trendlines converge. Rising wedge (both lines sloping up but the upper less steep than the lower) typically resolves down — price runs out of room as buyers exhaust. Falling wedge (both lines sloping down with the lower less steep) typically resolves up. Compressions resolve eventually; the direction is what the wedge predicts.
⚡
Trigger rule
+1 on confirmed break above falling wedge; -1 on confirmed break below rising wedge.
Trends backed by declining volume tend to lose conviction. The signal compares the slope of price against the slope of volume over a rolling window: if price keeps moving but volume is shrinking, fewer participants are committed to the move. Often precedes a stall or reversal because the move is running on inertia rather than fresh capital.
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Trigger rule
+1 when price is rising but volume slope is negative (weak rally); -1 when price is falling but volume slope is negative (weak decline / potential reversal).
📈
Reading the chart
+1 = weak uptrend (sell into strength), -1 = weak downtrend (cover or buy into weakness).
🔧
Parameters
trend_window=20
OBV Divergence
Distribution beginning even as price breaks higher — smart money may be quietly exiting into strength. Reversal-down confirmation tell.
OBV cumulates signed volume — adds volume on up days and subtracts it on down days. Rising OBV reflects accumulation, falling OBV distribution. Same pivot-pair divergence rule as RSI/MACD: when price makes a new low but OBV doesn't, big-money has stopped selling at the lows. When price makes a new high but OBV lags, the rally lacks volume confirmation — distribution may be quietly underway.
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Trigger rule
+1 at right-hand pivot of (price lower-low, OBV higher-low); -1 at right-hand pivot of (price higher-high, OBV lower-high).
Identifies bars whose volume is well above their recent average AND whose body is small relative to the bar's true range. The classic 'climax' shape: an exhaustion bar where heavy participation produced very little net price change, often marking short-term turning points after a directional run. Bullish climax (capitulation) prints near the low of the bar; bearish climax (distribution) prints near the high.
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Trigger rule
+1 (long-side capitulation) when the climax bar prints near its low; -1 (distribution) when it prints near its high.
Enters +1 when close ≤ lower band, holds until close ≥ middle band. Symmetric short-side state. Captures reversion-to-mean trades inside Bollinger bands — the trade is the move from the band back to the centre, not the breakout. Best in trending-but-noisy regimes where pullbacks cleanly retrace to the midline.
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Trigger rule
+1 enter on close ≤ lower band, exit on close ≥ middle. -1 enter on close ≥ upper, exit on close ≤ middle.
📈
Reading the chart
+1 = long mean-reversion held, -1 = short mean-reversion held, 0 = flat.
🔧
Parameters
period=20, std=2
Bollinger Reentry
Price closed back inside the bands from above — short-term reversion-short signal. Stretched-up move snapping back.
Fires on the bar where the close returns inside the bands after the prior close was outside. Long reentry from below the lower band is a mean-reversion long trigger; short reentry from above the upper band is a mean-reversion short trigger. The reentry — not the initial breakout — is the actual signal, because it confirms the move is reversing back toward the mean.
⚡
Trigger rule
+1 when prior close < lower band and current close inside; -1 when prior close > upper band and current close inside.
📈
Reading the chart
+1 = long-side reentry from oversold, -1 = short-side reentry from overbought.
🔧
Parameters
period=20, std=2
Risk Gates
Gate audit
Blocking active
4 gates blocking, 11 signals voided.
Fundamental
LT Debt-to-Equity
Blocking
Reading
1.45
Score
3.2/100
Voids
✕RSI Divergence✕MACD Divergence✕Declining Volume✕Sushi Roll✕MA Rejection✕Head and Shoulders✕Trendline Break✕Donchian Breakout
High long-term D/E blocks bullish signals — structural-leverage risk.
This gate focuses on structural balance-sheet debt rather than all liabilities.
Book equity distortions can make this ratio noisy. Confirm with debt-to-assets or net debt to EBITDA.
Technical
ADX Trend Weakness
Blocking
Reading
ADX says trend strength is weak; triggered on the latest bar
Voids
✕Trendline Break✕Donchian Breakout✕Ichimoku✕Parabolic SAR Flip✕MACD Signal Cross
Weak trend strength blocks trend-following signals in either direction.
This is a market-condition gate. It targets trend-following signals, especially breakout-style signals, when the tape is choppy.
