Scoring Methodology
This document explains in detail how Cash Machine Scanner builds the 0-100 technical score assigned to each ticker. It covers both scoring modes (Momentum and Phoenix), the five signal families, the confluence principle, available presets and the limitations of the approach. For term definitions, see the glossary.
Score overview
Each ticker in the Cash Scanner universe receives a score between 0 and 100, bounded by design. This score aggregates dozens of binary (present/absent) and continuous (numerical value) signals spread across five families: trend, momentum, volatility, volume and divergences.
The weight of each signal depends on the active mode (Momentum or Phoenix), determined by the preset selected by the user. The score does not predict a future price: it measures the density of technical confluence at a given point in time. A high score means that several independent indicators converge simultaneously in the same direction.
The score is recalculated every day after market close, using the most recent OHLCV (Open, High, Low, Close, Volume) data. Scores displayed on the dashboard in the morning reflect the previous day's closing prices for European markets, and the same day's close for US markets (time zone offset).
Score range interpretation
| Range | Interpretation | Suggested action |
|---|---|---|
| 0 - 29 | Few or no positive technical signals. The stock is neglected, in a marked downtrend, or range-bound without conviction. | No action. Wait for a structural change. |
| 30 - 49 | Some signals appear but without strong convergence. Mixed situation: some indicators positive, others negative. | Monitor. Add to watchlist if fundamentals are interesting. |
| 50 - 69 | Clear and converging positive signals. Multiple indicators (3+) point in the same direction. The setup warrants deeper analysis. | Analyze the stock (chart, news, sector). Evaluate risk/reward ratio. |
| 70 - 100 | Strong signal confluence. Confirmed momentum, volume present, indicators aligned. Priority opportunity, but mind the timing. | Priority analysis. Check macro context and liquidity before any decision. |
Important: a score of 85 does not mean the stock will rise 85%. It means 85% of the technical confluence capacity is reached. The score is a sorting tool, not a performance guarantee.
Two scoring modes
Cash Scanner offers two complementary scoring profiles, each optimized for a different market type. The mode is selected automatically via the chosen preset.
M Momentum Mode
Momentum mode favors established trends. It applies stricter thresholds on trend confirmation (ADX > 25, moving average crossovers) and penalizes excessive volatility more heavily. Ideal when the market is clearly trending up or down.
- Favored signals: breakout on volume, high ADX, bullish MACD, RSI > 50 accelerating, rising OBV
- Penalized signals: RSI > 80 (extreme overbought), bearish divergences, abnormal volatility
- Associated presets: default, aggressive, conservative, large_cap
- Use case: confirmed bull market, positive sector rotation, post-earnings momentum
P Phoenix Mode
Phoenix mode is designed to capture early reversals. It relaxes trend thresholds and grants bonuses for bullish divergences, oversold recoveries and capitulation signals. Ideal when the market is range-bound (ADX < 20) or you are looking for recovery plays.
- Favored signals: RSI/MACD/Stochastic divergences, RSI exiting oversold (< 30 → rising), support touched, Bollinger squeeze
- Penalized signals: complete absence of volume, downtrend with no exhaustion sign
- Associated presets: phoenix, small_cap, mid_cap
- Use case: range-bound market, correction after excess, recovery plays, neglected small caps
Both scores (M and P) are always calculated simultaneously for each ticker. The M and P badges displayed on each opportunity card let you compare both readings.
Five signal families
The score aggregates signals spread across five families. Each family covers a different aspect of a stock's technical behavior. Using independent families is essential for confluence: two signals from the same family (e.g., RSI + Stochastic) are correlated and count less than a trend signal + a volume signal.
1. Trend
Measures the direction and strength of price movement.
- ADX — trend strength (directional vs range). ADX Guide
- Moving averages — price position vs SMA 20/50/200, crossovers (golden cross / death cross)
- Vortex — VI+/VI- crossover to confirm trend start. Vortex Guide
- Structure — higher highs / higher lows (uptrend) vs lower highs / lower lows (downtrend)
2. Momentum
Measures the speed and acceleration of price movement.
- RSI — relative strength of gains vs losses, 30/70 thresholds. RSI Guide
- MACD — crossovers and histogram for timing. MACD Guide
- Stochastic — price position within its recent range. Stochastic Guide
- Williams %R — complementary oscillator. Williams %R Guide
- KST — multi-period momentum for underlying trends. KST Guide
3. Volatility & levels
Measures price variation amplitude and identifies critical zones.
