Method · 2 min read
Signal confluence
Understand how the app combines seven technical signals into a single score, and why that score remains a summary, not a prediction.
The essentials
The app computes seven technical signals: the long-term trend (EMA50 versus EMA200), the MACD, the price’s position relative to the EMA50, the RSI, the Bollinger Bands %B, volume flow (OBV) and momentum. Each one votes bullish or bearish with a strength between 0 and 1, or abstains when it has nothing clear to say.
The votes do not all carry the same weight: trend signals count for more than confirmation signals. The score adds up the votes, each according to its strength and weight, then brings the result onto a scale from -100 to +100. A signal that abstains counts as zero: it dilutes the score instead of being ignored.
- From +50 to +100: strongly bullish.
- From +20 to +49: bullish.
- From -19 to +19: neutral.
- From -49 to -20: bearish.
- From -100 to -50: strongly bearish.
The value of confluence is that any single indicator can misfire or give an isolated signal that goes nowhere. When several independent signals point in the same direction, the chance that it is mere statistical noise goes down: agreement across multiple measurements reduces the risk of a false signal, even though it never eliminates it entirely.
Interactive lab
Build a market, the app gives its score
Start from a scenario, then move the settings. The score is computed with the app's exact formula.
Confluence score
+61
Strongly bullish
- +50 … +100Strongly bullish
- +20 … +49Bullish
- −19 … +19Neutral
- −49 … −20Bearish
- −100 … −50Strongly bearish
The seven votes
Each bar shows how strongly a signal votes. Trend signals weigh more than confirmation signals.
- Long-term trendBullish
- MACDBullish
- Price / EMA50Bullish
- RSINeutral
- Bollinger %BNeutral
- Volume (OBV)Bullish
- MomentumBullish
Simulated data. The calculations are the app's own: same formulas, same thresholds.
Check what you learned
The RSI is oversold, yet the score stays negative. Why?
Going further: contradictory signals
A score close to zero does not mean nothing is happening: most often it means the signals contradict each other, some voting bullish and others bearish, so that they cancel out in the sum.
That disagreement is itself useful information. It typically reflects a phase of market indecision, or a market moving sideways in a range rather than trending clearly, where trend indicators and reversal oscillators send opposing messages.
Expert: weighting, graded strengths and strong trends
The weights follow common technical-analysis practice: trend indicators dominate, momentum comes next, and mean-reversion oscillators and volume act as confirmation. Strengths are graded: an RSI that barely crosses its threshold barely votes, an RSI far beyond it votes at full strength, and the same goes for the gap between the EMA50 and the EMA200.
One rule corrects a known flaw: in a strong, well-established trend, overbought conditions, or oversold ones in a downtrend, can last a long time. In that case, the RSI and %B votes that go against the trend are given less say. These choices serve readability: they do not claim to adapt perfectly to every market regime.