Technical
MA Crossover
Blocking
Reading
Fast moving average is below the slow moving average; triggered on the latest bar
Voids
✕RSI Divergence✕MACD Divergence✕Declining Volume✕Sushi Roll✕MA Rejection✕Head and Shoulders✕Trendline Break✕Donchian Breakout
Blocks counter-regime signals only when the MA crossover agrees with the long-term regime.
This is a confirmation gate. It only blocks when the long-term regime filter points the same way.
Technical
Regime Filter
Blocking
Reading
Price is below the long-term moving average; triggered on the latest bar
Voids
✕RSI Divergence✕MACD Divergence✕Declining Volume✕Sushi Roll✕MA Rejection✕Head and Shoulders✕Trendline Break✕Donchian Breakout
Blocks signals that oppose the long-term moving-average regime.
This is a market-regime permission rule. It is not a buy signal or a sell signal by itself.
Fundamental
Debt-to-Equity
Caution
Reading
1.45
Score
27.4/100
High debt-to-equity blocks bullish signals — leverage risk.
This leverage gate is useful, but book equity can be distorted by buybacks, accumulated losses, or sector accounting.
Debt-to-equity is fragile when equity is small or negative. Confirm with debt-to-assets or net debt to EBITDA.
This is a debt-service gate. It asks whether operating earnings can cover interest expense.
Interest coverage is less meaningful for banks and insurers because interest expense is part of the operating model.
Fundamental
Piotroski F-Score
Caution
Reading
4/9
Score
40.0/100
Bottom-band Piotroski F blocks bullish signals — fundamental-quality risk.
This is strongest as a value-stock quality filter. It should not be read as a universal bankruptcy test.
Piotroski is most useful when the bullish case is value-led. For high-quality compounders, inspect the failed criteria before treating it as decisive.
Fundamental
Altman Z-Score
Unknown
Reading
No raw value
Bottom-band Altman Z blocks bullish signals — distress risk.
This is a distress-risk gate. It should be treated with extra care outside non-financial operating companies.
Altman Z-Score is most reliable for non-financial operating companies. Banks, insurers, REITs, and other financial balance sheets need sector-specific solvency checks.
Fundamental
Beneish M-Score
Unknown
Reading
No raw value
Bottom-band Beneish M blocks bullish signals — accounting-quality risk.
This is an earnings-manipulation risk gate. It is not a fraud finding; it tells the reader to verify the accounting.
Beneish M-Score can be noisy for firms with unusual accounting structures. Use the raw components before making a final call.
Fundamental
Cash Ratio
Unknown
Reading
No raw value
Visual cash-cushion flag — does not mute signals.
Caution-only — does not block or re-score any signal.
Low cash can matter in stress. Very high cash can be capital-allocation context rather than a reason to block a bullish signal.
Cash Ratio is less useful for banks and insurers because cash and liquid assets are part of their operating model.
Fundamental
Current Ratio
Unknown
Reading
No raw value
Visual liquidity flag — does not mute signals.
Caution-only — does not block or re-score any signal.
Low readings suggest liquidity pressure. Very high readings may indicate inefficient working capital, but they should not be treated like distress.
Liquidity ratios are less useful for banks and insurers because their balance sheets are structured differently.
Fundamental
Net Debt / EBITDA
Unknown
Reading
No raw value
High net debt / EBITDA blocks bullish signals — credit-leverage risk.
This is a credit leverage gate. Tolerable levels vary by industry and cash-flow stability.
Utilities and telecom companies can often carry more debt than asset-light businesses. Banks and insurers need different leverage measures.
Fundamental
Quick Ratio
Unknown
Reading
No raw value
Visual liquidity flag — does not mute signals.
Caution-only — does not block or re-score any signal.
This liquidity check strips inventory out of current assets before comparing to current liabilities.
Quick Ratio is less useful for banks and insurers because their balance sheets are structured differently.
Fundamental
Debt-to-Assets
Clear
Reading
0.26
Score
62.3/100
High debt-to-assets blocks bullish signals — balance-sheet leverage risk.
This leverage gate is more stable than debt-to-equity when book equity is small or distorted.
Financial firms require sector-specific capital ratios, so debt-to-assets should not be the only risk check there.
Fundamental
Sloan Ratio
Clear
Reading
-0.032
Score
87.2/100
Visual accruals-quality flag — does not mute signals.
Caution-only — does not block or re-score any signal.
High positive accruals are the main concern. Large negative readings can also deserve review, but usually should not block by themselves.
Raw Financials
Most-recent reported values. Bar shows where each value lands on the 0–100 absolute-band score, with ticks at the 40 / 55 / 70 verdict cutoffs.