- Bollinger Bands — squeeze, expansion, position within bands. Bollinger Guide
- ATR — average candle amplitude, used for stop-loss calculation
- Fibonacci — 38.2%/50%/61.8% retracement levels. Fibonacci Guide
- Support / Resistance — historical reaction zones. Support Guide
4. Volume
Measures conviction behind a price move.
- OBV — signed cumulative volume, trend confirmation. OBV Guide
- Volume spikes — abnormally high volume vs 20-day average ("Vol+" signal)
- Breakout confirmation — a breakout without volume is suspect; with volume, it's more reliable
5. Divergences
Detects disagreements between price and oscillators, signs of current trend exhaustion.
- RSI divergences — price makes a new low, RSI makes a higher low. Divergences Guide
- MACD divergences — same principle on the MACD histogram
- Stochastic / Williams %R divergences — additional confirmation
Note: divergences are weighted more heavily in Phoenix mode than in Momentum mode.
The confluence principle
Confluence is the fundamental concept behind Cash Scanner scoring. A single technical signal (for example, RSI < 30 alone) has limited predictive value. However, when three or more signals from different families converge simultaneously, the probability of a significant move increases substantially.
The scoring engine assigns progressive confluence bonuses:
- 2 signals — base score, no particular bonus
- 3 signals — confluence bonus, badge "≥3 signals" displayed on the opportunity
- 4+ signals — enhanced bonus, badge "≥4 signals". Priority setup
Signals are counted by family: two converging momentum indicators (RSI + Stochastic) count less than RSI (momentum) + ADX (trend) + OBV (volume), which cover three independent families. This source diversity is what makes confluence statistically more reliable.
Available presets
| Preset | Mode | Description |
|---|---|---|
| default | M | Balanced standard. Suitable for most markets and profiles. |
| aggressive | M | Raised thresholds (higher min score, stronger volume). For the most convincing setups only. |
| conservative | M | Lowered thresholds, stricter volatility filter. Favors stability and large caps. |
| large_cap | M | Market cap > $10B filter. Blue-chip stocks only. |
| phoenix | P | Early reversals. Divergence bonuses, relaxed ADX thresholds. |
| small_cap | P | Small caps in recovery. Lowered min score and ADX thresholds. |
| mid_cap | P | Mid caps in Phoenix mode. |
Universe and data quality
Cash Scanner analyzes approximately 4,300 tickers daily covering:
- Stocks — US (NYSE, Nasdaq), Europe (Euronext, Xetra, LSE), Asia-Pacific. Large caps and small caps.
- ETFs — Sector, geographic, bond and commodity ETFs.
- Cryptocurrencies — 25+ liquid cryptos (BTC, ETH, SOL, etc.).
The universe is rebuilt daily with strict quality filters:
- Completeness score > 0.45 — tickers with too much missing data are excluded
- History > 200 sessions — required for long moving averages (SMA 200)
- Price > $1 — penny stocks are excluded (excessive noise, manipulation risk)
Data sources: Yahoo Finance (OHLCV prices), Finnhub (metadata, ISIN), EODHD (supplementary data). Data is downloaded after each market close and indicators are recalculated overnight to be available the following morning.
Update frequency
The scoring pipeline runs every night (between 2am and 6am UTC) after the US market close. The full process takes approximately 45 minutes:
- Download OHLCV data for ~4,300 tickers
- Calculate 25+ technical indicators per ticker
- Apply scoring (Momentum and Phoenix) with confluence detection
- Generate opportunities and send Telegram alerts
The scores you see on the dashboard in the morning reflect previous day's closing prices. There is no intraday scoring: Cash Scanner is designed for a swing trading approach (days to weeks), not for day trading.
Important limitations
- Not a prediction — the score measures past technical confluence. It does not predict future movement. A score of 90 can be followed by a decline if the macro context changes.
- No fundamentals — scoring is purely technical. It does not account for earnings, news, management changes, or macroeconomic context.
- No personalized advice — the score does not know your risk profile, investment horizon, tax situation, or objectives. It is in no way personalized investment advice.
- Survivorship bias — backtests only show stocks that still exist. Delisted, bankrupt or acquired companies are absent from the historical data.
- Data quality — despite filters, source data (Yahoo Finance etc.) may contain occasional errors (unadjusted splits, aberrant volumes). These errors may temporarily affect the score.
- Illiquid markets — on low-volume small caps, technical signals are less reliable as a single large order can move the price.
This service provides information for informational purposes only. Past performance of a signal or score does not guarantee future results. Investing involves risk of capital loss.
Last updated: .