Signals & Conviction Score
Signals are the core of SimpleAlgo V5. This page explains exactly when one fires, what the percentage next to it means, why some setups are skipped, and what the ✖ mark is telling you.
When a signal fires#
A BUY ▲ prints when all three are true on a confirmed (closed) bar:
- Price crosses above the adaptive trend line (an ATR-banded trend built on an 11-period Wilder ATR).
- Close is at or above the 13-period simple moving average — a short-term momentum agreement check.
- The market is trending: ADX(14) is at or above your Chop Filter threshold.
A SELL ▼ is the exact mirror: cross below the trend line, close at or below the 13 SMA, ADX above threshold.
The Conviction Score (0-100%)#
Toggle the four checks V5 runs on every signal. 25 points each.
Every signal is scored out of 100 using four independent 25-point checks. The score is printed on the label, e.g. ▲ BUY · 75% +. Anything at 75% or above earns the strong + mark.
| Setting | What it does | Default | Range | When to change it |
|---|---|---|---|---|
| Trend alignment (25) | For a BUY, close is above the 200 EMA. For a SELL, close is below it. | 25 pts | — | Trading with the bigger trend |
| Volume confirmation (25) | Current bar volume is above its 20-bar average. | 25 pts | — | Real participation behind the move |
| Momentum (25) | RSI(20) above 50 for a BUY, below 50 for a SELL. | 25 pts | — | Momentum agrees with direction |
| Structure bias (25) | The last market structure break (BOS / CHoCH) matches the signal direction. | 25 pts | — | Smart money structure agrees |
75-100% — everything lines up. These are the signals to size normally on.
50-74% — mixed. Take them only when the Dashboard says Trending and the setup fits your plan.
0-49% — counter-trend or unsupported. Most traders should skip these entirely.
Structure bias is computed even when Smart Money drawing is turned off, so the score is always complete.
The Chop Filter#
Directionless markets are where trend-following indicators bleed. The Chop Filter measures ADX(14) and blocks every signal while ADX is below your threshold (default 15). Raise it to be stricter — 20 to 25 means you will only ever be signalled inside a genuine trend, at the cost of missing early entries. Lower it toward 5-10 only if you specifically want more, weaker setups.
The Dashboard's Market row shows the live state and current ADX value, so you always know whether the filter is currently letting signals through.
Exit Flags (✖)#
An Exit Flag prints in the accent purple when momentum turns against a trade you are already in: on a long, price closes below the adaptive Gaussian (HMA) centerline; on a short, it closes above it. It is a warning, not a reversal signal — nothing new is being opened.
Common ways to trade it: close the remainder of the position, tighten your stop to breakeven, or ignore it if you are targeting the 3:1 level and your original stop is still valid.
Sensitivity modes#
| Setting | What it does | Default | Range | When to change it |
|---|---|---|---|---|
| Swing Trader | Widest trend bands (factor 5.0) — fewest, highest-quality signals. | Default | 1H - 1D+ | Swing trading, position trading |
| Day Trader | Medium bands (factor 2.5) — balanced frequency. | — | 15m - 4H | Intraday trend trading |
| Scalper | Tightest bands (factor 2.0) plus a faster internal centerline — fast and frequent. | — | 1m - 15m | Scalping only, with tight stops |
Signal settings reference#
| Setting | What it does | Default | Range | When to change it |
|---|---|---|---|---|
| Sensitivity | How often signals fire | Swing Trader | Swing / Day / Scalper | Match to your timeframe |
| Chop Filter | Skips signals in directionless markets | On | 5 - 40 (ADX) | Raise for stricter trend-only trading |
| Conviction Score | Rates every signal 0-100% | On | — | Turn off only for a cleaner chart |
| Signal Labels | Shows the BUY ▲ / SELL ▼ marks | On | — | Turn off if you only use alerts |
| Exit Flags | Prints ✖ when momentum turns against an active trade | On | — | Turn off if you manage exits purely by TP/SL |
Next: see how the visual layers give you context around each signal in Chart Overlays.