Use the Stockscores to focus on strong stocks and avoid the weak
The Stockscores indicators will help you avoid weak stocks and focus on those with good potential. They are meant for position trading with anticipated hold periods of weeks or months. For this type of trading, there are three rules to apply:
1. Sentiment Stockscore > 60
2. Signal Stockscore > 80
3. A predictive chart pattern
Just as important, these rules keep you out of weak stocks
The Stockscores are based on more than a dozen common chart analysis indicators like breaks through support and resistance and momentum. Proprietary Stockscores elements like abnormal trading activity are more heavily weighted. Every stock starts with 50 points with more added or deducted based on the state of the component indicators to produce the Signal Stockscore. The Sentimen Stockscore is a smoothed out average of the Signal.