Every metric on your TradeAlertsAI dashboard is designed to give you an edge. This guide explains each component so you can make informed, confident decisions.
The TradeAlertsAI Score is the single most important number on your dashboard. It distills 8 technical factors into a unified reading from 1 (extreme bearish) to 10 (extreme bullish), telling you at a glance whether a stock is set up for upside or downside.
Each factor contributes between -2 and +2 points to a raw total that ranges from -18 to +18, which is then mapped to the 1-10 display scale.
Scores of 8-10 represent the highest-conviction bullish setups where multiple factors align. Scores of 1-2 are extreme bearish readings where nearly every factor is negative. The middle range (5-6) indicates mixed or transitioning signals -- proceed with caution or wait for clarity.
The Mode combines the weekly and daily BX-Trender states to produce a single positioning label. It tells you how aggressive or defensive your stance should be, directly influencing position sizing.
How it works: The BX-Trender classifies price action into swing highs and swing lows. Higher highs and higher lows = uptrend; lower highs and lower lows = downtrend. The Mode merges the weekly and daily readings so you always size positions according to the dominant trend.
Your dashboard shows 5 indicator cards, each providing a focused view of a different technical dimension. Together, they paint a complete picture of price action, momentum, and trend health.
The Exponential Moving Average stack tracks the alignment of the 9, 13, and 21-period EMAs. When 9 > 13 > 21, the stack is bullish -- short-term momentum leads and the trend is healthy. When the order inverts (21 > 13 > 9), the stack is bearish. A mixed or tangled stack signals indecision.
Bollinger Bands plot a 20-period SMA with upper and lower bands at 2 standard deviations. When price is near the upper band, the stock may be overbought and due for a pullback. Near the lower band, it may be oversold and ripe for a bounce. A squeeze (narrowing bands) often precedes a large move.
The Relative Strength Index measures momentum on a 0-100 scale. Readings above 70 are overbought; below 30 are oversold. The most powerful signals come from RSI divergences -- when price makes a new high but RSI does not (bearish divergence), or price makes a new low but RSI does not (bullish divergence).
Moving Average Convergence Divergence tracks the relationship between the 12 and 26-period EMAs. A bullish crossover occurs when the MACD line crosses above the signal line. A bearish crossover is the opposite. The histogram shows the distance between the two lines -- growing bars mean momentum is building.
The BX-Trender classifies price structure using swing highs and swing lows. HH/HL (higher highs, higher lows) = uptrend. LH/LL (lower highs, lower lows) = downtrend. This is the backbone of the Score and Mode calculations, providing the trend context that other indicators measure against.
Key Levels are calculated from a combination of support/resistance analysis, EMA values, and options walls (call wall and put wall from the options chain). They give you precise price targets and risk boundaries.
Slow Zone: Calculated as EMA21 multiplied by 0.98, this is the caution threshold. When price trades below the Slow Zone, momentum has deteriorated significantly. Exercise extreme caution with new long entries below this level.
Targets (T1-T4) serve as take-profit levels where you should consider trimming positions. Supports (S1-S3) serve as floors -- losing S2 is typically the stop-loss trigger. Options walls (call wall = resistance, put wall = support) are factored in to make these levels responsive to real institutional positioning.
TradeAlertsAI uses a staged exit system designed to lock in profits incrementally while letting winners run. This approach was validated through an extensive backtest.
| Stage | Action | Size |
|---|---|---|
| T1 Hit | Trim first portion, move stop to breakeven | 33% |
| T2 Hit | Trim second portion, trail stop higher | 33% |
| T3 Hit | Close remaining position | 34% |
| Stop | Exit at S2 support level | All remaining |
| Max Hold | Exit after 20 trading days if no target hit | All remaining |
After T1 is hit, the trailing stop moves to breakeven -- eliminating downside risk on the remaining position. This "free trade" dynamic is why staged exits outperform simple hold-and-hope strategies.
Tested across 50 tickers from 2022 to 2025, covering 5,278 trades:
For comparison, a simple hold strategy on the same signals produced only a 53.4% win rate and a -0.07% average return. The staged exit approach turned a breakeven system into a high-performance strategy with a 67% base win rate that climbed to 86.2% after optimization.
