NVDA

What it measures Productivity of the asset base. Combined with net margin, this is the DuPont decomposition of ROA: ROA = net_margin * asset_turnover.

Formula Asset Turnover = revenue_ttm / average_total_assets

For NVDA Revenue compounds quickly off the asset base - retail and asset-light services run high here.

What it measures Sanity-check on earnings quality. Persistently below 1 means working capital or capex is consuming earnings; persistently above 1 is unusual and may flag accounting conservatism or non-cash drags.

Formula Cash Conversion = free_cash_flow_ttm / net_income_ttm

For NVDA Earnings quality is good - real cash arriving in step with reported income.

What it measures End-to-end conversion ratio: of every dollar of revenue, how much falls through to genuine free cash flow available to capital providers? More honest than net margin because it accounts for capex needed to maintain the business.

Formula FCF Margin = (free_cash_flow_ttm / revenue_ttm) * 100

For NVDA Cash flowing through to owners - the hallmark of high-quality compounders.

What it measures First-line profitability measure - how much revenue is left after the direct cost of producing it. Stable gross margin suggests pricing power and low input-cost exposure.

Formula Gross Margin = ((revenue_ttm - cogs_ttm) / revenue_ttm) * 100

For NVDA Strong unit economics - software, branded consumer, and IP-heavy businesses cluster here.

What it measures Operating margin minus interest, tax, and below-the-line items. Useful but noisy because tax rate and debt service distort year-to-year comparability.

Formula Net Margin = (net_income_ttm / revenue_ttm) * 100

For NVDA Strong all-in profitability after every expense category.

What it measures Captures the leverage between revenue and operating profit. Core test of whether a business converts sales into income at the operating level.

Formula Operating Margin = (operating_income_ttm / revenue_ttm) * 100

For NVDA Pricing power and operating leverage - software and platform models commonly run above 30%.

What it measures Capital-efficiency measure that ignores how the assets are financed. Useful for comparing within a sector but biased low for asset-heavy businesses (banks, utilities) and high for asset-light ones.

Formula ROA = (net_income_ttm / average_total_assets) * 100

For NVDA Assets are working hard - typical of asset-light, high-margin businesses.

What it measures Headline profitability metric. High ROE compounds book value if the business can reinvest at the same return. Beware of buybacks artificially inflating ROE by shrinking the denominator.

Formula ROE = (net_income_ttm / average_common_equity) * 100

For NVDA Capital is being put to work effectively - sustainable when supported by real economic moats.

What it measures Whether the company can cover near-term obligations from near-term assets. Below 1.0 doesn't mean insolvent (cash flow can cover the gap) but is worth a closer look.

Formula Current Ratio = current_assets / current_liabilities

For NVDA Comfortable liquidity buffer - large working-capital cushion.

What it measures How much the company funds itself with debt vs. equity. Higher leverage amplifies both returns and risks; the appropriate level varies wildly by industry.

Formula Debt-to-Equity = total_debt / common_equity

For NVDA Capital structure is debt-heavy - amplifies equity returns but also stress in downturns.

What it measures Strips out short-term operating debt and revolver use to focus on permanent capital structure. Useful when comparing companies that fund working capital differently.

Formula LT D/E = long_term_debt / common_equity

For NVDA Permanent leverage is high - watch coverage ratios and refinancing windows.

What it detects Buys oversold pullbacks within an established uptrend (price above the 200-day SMA). Holds while RSI(2) is below an exit threshold; exits when RSI(2) crosses above 60.

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.

Parameters period=2, oversold=10, exit=60, regime_ma=200

For NVDA Active pullback-buy in an established uptrend — price bouncing off a 2-period oversold reading.

What it detects ADX (Average Directional Index) measures trend strength regardless of direction. Below ~20 historically associates with sideways/choppy markets unfavorable to trend strategies.

Trigger rule +1 while ADX is below the threshold (weak trend); 0 otherwise.

Parameters period=14, weak_threshold=20

For NVDA ADX below threshold — trend is weak, prefer mean-reversion to trend strategies right now.

What it detects Turtle-style breakout signal: enters long on a close above the highest high of the lookback window, short on a close below the lowest low. Holds the position for a fixed number of bars.

Trigger rule +1 on long entry, held for hold_bars; -1 on short entry, held for hold_bars.

Parameters period=20, hold_bars=20

For NVDA Active long breakout state — close above the N-day highest high.

What it detects Holds +1 while the fast moving average is above the slow one (bullish bias), -1 when below (bearish bias). Whipsaws in chop; works best when combined with a regime filter.

Trigger rule +1 while fast > slow, -1 while fast < slow.

Parameters fast=5, slow=10, ma_type=ema

For NVDA Fast MA above slow MA — bullish bias state held.

What it detects The Parabolic SAR plots a stop-and-reverse dot above or below price; when price crosses the SAR, the trend side flips. The signal fires on the flip bar.

Trigger rule +1 on flip from above-price (bearish) to below-price (bullish); -1 on flip the other way.

Parameters accel=0.02, max_accel=0.2

For NVDA SAR flipped from above to below price — switch to long bias.

What it detects Simplest possible regime filter: long-only when price is above its long-term MA, flat or short-only when below. Often used to gate other signals.

Trigger rule +1 while close > MA, -1 while close < MA.

Parameters ma_period=200

For NVDA Price above the long-term MA — bullish regime, gate longs on.

What it detects 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.

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.

Parameters lookback=7, regime_ma=200

For NVDA Active Connors Double-7 pullback in an uptrend — buy the 7-day low, sell the 7-day high.

What it detects Identifies the most recent significant swing high and low, projects standard Fibonacci levels (23.6%, 38.2%, 50%, 61.8%, 78.6%), and tags bars where price interacts with one of those levels.

Trigger rule Reports the level price is closest to, in price units, when price is within the proximity band.

Parameters swing_lookback=60, levels=[0.236,0.382,0.5,0.618,0.786]

For NVDA Price interacted with a key Fibonacci level on its way up — likely springboard or resistance to clear.

What it detects 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.

Trigger rule +1 if prior trend was down and current outside-range closes higher than it opens; -1 in the symmetric down-reversal case.

Parameters window=10

For NVDA Outside-range bar after a downtrend closed up — reversal-up reversal pattern.

What it detects Fits a trendline through pivot points and flags decisive closes through the line. Distinguishes a clean break from a wick-test by requiring the close to violate the line.

Trigger rule +1 on close above a downward trendline; -1 on close below an upward trendline.

Parameters lookback=60, min_touches=2

For NVDA Decisive close above a downward trendline — resistance line gave way.

What it detects A wedge is a price compression where two trendlines converge. Rising wedge (both lines sloping up but upper less steep) typically resolves down; falling wedge resolves up.

Trigger rule +1 on confirmed break above falling wedge; -1 on confirmed break below rising wedge.

Parameters lookback=40, min_touches=2

For NVDA Falling wedge resolved up — compression broke in favor of buyers.

What it detects 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.

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).

Parameters trend_window=20

For NVDA Decline running on falling volume — sellers losing conviction, reversal candidate.