forexbrolive

How to read stocks signals

Stocks are US equities scored on the 1h timeframe. Unlike forex, these trade only during market hours, so a signal is most useful while the exchange is actually open - extended and pre-market moves carry thin liquidity and wider spreads.

Spot direction during market hours

Every stocks signal is a direction (BUY / SELL / NEUTRAL) plus a strength (0-100). The direction tells you which way the pair is leaning right now; the strength tells you how hard the raw data agrees. Strength measures conviction - it is not a win rate.

The three engines

Signals are not repackaged from other indicators. They are computed from raw price closes on the 1h timeframe through three independent engines:

Momentum

Multi-horizon rate of change, standardized as a z-score against the pair's own recent history. A pair only fires when it is moving unusually hard for itself - not by a fixed percentage. That keeps low-volatility and high-volatility pairs on even footing.

Trend alignment

EMA slope plus where price sits relative to it. Momentum and trend must agree - a strong push against the prevailing trend is suppressed rather than chased.

Volatility regime

Pseudo-ATR ratio vs the pair's own recent baseline. Flags high(wider stops, more risk) and quiet (tight range) conditions so you know whether the setup is tradeable right now.

How to read a card

Take this example:

AAPLBUY
58%
momentum: building up
trend: up
volatility: normal range
atr: 1.15%
confluence: 8/21

What makes stocks different

Stocks are driven by earnings, macro data, and single-name news rather than the continuous macro flow that moves currencies. A BUY on NVDA after a strong quarter is a very different read than a BUY on a currency pair - fundamentals can gap a stock through any technical level overnight. The z-score engine flags unusually strong raw momentum, but it cannot see an earnings date, so treat strength as a timing signal. These tickers trade on a fixed session, so check the volatility regime before acting: a HIGH volatility reading on an equity usually means news is moving it, not that a clean technical setup is forming.