Every dashboard report includes three forward-looking scenarios -- Bull, Base, and Bear -- each with a probability weight, trigger condition, target, and recommended action. The probability distribution shifts based on the overall Score.
| Score Range | Bull | Base | Bear |
|---|---|---|---|
| 7-10 (Bullish) | 55% | 30% | 15% |
| 4-6 (Neutral) | 25% | 50% | 25% |
| 1-3 (Bearish) | 15% | 30% | 55% |
The optimistic case. Includes the specific trigger that would confirm the bullish move (e.g., "break above T1 with volume"), the upside target (typically T3 or T4), and the recommended action (e.g., "full position, trail to breakeven at T1").
The most likely case -- range-bound or moderate movement. Includes the expected trading range, key levels to watch, and a conservative action plan (e.g., "half position, trim at T1, tight stop at S1").
The risk case. Identifies the breakdown trigger (e.g., "lose S1 support on heavy volume"), the downside target (typically S2 or S3), and the defensive action (e.g., "exit longs, consider puts below S2").
TradeAlertsAI uses a ResNet18 neural network with CBAM attention to detect chart patterns directly from candlestick images. Unlike rule-based systems, the CNN learns visual features from thousands of labeled charts, catching patterns that simple math would miss.
The model runs a sliding window inference across multiple bar windows -- [7, 9, 11, 13, 15] bars -- to detect patterns at different scales. Each window is scored independently and the highest-confidence detection is surfaced on your dashboard with a confidence percentage from 0-100%.
Why CNN matters: In backtesting, traditional TA indicators had a 0% detection rate on bearish moves, while CNN pattern detection caught all 22 bearish setups in the test set. Pattern recognition adds a critical dimension that indicators alone cannot provide.
The Options Play card only appears for extreme score readings -- scores of 9-10 or 1-2. This ensures options recommendations are reserved for the highest-conviction setups where the risk/reward is most favorable.
| Score | Direction | Strike | Delta | Expiry |
|---|---|---|---|---|
| 9-10 | CALL | Slightly OTM (1.02x current price) | 0.40 - 0.50 | 2-4 weeks out |
| 1-2 | PUT | Slightly OTM (0.98x current price) | 0.40 - 0.50 | 2-4 weeks out |
Important: Options carry significant risk. The Options Play is a tool for experienced traders. Never risk more than you can afford to lose, and always check the bid-ask spread and volume before entering.
The Options Flow section analyzes the live options chain to surface institutional positioning and unusual activity. This data reveals where large players expect the stock to move.
The strike with the highest call open interest near the money. Acts as a magnetic resistance level -- market makers hedging these calls create selling pressure as price approaches. The stock often stalls or reverses at the call wall.
The strike with the highest put open interest near the money. Functions as a support floor -- put sellers will defend this level. Price tends to find a floor at or near the put wall.
The strike with the highest combined open interest (calls + puts). This is the "gravity" strike where market maker hedging activity is most intense. Price tends to gravitate toward this level, especially into expiration.
The ratio of total put volume to call volume. A ratio above 1.0 means more puts are trading (bearish sentiment). Below 0.7 indicates bullish sentiment. Extreme readings can be contrarian signals.
Compares the implied volatility of puts vs. calls (put IV / call IV). A skew above 1.0 means puts are more expensive, indicating hedging demand or fear. Below 1.0 suggests complacency or bullish speculation.
Flagged when options volume exceeds 5x the open interest at a given strike. This is a strong signal that someone is opening a large new position. Unusual activity on calls is bullish; on puts is bearish. Pay close attention to the expiration date and strike price for clues about the expected move.
No stock trades in a vacuum. The Macro Context bar at the bottom of your dashboard shows the key macro factors that affect all equities. Even a perfect technical setup can be derailed by an adverse macro environment.
Rising yields are a headwind for growth stocks because they increase the discount rate on future earnings. When the 10Y is climbing, high-multiple tech and growth names face valuation pressure. Falling yields are a tailwind.
The market's "fear gauge." A VIX above 25 signals elevated fear -- expect wider swings and possible capitulation. Above 20 is cautionary. Below 15 is calm. Spikes in VIX often coincide with market bottoms, making them contrarian buy signals for the brave.
Tracks whether the S&P 500 (SPY) and Nasdaq 100 (QQQ) are trading above or below their 20-day SMA. Above = market tailwind (the tide lifts all boats). Below = market headwind (even strong stocks struggle when the index is sinking).
Surfaces the next major economic event -- FOMC rate decisions, CPI inflation data, Jobs Reports, and more. These events can cause sudden volatility. It is often wise to reduce position size ahead of major announcements or at least set tighter stops.
Pro tip: When macro factors flash headwinds (rising yields, VIX > 20, SPY below SMA20), even high-score stocks should be traded with reduced position sizes. The Macro Context bar helps you calibrate risk in real time.