This glossary gathers the definitions of technical indicators, scoring concepts and stock market terms used in Cash Machine Scanner. Each definition includes a practical example and, when available, a link to the corresponding detailed guide. For an overview of the scoring method, see the methodology page.
Oscillator ranging from 0 to 100 measuring the relative strength of gains vs losses over ~14 periods. Below 30 the stock is considered oversold, above 70 overbought.
In practice: an RSI < 30 on a solid stock near a support level is a potential bounce signal. Cash Scanner also detects RSI divergences (price falling, RSI rising).
Full RSI guide →Difference between the 12-period exponential moving average (EMA 12) and the EMA 26, with a signal line (EMA 9). Crossovers of the MACD line with the signal line and the histogram indicate momentum shifts and potential reversals.
In practice: a bullish crossover (MACD crosses above the signal) confirms accelerating momentum. More reliable when combined with volume.
Full MACD guide →Compares the closing price to the high-low range over N periods (%K and %D). Useful for detecting oversold zones (< 20) and overbought zones (> 80), as well as divergences.
In practice: a %K/%D crossover in the oversold zone, especially in confluence with a low RSI and a support level, increases the probability of a bounce.
Full Stochastic guide →Oscillator ranging from -100 to 0, similar to an inverted stochastic. Below -80 the stock is oversold, above -20 overbought.
In practice: used alongside the stochastic to confirm extremes. Cash Scanner combines it in its confluence detection.
Full Williams %R guide →Oscillator combining several smoothed rate-of-change (ROC) values at different periods to detect medium-term momentum shifts. A KST/signal crossover indicates a turning point.
In practice: KST is slower than MACD but filters out noise better. Useful for confirming an underlying trend over several weeks.
Full KST guide →Cumulative volume signed by price direction: +volume on up days, -volume on down days. Confirms trends when price and OBV move together.
In practice: if price rises but OBV stalls or falls, the rally lacks conviction (bearish divergence). Cash Scanner uses OBV to weight breakout signals.
Full OBV guide →Measures trend strength (not direction), on a scale from 0 to 100. An ADX above 25 indicates a trending market; an ADX below 20 indicates a trendless market.
In practice: ADX determines which scoring mode to use. High ADX → Momentum mode (follow the trend). Low ADX → Phoenix mode (look for reversals).
Full ADX guide →SMA (Simple Moving Average): arithmetic average of the last N closing prices. EMA (Exponential Moving Average): a variant that gives more weight to recent prices, making it more responsive.
In practice: SMA 50/200 crossovers (golden cross, death cross) are major trend signals. Cash Scanner uses the distance to SMA 20 and SMA 200 in its scoring.
Measures positive directional movement (VI+) vs negative (VI-). A VI+ crossover above VI- is a bullish signal; the opposite is bearish.
In practice: the Vortex is particularly useful for confirming the start of a new trend after a ranging period.
Full Vortex guide →A middle band (SMA 20) surrounded by two bands at +/- 2 standard deviations. Price near the lower band indicates a potential bounce; a squeeze (narrowing bands) signals low volatility before expansion.
In practice: a Bollinger squeeze breakout is one of Cash Scanner's most reliable signals for anticipating a price acceleration in the following days.
Full Bollinger guide →ATR measures the average candle range (spread between high and low) over N periods. The higher the ATR, the more volatile the stock.
In practice: Cash Scanner uses ATR to calculate stop-loss levels and price targets (risk/reward ratio). An excessively high ATR may signal excessive risk.
Key levels at 23.6%, 38.2%, 50% and 61.8% plotted on a swing to identify potential support and resistance zones.
In practice: a 50-61.8% retracement in a healthy uptrend is often an attractive entry point, especially if RSI confirms an oversold condition.
Full Fibonacci guide →Price zones where buyers (support) or sellers (resistance) have historically reacted significantly. Breaking through a support or resistance indicates a change in market structure.
In practice: Cash Scanner detects dynamic supports (SMA 200, lower Bollinger band) and static ones (20/50-session lows) to generate "Support" and "Breakout" signals.
Full Support guide →Number of shares traded over a given period. Volume confirms the conviction behind a price move: a breakout on high volume is far more meaningful than one on low volume.
In practice: Cash Scanner's "Vol+" signal triggers when volume significantly exceeds the 20-day average, indicating potential institutional interest.
The ease of buying or selling a stock without significantly impacting its price. Depends on average volume and the bid-ask spread.
In practice: Cash Scanner presets include a min_avg_volume filter to exclude illiquid stocks, where technical signals are less reliable.
A situation where the price makes a new low while the oscillator (RSI, MACD, etc.) makes a higher low. This disagreement signals exhaustion of selling pressure and a potential bullish reversal.
In practice: divergences are the most powerful signal in Phoenix mode. Cash Scanner automatically detects them on RSI, MACD, Stochastic and Williams %R.
Full Divergences guide →Breaking through a key level (resistance, consolidation channel, N-session high) accompanied by volume. A valid breakout signals the potential start of a significant directional move.
In practice: Cash Scanner generates a "Breakout" signal when the price exceeds the 20-session high with above-average volume. This is the key signal in Momentum mode.
A condition where an asset has fallen (oversold) or risen (overbought) excessively in the short term according to an oscillator (RSI, Stochastic, Williams %R). An oversold stock may precede a bounce, but this is not guaranteed.
In practice: Cash Scanner displays a "Warning" signal when the Stochastic exceeds 85 (overbought). Oversold conditions are valued in Phoenix mode to capture early reversals.
An automatic sell order placed below the purchase price to limit the loss in case of an adverse move. Stop placement depends on volatility (ATR) and technical structure (support).
