Affimerce Indicators: Technical Score

Affimerce Technical Score is a multi-factor technical dashboard that summarizes a stock’s current technical condition across four major dimensions: Trend, Momentum, Extreme Level, and Turnover Percentile.

It focuses on technical structure, momentum, extension risk, turnover, and potential setup classification. This is different from fundamental scoring models that focus on business quality and valuation.

The goal of this indicator is not to generate a simple buy or sell signal. Instead, it helps users quickly understand the market environment, identify potential technical setups, and avoid reading one indicator in isolation.

How to use this indicator?

The dashboard summarizes the current technical condition using several high-level components.

The dashboard displays five rows: Trend, Momentum, Extreme Level, Turnover, and Potential Setup.

• Trend Score measures the quality of the current trend using price structure, moving-average behavior, trend alignment, and position within the broader price range.
• Momentum Score evaluates current momentum using price action, volume behavior, and relative performance against a selected benchmark.
• Extreme Level shows whether a stock is statistically extended or oversold compared with its own historical behavior.
• Turnover evaluates recent trading activity relative to the stock’s share base and compares it with the stock’s own historical turnover behavior.
• Potential Setup combines trend, momentum, extreme level, turnover, and recent score changes into a readable setup label.

The details of those indicators are listed below:

Trend

It measures the stock’s current technical structure using trend direction, price structure, moving-average behavior, and broader price-position context. It ranges from -100 to +100:

• 80% or higher: Strong Uptrend
• 50% to 79.9%: Medium Uptrend
• 20% to 49.9%: Weak Uptrend
• -19.9% to 19.9%: Sideways
• -20% to -49.9%: Weak Downtrend
• -50% to -79.9%: Medium Downtrend
• -80% or lower: Strong Downtrend

A higher Trend Score means the stock has stronger technical structure. A lower Trend Score indicates a weaker or bearish trend structure.

Momentum

It evaluates the strength and quality of current momentum using price action, volume behavior, and relative performance against a selected benchmark.

It ranges from 0 to 100:

• 80% or higher: Strong Momentum
• 60% to 79.9%: Healthy Momentum
• 40% to 59.9%: Neutral Momentum
• 20% to 39.9%: Weak Momentum
• Below 20%: Negative Momentum

A higher Momentum Score means the stock has stronger price action, better volume confirmation, and stronger relative performance versus the benchmark.

Extreme Level

It measures whether the stock is statistically extended or oversold compared with its own historical behavior. It ranges from -100 to +100:

• 85% or higher: Extreme Overbought
• 65% to 84.9%: High Overbought
• 45% to 64.9%: Elevated Overbought
• -44.9% to 44.9%: Normal
• -45% to -64.9%: Elevated Oversold
• -65% to -84.9%: High Oversold
• -85% or lower: Extreme Oversold

Extreme Level is mainly used to identify when a stock may be stretched too far in either direction. It is not a standalone reversal signal.

Turnover

It evaluates recent trading activity relative to the stock’s share base and compares the result against the stock’s own historical turnover behavior.

By default, the rolling period is 252 daily bars, which is approximately one trading year.

The Shares Base can be either:

• Float shares, if “Use Float Shares” is enabled.
• Total shares outstanding, if “Use Float Shares” is disabled.

The dashboard compares the current Rolling Turnover against the stock’s own historical Rolling Turnover levels.

Turnover categories are based on historical percentile:

• 97% or higher: Extreme Turnover
• 90% to 96.9%: Heavy Turnover
• 75% to 89.9%: High Turnover
• 50% to 74.9%: Elevated Turnover
• Below 50%: Normal Turnover

High Turnover means recent trading activity is unusually high relative to the stock’s history.

It can confirm strong participation, but it can also appear during distribution, panic selling, or crowded conditions. It should be read together with Trend, Momentum, and Extreme Level.

Potential Setup

Potential Setup is a summary label based on the combination of Trend, Momentum, Extreme Level, and recent score changes.

The setup engine evaluates conditions such as:

• Whether Trend is bullish, neutral, or bearish.
• Whether Momentum is strong, neutral, weak, improving, or weakening.
• Whether Extreme Level is normal, overbought, or oversold.
• Whether recent Trend, Momentum, or Extreme readings are improving compared with the recent lookback period.

The default recent change lookback is 5 days.

Examples of Potential Setup labels include:

• Relative Strength Leader: Strong trend and strong momentum without extreme overbought conditions.
• Strong Trend Setup: Positive trend and healthy momentum while Extreme Level is still not too stretched.
• Pullback / Re-entry: Strong trend with improving momentum after a controlled pullback.
• Breakout Developing: Trend is improving, and momentum is strong.
• Bullish Reversal Developing: Trend and momentum are beginning to improve from a weaker or oversold condition.
• Strong but Extended: Trend and momentum are strong, but the stock is becoming extended.
• Avoid Chasing: Trend and momentum are strong, but the Extreme Level is very high.
• Blow-Off Risk: Trend, momentum, and overbought extension are all extremely high.
• Weakening Uptrend: Trend is still positive, but momentum has weakened.
• Falling Knife: Trend is bearish, momentum is weak, and the stock remains deeply oversold without recovery.
• Sideways Compression: Trend is neutral, Extreme Level is normal, and momentum is starting to improve.
• Sideways / No Edge: Trend and momentum are neutral, and there is no clear directional setup.

Potential Setup is designed to describe the current technical environment. It should not be treated as a direct buy or sell signal.

Users can use this indicator to:

• Quickly evaluate a stock’s technical structure.
• Compare trend strength and momentum quality.
• Identify when a strong stock may be extended.
• Watch for pullbacks, breakouts, reversals, or weakening conditions.
• Use turnover as confirmation of market participation.
• Avoid relying on a single indicator such as RSI, moving averages, or volume alone.

How to customize the setups?

Technical Score includes practical display and model settings so users can adjust the dashboard to fit their chart layout and research workflow.

Historical Lookback Years (Default: 5)

This controls how many years of history are used to evaluate historical percentiles for Extreme Level and Turnover. A longer lookback makes the model more stable. A shorter lookback makes it more sensitive.

Momentum: Compare Momentum Against (Default: SPY)

This benchmark is used to calculate relative momentum. Users can change it to another benchmark such as QQQ, IWM, or a sector ETF.

Turnover: Use Float Shares (Default: On)

When enabled, turnover is calculated using float shares. When disabled, total shares outstanding are used. Float shares usually provide a better view of tradable supply.

Turnover: Rolling Period Days (Default: 252)

This controls the rolling daily volume window used to calculate turnover. 252 daily bars is approximately one trading year.

Setup: Recent Change Lookback Days (Default: 5)

This controls how many days back the model compares recent score changes. It is used to judge whether Trend, Momentum, or Extreme Level is improving or weakening. The default 5 days is designed to capture recent weekly change.

Price

Your subscription includes Opportunity Score, Opportunity Plot, Technical Score, and all future Affimerce indicators.

Important notes

Technical Score is provided for educational and research purposes only. It is not financial advice, investment advice, trading advice, or a guarantee of future performance.

The indicator does not provide Pine Script source code. Access is granted through TradingView invite-only permissions after purchase.