Also called Confidence threshold, Entry score
Signal confidence
The weighted entry score a bar must clear before the strategy opens a trade, built from trend and momentum agreement. It says nothing about whether a stock is cheap.
Updated 2026-09-03
Signal confidence is a score out of 170 measuring how strong a trading entry looks at the moment it fires. It is assembled from the individual indicator readings: how far the moving averages have separated, how wide the MACD spread is, whether the trend has strength behind it, and whether the RSI is in a range where the signal has historically held up.
It is a relative measure, not a probability. A score of 140 does not mean a 140-out-of-170 chance of being right. It means this entry looks stronger on the same criteria than one scoring 90, and nothing more than that.
See also
- Valuation confidence — How far the model will stand behind its own answer. Low means free cash flow has been volatile, the price sits far above what the business generates, or a margin had to be guessed. It is not the strategy signal score.
- Backtest — Running a set of rules over history to see what they would have done. It shows what did happen, never what will, and it flatters any rule tuned on the same data.
- EMA — An average of recent prices that weights the latest days most heavily, so it turns faster than a simple average. A fast one crossing above a slow one is the classic trend signal.
- MACD — The gap between a fast and a slow moving average, plotted against its own average. Widening upward means momentum is building, narrowing means it is fading.
- ADX — Measures how strong a trend is without saying which way it points. Low readings mean a market going sideways, where trend-following strategies bleed.
Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.
