Start here
The stock market, without the jargon
New to all this? You're in good company. Below, we explain every finance word you'll see in the app — the way you'd explain it to a friend.
How to read a signal in 30 seconds
- 1. Start with the verdict. Every card opens with one plain line: Looks like a buy, Early setup, Wait, or Avoid. That's really all you need.
- 2. Read the one-sentence reason. It explains why in everyday language. No finance degree required.
- 3. Curious? Tap "Show the numbers." That opens up the technical bits (RSI, MACD, volume, and so on) for people who like detail. You can safely skip it.
- 4. Note the "we'd be wrong if" price. That's the level that would tell us the idea isn't working. If the stock drops below it, it's time to step away.
One honest note: nothing here is a sure thing. These tools tilt the odds in your favor — they don't remove the risk. Only invest money you can genuinely afford to lose.
Buy side — based on the buy-setup score (0–100)
- 0–27No setup — Not enough buy signals yet.
- 28–44Forming — A signal or two showing up; too early to act.
- 45–64Early setup — Several signals lining up. A reasonable spot for a small starter if you like the name.
- 65+Looks like a buy — Multiple independent signals confirm together — the engine's highest-conviction buy band.
Sell side — based on the distance-to-top score (0–100)
- 0–32Plenty of room — Move still looks young vs. similar past runs.
- 33–65Middle of move — Trend intact; no urgency to trim.
- 66–89Trim soon — Stock has run about as far as similar moves usually go. Odds shift toward trimming.
- 90+Sell or trim now — Move is stretched at or past the historical top zone — sell or trim back.
How the Decision Engine decides: each side blends multiple independent signals — trend (EMA/ADX), momentum (RSI, MACD), volume behavior, volatility (ATR), and distance from key moving averages — then compares the current move to the stock's own history of similar moves. The higher the score, the more signals agree. When both sides score closely, we show a "mixed signals" notice instead of a one-sided verdict. This is decision support, not financial advice.
Glossary
(36 terms)Indicators
- RSI
- A 0–100 meter showing if a stock has moved too far, too fast. Below 30 = often 'oversold' (potential bounce). Above 70 = often 'overbought' (potential pullback).
- RSI (Relative Strength Index) compares recent gains to recent losses over the last 14 days. Think of it as a 'rubber-band' meter — extreme readings often snap back.
- MACD
- Shows whether short-term momentum is speeding up or slowing down vs. the longer trend. Crossing up = momentum building. Crossing down = momentum fading.
- Bollinger Band
- An envelope drawn around the price showing its 'normal' range. Price touching the lower band often means it's stretched too low; the upper band means stretched too high.
- Band position
- Where today's price sits inside that 'normal' range. 0% = at the lower band (stretched down). 100% = at the upper band (stretched up).
- EMA
- A smooth line over the price that gives more weight to recent days. Used to see the trend without all the daily noise.
- SMA
- A plain average of the last N closing prices. The classic 'trend' line.
- VWAP
- The 'average price' weighted by trading volume. Pros use it to judge if today's price is a good or bad deal vs. where most volume traded.
- ATR
- How much this stock typically moves up or down each day in dollars. Higher ATR = wilder swings.
- Put/Call volume
- Today's put option volume divided by call volume. Above 1.0 = more bearish bets being placed; below 1.0 = more bullish bets.
- Implied volatility (IV)
- The market's bet on how much the stock will move. High IV = a big event (like earnings) is expected. Low IV = traders expect quiet.
- Volume vs. average
- Today's trading volume divided by the 20-day average. Above 1.5× means unusual interest — something is driving attention to this stock.
- ADX
- A 0–100 reading of how strong the trend is (in either direction). Above 25 = real trend underway; below 20 = choppy/sideways.
Core concepts
- Support
- A price level where buyers have stepped in before. Like a floor — price often bounces off it.
- Resistance
- A price level where sellers have stepped in before. Like a ceiling — price often stalls there.
- Swing low
- The lowest price in a recent window (often the last 30 days). The 'bottom' of the current down move.
- Swing high
- The highest price in a recent window. The peak of the current up move.
- Oversold
- The stock has fallen so fast that a short-term bounce is statistically likely. Not a guarantee — just a tilt of the odds.
- Overbought
- The stock has climbed so fast that a short-term pullback is statistically likely.
- Exhaustion
- When a move has run so far that buyers (or sellers) run out of steam. Often precedes a reversal.
- Pre-market
- Trading from 4:00am to 9:30am ET, before the regular market opens. Lower volume and bigger price swings.
- After-hours
- Trading from 4:00pm to 8:00pm ET, after the regular close. Often where earnings reactions happen.
- Confidence
- How many signals line up in the same direction for this setup. Higher = stronger evidence.
- Zone
- Where this stock is in its lifecycle — early in the move, mid-move, late, or already at the top zone.
- Win rate
- Of your closed trades, the percentage that finished green. Higher is better, but a small sample can be misleading — give it at least 20+ trades.
- Avg return
- The average gain/loss across your closed trades, in percent. A healthy swing trader usually targets 5–15% per winning trade.
- Realized P&L
- Profit or loss you've actually locked in by closing trades. This is the real money on the scoreboard.
- Unrealized P&L
- Paper profit/loss on trades you still hold open — it moves with the market until you sell.
- Hit rate
- How often our picks finished in the green. We exclude same-day picks (no chance to play out yet).
- Analyst consensus
- The average rating from Wall Street analysts (Strong Buy → Sell). Useful as one data point — analysts are often late to turning points.
- Volatility
- How wild the stock's price swings are, in percent. Higher = bigger daily moves, both up and down — size positions smaller.
Signals
- Volume capitulation
- A panic spike in trading volume — usually means the last sellers are giving up, which often marks a bottom.
- Bullish divergence
- Price made a new low, but the momentum meter didn't. A quiet sign the selling is losing strength.
- Bearish divergence
- Price made a new high, but the momentum meter didn't. A quiet sign the buying is losing strength.
- Insider activity
- Buying or selling by company executives and directors in the last 90 days. Heavy insider buying is often bullish; heavy selling is mixed (can be tax/diversification).
Actions
- Invalidation level
- The price that would prove our buy idea wrong. If the stock breaks below it, the setup is over and we exit.
- Trim
- Sell part (not all) of your position to lock in some profit while letting the rest run.
Feel like trying this on a real stock?
Show me what's interesting today