FoudaLens Descriptive Signals: What They Mean and What They Do Not
Next to every stock on FoudaLens you will find a phrase like "Trend Continuation" or "No Signal". It describes the stock's technical state; it is not an order to follow. We will see when each signal appears, and what it does not say.
What you will learn
Know the four signals the engine issues today.
Understand the order in which the engine picks a signal.
Know the limits of a signal: what it does not say.
The engine identifies every technical state that applies to the stock, then applies a fixed priority order to reach its decision. Several states can hold at once, such as a strong trend with an overbought reading, but the higher-priority state decides. The same data always gives the same signal; nobody picks it by hand.
1Very high volatility?Negative Setup
2Thin liquidity?No Signal
3A strong, confirmed uptrend?Trend Continuation
4Moving sideways?No Signal
5A weak trend?Depends on momentum and RSI
Higher-priority states decide before lower ones.
The four signals
Trend ContinuationA strong, confirmed uptrend: trend strength above 65, price above its 20-session average, that average above the 50-session one, and ADX above 25 when available. Being overbought alone does not change it.
No SignalSideways movement, a weak trend with no clear sign, an unconfirmed oversold reading, or thin liquidity.
Weakening TrendA weak trend with fading momentum (a momentum score below 40), or an overbought reading.
Negative SetupHigh volatility (a volatility-control score below 40), or broad weakness: a score below 40, price under its 50-session average and relative strength below 50.
The score in the broad-weakness rule is the technical score before the financial health deduction, while the market-regime adjusted version uses the displayed score after it. That is why you may see a score below 40 on a stock whose base signal is not "Negative Setup".
ExampleAn invented stock, Al Reef Foods: trend strength 72, price above its averages, volatility-control score 35. The signal is "Negative Setup", because high volatility ranks above a strong trend in priority.
A fifth label, "Expected Correction", may appear in old records. The engine no longer issues it; the case it used to cover now shows "Trend Continuation".
These four are the engine's base decisions. On some screens FoudaLens shows a more precise label explaining the reason, such as "Bullish Momentum", "Consolidation", "Oversold Zone", "Low Liquidity", "Suspended" or "High Risk". That is not a fifth decision; it is a finer description of the same base decision.
What does a signal not say?
Myth"Trend Continuation" means buy.
RealityIt describes a trend that exists now. Your decision needs a plan, a position size and an exit level.
Myth"Negative Setup" means sell.
RealityThe engine issues no sell signal. It does not know whether you hold the stock or what you paid.
MythA signal is fixed.
RealityIt is recalculated with every new data point and can change from one day to the next.
Watch outSignals are an educational technical description, not a recommendation or a guarantee. Any stock can move against its signal.
See signals across the market
The signals page groups stocks by their current signal, and you can open any stock to see the reasons.