Technical Summary Scores

Technical Summary Score is a compact analytic offering the investor a directional summary for three timeframes: short-, medium-, and long-term. This is a unique offering by Trading Central that allows us to help investors make sense of all the various Technical Events that may be triggering all at once for a specific asset. It is particularly important for emerging compact applications where investors want a quick summary of what might be expected for the next few hours, days, weeks, months or years; before ultimately deciding to drill deeper and inspect the set of technical events that are currently active.

Technical Summary Score is based on a recency-weighted model applied to all currently active technical events.

End of day technical summary scores are available for all asset classes.

Trading Central has tested a variety of models to realize the technical analysis principle for seeking "weight of evidence". After comparing the outcome of various models with different focal points from simple counts to breakout strength; we have found that our recency-weighted model provides the best summary of the information.

Key Factors in this model utilize active events only and apply recency-weighted model on all timeframes. (see multipliers)

The model produces three technical opinions based on the sum of the active events which are each assigned a weighting; The weighting for each event is chosen based on recency of the event (please refer to the table) and direction of the event (bullish events are positive, bearish are negative)

The sum of weighted events provides the overall directional outlook:

• Bullish (sum is positive)
• Bearish (sum is negative)
• Neutral (sum is zero)

The sum also provides an overall weight of evidence.

“End of Day” model based on daily and weekly charts

*Note: All undefined events (e.g. gaps) are given a multiplier of 0.