How to read a MarketLens score without treating it as a forecast
The tool displays two different rule sets: a six-condition indicator score and a separate entry/exit illustration. They use historical calculations. Neither is personalized to the visitor, predicts a future return, or places an order.
The six-condition indicator score
For the currently selected symbol and loaded series, MarketLens assigns each of six observations a value of +1, −1 or 0. The observations are: closing price versus the 50-period SMA; EMA 20 versus EMA 50; RSI 14; MACD line versus its signal line; close relative to the 20-period Bollinger Bands; and volume relative to its 20-period average combined with the day's direction. The values are added together, producing a range from −6 to +6.
The interface labels totals of +3 or more “Buy,” totals of −3 or less “Sell,” and all other totals “Hold.” These words are outputs of a fixed rule. They are not a probability, valuation, expected return, risk rating, recommendation, or indication that an asset is suitable for anyone. They should be read as “the rules in this tool produced this label from this data.”
The components are not independent. For example, two moving averages, MACD and price-versus-average conditions all use overlapping closing-price history. A strong-looking total can therefore reflect similar evidence counted in more than one way. A threshold can also change abruptly when a value crosses a boundary by a small amount.
The separate MarketLens algorithm illustration
The chart’s entry/exit overlay uses a different set of rules. In the current implementation, the uptrend filter requires EMA 20 above EMA 50, the close above SMA 50, and ADX above 18. At least one trigger is required: an RSI pullback that dipped below 40 and recovered above 45, or a close above the prior 20-bar high with volume above 1.2 times its 20-bar average. The MACD histogram must be rising and RSI must be below 75.
After an illustrative entry, the overlay exits on a close below a trailing stop based on the highest close since entry minus three ATR, with the initial stop set two ATR below entry; it also exits if EMA 20 falls below EMA 50 while the close is under SMA 50. These formulas are rules for the chart display, not instructions to enter or exit a real position.
Questions to ask before interpreting a label
- What is the data status? A simulated series can demonstrate the interface but cannot substantiate a market conclusion.
- What is the lookback window? The same formula can produce different values on a different interval or period.
- Which conditions drove the result? Inspect the individual values; do not rely only on the color or total.
- What is missing? The score does not include a company’s fundamentals, news, valuation, portfolio concentration, liquidity needs, tax position or risk tolerance.
- Could the pattern be noise? Many thresholds and combinations can look compelling by chance when tested after the fact.
Risk and responsibility
Prices can move against any historical pattern. Trading can result in partial or total loss, and crypto assets can be especially volatile. A stop rule does not guarantee a fill at the intended price; gaps and illiquidity can cause different execution. No MarketLens output accounts for a visitor's personal circumstances. For general investor education, consult official resources such as the SEC’s Investor.gov.