METHODOLOGY
# EDGE SIGNAL uses a deterministic 8-factor scoring system to evaluate every stock in the S&P 500 universe daily. Highest score = signal. All algorithmic. No discretion. No LLM. Pure quant.
# SCORING SYSTEM
# TOTAL: 100 PTS MAX
Weighted blend of 1d, 5d, 1mo, 3mo price changes. Penalizes overextended moves.
Price vs SMA10/20/50/200. Rewards aligned MAs and golden cross.
Current volume vs 20d avg. Rewards above-avg volume on positive action.
RSI analysis. Identifies oversold bounce potential and bullish zones.
MACD crossover detection. Prioritizes fresh bullish crossovers.
Earnings, P/E, profit margin, revenue growth. Neutral when unavailable.
Performance vs S&P 500 trailing month. Rewards outperformance.
Upside/downside ratio from support, resistance, ATR. Min 1.5:1.
# RISK CLASSIFICATION
72-100
LOW RISK
55-71
MED RISK
0-54
HIGH RISK
# ENTRY / EXIT FRAMEWORK
# ENTRY ZONE:
Nearest support + ATR. Within 1-2% of current.
# TARGET 1:
Conservative: nearest resistance or 2.5x ATR above.
# TARGET 2:
Extended: 4.5x ATR or breakout. Capped at 18%.
# STOP LOSS:
Below entry: support, swing low, or 2x ATR.
# GUARDRAILS
■ Min price: $5.00/share
■ Min avg volume: 500K shares/day
■ Min market cap: $1B
■ ATR range: 0.5%—8% of price
■ RSI exclusion: <15 or >85
■ Universe: S&P 500 constituents
■ No OTC, ADR, or grey-market
# DISCLAIMER
EDGE SIGNAL is algorithmic research only. Not financial advice. Not a recommendation. Past performance ≠ future results. Markets involve loss risk. Do your own research. Consult a licensed advisor. No liability for losses from acting on this data.