In practice: Cash Scanner calculates an ATR-based stop for the risk/reward ratio (R/R). A stop set too tight will be hit by noise; a stop set too wide exposes you to excessive loss.
The ratio between the potential loss (distance to stop-loss) and the potential gain (distance to target). An R/R of 2:1 means the targeted gain is twice the accepted risk.
In practice: Cash Scanner displays an "R/R" signal when the ratio reaches at least 2:1, with an ATR-based stop and a target at 2-3.5x ATR. An essential criterion for investment discipline.
Weighted synthesis of 25+ technical signals per ticker. The score is used to prioritize stocks for analysis, not to predict a price. The higher it is, the more signals converge positively.
In practice: a score of 70+ indicates strong signal confluence. A score of 30-50 indicates mixed signals. See the full methodology.
Alignment of 3 or more technical signals pointing in the same direction simultaneously. Statistically more reliable than a single signal.
In practice: Cash Scanner displays badges for "3+ signals" and "4+ signals" on opportunities. This is the core principle of the scoring: a single signal (RSI alone) has little value, but 4 concordant signals deserve attention.
Scoring profile that favors confirmed trends, breakouts and high ADX. Ideal for trending markets. Associated presets: default, aggressive, conservative, large_cap.
In practice: use Momentum mode when the market has a clear direction (up or down). Weightings favor trend indicators (ADX, MACD) and volume confirmations.
Scoring profile designed to capture early reversals: bullish divergences, oversold exits, trendless markets (low ADX). Presets: phoenix, small_cap, mid_cap.
In practice: use Phoenix mode when the market stagnates or you are looking for recovering stocks. RSI/MACD divergences are heavily weighted.
A predetermined configuration combining a scoring mode, liquidity filters, capitalization and volatility filters to launch a targeted scan. Examples: default, phoenix, aggressive, small_cap, conservative.
In practice: each preset is optimized for an investment style. "Aggressive" raises the thresholds, "conservative" lowers them, "small_cap" targets small-cap stocks.
Automatic filtering of a large universe of stocks to retain only those matching specific technical criteria. Cash Scanner scans ~4,300 tickers daily.
In practice: the daily automatic screening eliminates the need to manually review thousands of stocks. You only see opportunities that match your preset.
A personal list of tickers to monitor. Allows you to track score changes and receive alerts when price or score thresholds are crossed.
In practice: add a ticker to your watchlist from the analysis page. Connect Telegram to receive real-time alerts.
A retrospective test of a strategy on historical data. Allows you to evaluate how an approach would have performed in the past, with the biases and limitations that implies.
In practice: Cash Scanner offers a backtest module. Caution: past performance never guarantees future results (survivorship bias, overfitting).
A stock exchange code identifying an asset on a market (e.g. AAPL for Apple, BTC-USD for Bitcoin). It is the basic unit analyzed by the scanner.
In practice: type a ticker in the dashboard search bar to directly access its detailed analysis.
Open, High, Low, Close, Volume — the standard structure of a candlestick. This is the raw data on which all technical calculations are performed.
In practice: Cash Scanner downloads daily OHLCV data for each ticker in the universe, then calculates the 25+ technical indicators.
An exchange-listed index fund holding a basket of assets (index, sector, geography). Provides simple diversification. ETFs are included in the universe scanned by Cash Scanner (~4,300 tickers).
In practice: sector ETFs help spot market rotations. A technology ETF with a high Momentum score indicates an accelerating sector.
The market value of a company, calculated by multiplying the share price by the number of outstanding shares. The small_cap, mid_cap and large_cap presets target different segments of the universe.
In practice: small caps are more volatile but offer higher growth potential. Large caps are more stable. The preset determines the automatic filter.
The dominant price direction over a given period: bullish (higher highs, higher lows), bearish (lower highs, lower lows) or sideways (range). Trend indicators (ADX, moving averages) quantify it.
In practice: identifying the underlying trend is the first step. Cash Scanner automatically adjusts its scoring depending on whether the market is trending or not.
The maximum decline from a peak to a trough in the value of a portfolio or asset. Measures the magnitude of temporary losses suffered before a recovery.
In practice: drawdown is the most telling risk indicator. A -30% drawdown means you need a +43% gain to get back to the starting point.
The ratio of the share price to earnings per share. A high P/E may indicate strong growth expectations or overvaluation. Always compare it to the sector and historical averages.
In practice: Cash Scanner is a technical analysis tool (not fundamental), but the P/E ratio remains a useful benchmark to contextualize a high technical score.
The annual dividend relative to the share price, expressed as a percentage. A 4% yield means the company pays out 4% of its share price in dividends each year.
In practice: a high-dividend stock in a technical oversold condition can represent an opportunity in Phoenix mode, combining a potential bounce with regular income.
A measure of a stock's sensitivity relative to the overall market. A beta of 1.5 means the stock rises or falls on average 1.5 times more than the benchmark index.
In practice: high-beta stocks amplify market movements. Useful for calibrating position sizing and portfolio risk.
The distribution of a portfolio across different economic sectors (technology, healthcare, energy, financials, etc.). A diversified allocation reduces sector-specific risk.
In practice: Cash Scanner's portfolio module displays sector and geographic allocation to help you identify excessive concentrations.
The gain or loss realized when selling an asset, calculated as the difference between the selling price and the purchase price. As long as the stock is not sold, the gain or loss remains "unrealized".
In practice: Cash Scanner's portfolio module displays unrealized and realized P&L (profit and loss) for each position.
The difference between the best bid price and the best ask price. A narrow spread indicates good liquidity; a wide spread increases the implicit cost of each transaction.
In practice: illiquid stocks with wide spreads are filtered out by Cash Scanner presets via the minimum average volume threshold.
Last updated: . 42 terms defined.