Recommendations

How we convert net scores into actionable trading recommendations.

Net Score → Recommendation

Net Score = Bullish Score - Bearish Score

Net Score	Recommendation	Confidence	Action
≥ 4.0	STRONG BUY	High	Enter full position
2.0 to 4.0	BUY	Medium	Enter partial position
0.5 to 2.0	HOLD	Medium	Mixed signals, wait
-1.5 to 0.5	HOLD	Low	Slightly bearish, be cautious
-3.0 to -1.5	SELL	Medium	Reduce position
< -3.0	STRONG SELL	High	Exit entirely

Understanding Each Recommendation

STRONG BUY (Net Score ≥ 4.0)

What it means: Multiple indicators across different categories are aligned bullish.

Typical signals:

• Trend indicators: Golden Cross, Supertrend bullish, above Ichimoku cloud
• Momentum indicators: RSI not overbought, MACD bullish
• Volume: OBV confirming or showing accumulation

Action:

• Enter full intended position
• Set stop-loss based on ATR (2x ATR below entry)
• Trail stop as price rises

Example scenario:

Golden Cross (+2) + Supertrend Bullish (+2.5) + 
RSI Oversold (+2) + MACD Bullish (+1) = +7.5 Net Score

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BUY (Net Score 2.0 to 4.0)

What it means: More bullish signals than bearish, but not overwhelming.

Typical signals:

• Some trend confirmation
• Momentum turning positive
• No major bearish warnings

Action:

• Enter 50-75% of intended position
• Wait for additional confirmation before adding
• Use tighter stop-loss

Example scenario:

Price above EMAs (+1) + MACD Bullish (+1) + 
Stochastic Bullish Cross (+2) = +4.0 Net Score

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HOLD (Net Score -1.5 to 2.0)

What it means: Mixed signals. Some bullish, some bearish.

Action:

• If you own it: Keep position, don't add
• If you don't own it: Wait for clearer signals
• Monitor for trend development

Example scenario:

Golden Cross (+2) + RSI Overbought (-2) + 
MACD Bullish (+1) = +1.0 Net Score

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SELL (Net Score -3.0 to -1.5)

What it means: More bearish signals than bullish.

Typical signals:

• Trend weakening or reversing
• Momentum turning negative
• Volume showing distribution

Action:

• Reduce position by 50%
• Tighten stop-loss on remaining
• Prepare to exit fully if trend worsens

Example scenario:

Death Cross (-2) + RSI Neutral (-0.5) + 
MACD Bearish (-1) = -3.5 Net Score

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STRONG SELL (Net Score < -3.0)

What it means: Multiple indicators aligned bearish. High probability of continued decline.

Typical signals:

• Death Cross or Supertrend bearish flip
• RSI overbought or momentum collapsing
• OBV showing distribution
• Price below key support levels

Action:

• Exit position entirely
• Do not try to "catch the falling knife"
• Wait for reversal signals before re-entering

Example scenario:

Death Cross (-2) + Supertrend Bearish (-2.5) + 
RSI Overbought (-2) + OBV Divergence (-2) = -8.5 Net Score

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Confidence Levels

High Confidence

• Net Score is extreme (≥4 or less than -3)
• Multiple indicator categories agree
• No conflicting signals

Medium Confidence

• Net Score is moderate
• Most indicators agree
• Some minor conflicts

Low Confidence

• Net Score is near zero
• Indicators are mixed
• Wait for clearer signals

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Position-Specific Advice

Our system also considers your current position when making recommendations:

Your Position	Signal	Advice
Up 100%+	SELL	Take profits! You've doubled your money
Up 50%+	HOLD	Consider selling half to lock in gains
Down 30%+	SELL	Cut losses, preserve capital
Down 30%+	BUY	Signals improving, could average down

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Sample Signal Report

{
  "symbol": "AAPL",
  "price": 178.50,
  "recommendation": "STRONG BUY",
  "confidence": "HIGH",
  "summary": "Multiple indicators suggest this is a good buying opportunity.",
  "scores": {
    "bullish": 8.5,
    "bearish": 1.0,
    "net": 7.5
  },
  "signals": [
    {
      "category": "Trend",
      "indicator": "Moving Averages",
      "signal": "BULLISH",
      "explanation": "50-day EMA above 200-day EMA (Golden Cross)"
    },
    {
      "category": "Trend",
      "indicator": "Supertrend",
      "signal": "BUY SIGNAL",
      "explanation": "Supertrend flipped bullish at $172.30"
    }
  ],
  "keyLevels": {
    "support": 172.30,
    "resistance": 185.00,
    "supertrend": 172.30
  },
  "riskManagement": {
    "atr": 3.25,
    "suggestedStops": {
      "tight": 175.25,
      "normal": 172.00,
      "wide": 168.75
    }
  }
}

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Next: Trend Following Strategy →