FL
Full transparency on how we evaluate and rank Egyptian stocks.
The Fouda Score is a quantitative rating from 0 to 100 that evaluates each stock listed on the Egyptian Exchange. It combines 5 technical factors into a single actionable number, updated daily after each trading session. The model is purely technical — it does not factor in fundamental data like earnings or P/E ratios.
Measures alignment with key moving averages (20, 50, 200 day). A stock trading above all three MAs with the shorter above the longer scores highest. This captures the direction and strength of the stock's overall trend.
Evaluates the rate of price acceleration using RSI and MACD indicators. Strong upward momentum with RSI between 40-70 scores well. Overbought (RSI > 75) or oversold (RSI < 30) conditions trigger adjustments.
Measures risk-adjusted returns. Lower volatility relative to returns is preferred. Stocks with high ATR (Average True Range) relative to price get penalized. This helps identify stocks that are rising steadily rather than chaotically.
Compares the stock's performance against the EGX30 index over 20 and 50 days. Stocks outperforming the market score higher. This identifies market leaders regardless of the overall market direction.
Checks whether price movements are supported by trading volume. A price increase on above-average volume (>1.5x 20-day average) is more reliable than one on thin volume. This confirms institutional interest.
The Fouda Score feeds into a multi-factor decision engine that generates actionable signals. Signals consider not just the score, but also RSI levels, ADX trend strength, volatility conditions, and the overall market regime.
The model analyzes the EGX30 index to determine the overall market state: Bullish, Bearish, Strongly Bearish, or Neutral. In bearish markets, buy signals are automatically downgraded to protect investors from buying into a declining market. This regime adjustment overrides individual stock signals when the market conditions are unfavorable.
The Fouda Score and all signals are quantitative analysis tools for educational and informational purposes only. They do not constitute investment advice, financial recommendations, or a solicitation to buy or sell any securities. Past performance does not guarantee future results. Always do your own research and consult a licensed financial advisor before making investment decisions.