Based on Signal’s proprietary Technical Analysis, the Technical Standouts report identifies on a weekly basis the top and bottom names in each sector based on probability weighted expected returns. Signal’s technical analysis is based on a proprietary methodology developed, tested and refined over 30 years. The analysis includes both Technical Trend Classification and Statistical Pattern Recognition.
Signal classifies each stock into one of nine technical patterns in terms of both daily and weekly charts. Signal presents how those classifications have changed over the last eight trading days (dailies) and on the last three Fridays (weeklies). Statistical Pattern Recognition is employed to identify situations where a specific combination of technical indicators provides statistically significant indications of future stock performance.
Clients use Signal’s Technical signals in a variety of ways. Some high-turnover clients utilize them for short-term idea generation. More typically, clients use them as a risk management tool (helping to inform position size changes) and to assist with position entry/exit timing.