Methodology
How the composite signal is calculated
Every score on this site comes from the same fixed formula applied to daily price data. No discretion, no manual overrides, no proprietary black box. This page documents the whole calculation so you can decide for yourself how much weight it deserves.
What it measures
Eleven directional technical indicators are computed from up to two years of daily open, high, low, close and volume data. Each one is reduced to a “lean” on a five-point scale — −1, −0.5, 0, +0.5, +1 — running from bearish to bullish.
Those leans are combined in two weighted stages into a single score from −100 to +100. Two further measures, ADX and ATR, take part without ever casting a directional vote: ADX adjusts confidence in the final number, and ATR sets the tolerances used to detect support and resistance.
What it does not measure: earnings, valuation, company news, sector rotation, macro conditions, or anything else outside the price and volume series. A stock can look excellent here the day before a disastrous earnings report.
Stage one: four categories
Indicators are grouped into four categories, and each category carries a fixed share of the final score. Trend dominates deliberately — direction is the primary question, and momentum readings are treated as qualifiers on it rather than as equals.
| Category | Weight | What it asks |
|---|---|---|
| Trend | 40% | Direction and persistence of the move |
| Momentum | 25% | How stretched the move has become |
| Price Structure | 20% | Position relative to levels and volatility bands |
| Volume | 15% | Whether participation confirms the move |
Stage two: weights inside each category
Within a category the indicator weights sum to 100%, and the category weight above is then applied on top. Weights are not equal: the most widely referenced indicator in each group leads, and indicators that largely restate another one are discounted rather than counted twice.
Trend (40%)
Momentum (25%)
Price Structure (20%)
Volume (15%)
Two specific choices are worth calling out. Parabolic SAR gets the lowest trend weight because it is binary — it always outputs a full ±1, with no neutral state, so an equal weighting would let it overpower the more granular readings. Williams %R gets the lowest momentum weight because it is highly correlated with stochastic %K; both measure position within the same recent range, and counting them equally would double-count one observation.
Missing data is removed, not treated as neutral
If an indicator cannot be computed — a recently listed stock with fewer than 200 days of history has no 200-day moving average — it is dropped from the calculation and the remaining weights in that category are renormalised back to 100%. It is not scored as zero. A zero lean means “the indicator ran and found nothing directional”, which is a different statement from “the indicator could not run”. Conflating the two would drag newly listed stocks toward neutral for the wrong reason.
The trend-strength filter
After the categories are combined, ADX is checked. ADX measures how strongly a market is trending without saying in which direction. When it reads below 20 — the conventional threshold for “no meaningful trend” — the composite score is multiplied by 0.5.
The reason is that directionless markets are where technical indicators are least trustworthy and most talkative. Oscillators swing between extremes, moving averages cross back and forth, and every one of those signals looks as confident as it would during a genuine trend. Halving the score is a way of saying so numerically. When this adjustment is applied, the ticker page states it explicitly rather than quietly adjusting the number.
From score to label
Limits you should know about
The weights are not backtested. They are a reasoned first pass based on how these indicators are conventionally read, not values optimised against historical returns. They should be treated as a defensible starting point and nothing more.
The thresholds are inherited conventions. RSI 70/30, CCI ±100, ADX 20 — these are the standard numbers from the literature, applied uniformly across all 200 tickers. They are not calibrated per stock, and a volatile semiconductor and a stable utility reach them under very different circumstances.
Everything here is lagging. Every calculation is derived from prices that have already printed. Nothing on this site forecasts anything.
Data is daily and delayed. Prices come from a third-party provider and are refreshed once per day. There is no intraday or real-time data anywhere on the site.
A composite score is not a recommendation. It is an arithmetic summary of eleven mechanical readings. It does not know your time horizon, your risk tolerance, your tax position, or anything about the company beyond its price history.
Trend Chart is published by Asset Trend Reports Team. We do not offer investment advice or manage money — the site is an automated analysis tool, and its trustworthiness rests on the transparency of the calculation documented above. Read the full disclaimer.