Glossary
The terms of the analysis, explained plainly. To see how they come together into a score, read the methodology.
Scores and signals
A single figure given to each asset, combining technical analysis and financial soundness. The higher the score, the more favourable the setup is judged at the time of the analysis.
A plain reading of the score. Buy: a favourable setup. Watch: mixed signals, worth following. Avoid: an unfavourable setup. This is not an instruction, it is a summary.
The share of each analysis in the score. By default 65% technical and 35% fundamental, adjustable from 100% technical to 100% fundamental to suit your style.
The part of the score that comes from prices: trend, momentum, volume, volatility, market regime.
The part of the score that comes from the company's accounts: valuation, profitability, debt, growth. Not computed for commodities or crypto.
An extra marker for companies that combine high growth, accumulation on volume and momentum, without excessive debt.
Technical indicators
The underlying direction of the price, measured by the moving averages (50 and 200 days) and the way they point.
The strength and speed of the price move. Positive momentum means an upward dynamic is under way.
An oscillator from 0 to 100 measuring whether an asset has risen or fallen too fast. Often read as overbought above 70 and oversold below 30.
The gap between two moving averages, and the average of that gap. It spots changes of dynamic: crossings, and moves above or below zero.
An envelope around the price based on volatility. A price near the upper band is stretched to the upside, near the lower band to the downside.
A measure of volatility: the average size of the moves. It is used in particular to place a protective stop in proportion to the holding's risk.
Volume accumulated according to the direction of each session. A rising OBV suggests accumulation, real buying interest behind the move.
A set of lines forming a cloud. Where the price sits relative to the cloud gives a quick reading of the trend and of support.
It measures the strength of a trend, not its direction. A high ADX means a clear trend, a low ADX a market going nowhere.
The way the long moving average points. A positive slope confirms an underlying uptrend.
The size of the price swings. High volatility means wider moves, so both more risk and more potential.
The general context (a clear trend or a market going nowhere, calm or jumpy) which adjusts the score to avoid false signals.
Fundamentals
The share price divided by earnings per share. It says how many years of earnings you are paying for; a low P/E can point to a reasonable valuation.
The price divided by the book value of equity. Below 1, the market values the company at less than its net book assets.
Earnings divided by shareholders' capital. A high ROE means a company that puts its equity to good use.
The level of debt relative to equity. The higher it is, the more the company depends on its borrowings.
The rise in sales from one year to the next. Sustained growth is a driver of valuation.
Decision and validation
A simulation of a strategy over past data, to measure what it would have given. It measures the past; it does not predict the future.
An automatic selling level placed below the price, at a distance proportional to volatility (ATR), to cap the loss on a position.
The exit level aimed for on the upside. Combined with the stop and a maximum holding time, it defines a position's rules in the backtest.
A relative rotation chart showing which sectors lead, which are running out of steam, and which way the cycle is turning.
The tone, positive or negative, of recent articles about a holding, used as an extra signal.