Research & signal quality
How atradeaday trading signals and confidence work
See how atradeaday combines chart patterns, volume, trend, and indicators, and why technical confidence is not a verified probability of profit.
By atradeaday · Published
atradeaday organizes chart evidence into a market-research workflow. It combines local technical calculations with optional AI-assisted interpretation. The goal is to make the evidence, plan, and invalidation easier to inspect. That does not make every setup tradeable or profitable.
What the technical engine combines
The current version-one technical confidence calculation uses four weighted components:
- Pattern confidence: 35%.
- Volume confirmation: 20%.
- Trend alignment: 20%.
- Indicator confluence: 25%.
The local engine uses EMA, RSI, and MACD-derived data in its confidence calculation. Pattern-derived levels inform the trade plan. These are implementation choices in the current engine, not empirically established universal weights or a claim about future profitability.
The technical engine and AI-generated analysis are separate outputs. Do not assume an AI explanation uses exactly the same numerical method or has independently verified the underlying setup.
Why the score is not a win rate
Imagine four hypothetical component readings of 0.8, 0.5, 0.7, and 0.6. Applying the weights yields 0.35 × 0.8 + 0.20 × 0.5 + 0.20 × 0.7 + 0.25 × 0.6 = 0.67. The number summarizes those components. It does not demonstrate a 67% chance of reaching a target.
To make a probability claim, an evaluation would need a fixed outcome definition, timestamped signals, later observed results, adequate samples, and calibration on data not used to tune the model. This page does not claim that such an independent performance audit has been completed.
Data limitations affect interpretation
Some feeds do not provide meaningful traded volume. The current technical scoring code applies fallback values in insufficient-history or unavailable-volume cases. A populated score therefore does not guarantee that every component represents observed market confirmation. Review the instrument and data source as well as the number.
Short history, unfinished candles, feed differences, and volatile conditions can change detected patterns and levels. AI explanations can contain mistakes or overstate the importance of a feature. Check the visible prices and context before treating an explanation as evidence.
A practical review sequence
- Confirm the instrument, venue, timeframe, and freshness of the chart.
- Inspect the detected structure and the nearest opposing level.
- Separate observed indicator readings from the AI's interpretation.
- Check entry, target, invalidation, and expected execution costs.
- Size any hypothetical position from the acceptable loss, not the confidence score.
- Record the original signal and eventual outcome, including failures and non-trades.
Use the field notes for tool explanations and the analysis desk to inspect current chart evidence. For outcome assessment, read how to evaluate trading signals. Questions or corrections can be sent through support.