Glossary

Signal

The directional verdict — Buy Long-Term, Buy Short-Term, Hold, or Short — derived from the composite scores.

Definition

A signal is a discrete label applied to a stock based on its quantitative scores. Where the composite score is a 1–100 number, the signal is one of four strings — Buy Long-Term, Buy Short-Term, Hold, or Short — that maps the score onto a directional verdict.

Signals exist because raw scores are useful for ranking but not for action. Telling someone "this stock scored 73" requires them to know what 73 means. Telling them "Buy Long-Term, with high confidence" answers the question they actually have.

That said, a signal is not a recommendation. It's a structured opinion produced by a fixed model with no awareness of the user's portfolio, tax situation, or risk profile.

How QScoring uses it

The signal is derived from the long-term and short-term composites with a fixed rule set, evaluated in order. A Short signal triggers if either composite falls below 30. Buy Short-Term triggers when the short-term score is at least 65 and the momentum factor is at least 60. Buy Long-Term triggers when the long-term score is at least 70 — or above 60 and higher than the short-term score. Anything else is Hold. The full ordered rule list lives in the signals section of the methodology.

← Back to glossary