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Setup, rotation & screening

Setup Conviction Score

Education only · our voice · free public data

Definition

A 0–100 composite that grades how many favorable factors line up behind a potential trade — a normalized way to compare setup quality across names and days.

How to read it

The score blends trend alignment, relative strength, volume/flow, multi-timeframe agreement, and proximity to structure (support/resistance, moving averages, Fibonacci zones) into one number. Higher is better, but the score grades quality, not certainty — a 90 can still fail. Its best use is triage and sizing: rank candidates, focus attention on the top cohort, and scale exposure to conviction. Because it is a composite, always inspect which components drive a given score rather than trusting the headline number.

How practitioners use it

Used as context among multiple indicators — never as a standalone signal to act.

Less common professional uses

Weight the score by the prevailing regime — the same 75 means less in a stressed regime where correlations spike and idiosyncratic setups get overwhelmed by macro. Watch for component crowding: if relative strength and multi-timeframe MAs are really the same trend measured twice, the composite double-counts and overstates conviction. Cross-reference the score against the multi-indicator consensus — agreement between an independent bottom-up score and a top-down consensus is higher-quality than either alone.

Sources & provenance

Composite of technical, relative-strength, and flow inputs; Educational framework; not investment advice

This page is educational content published by Pachira Aquatica Global LLC. It is not investment advice and not a recommendation.

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