Methodology & Data Sources
Last updated: August 21, 2026
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1. Overview
SpeedSignal scans 3,000+ US equities daily across configured Russell, S&P 500, and Nasdaq 100 universes shortly after the close and assigns each ticker a phase (Coiling, Pre-Ignition, Liftoff or Below) plus a 0–100 score and a Conviction level (Low / Medium / High). Higher scores combined with higher Conviction mean more of the screening conditions are met.
Our scoring is algorithmic and rules-based. It does not use AI predictions, sentiment analysis, or subjective judgment. Given the same market data, every score is reproducible.
2. The Three Pillars
Each pillar is scored from 0 to 100 based on how many of its conditions are present. The three pillars then combine into a single 0–100 score.
Pillar 1: Base "Stealth Coil"
Describes how orderly and compressed a stock's recent trading behavior is:
- Volatility Contraction: how much the stock's day-to-day price swings have tightened versus its own recent history. Tighter compression scores higher.
- Tightness: how narrow and controlled the recent trading action is.
- Squeeze Detection: whether recent volatility compression is notable enough to support a tighter, more orderly setup classification.
- Trend Quality: whether the stock is trending up in an orderly way rather than downtrending or chopping sideways.
- Pivot Proximity: how close the stock is to a relevant technical reference area identified by the methodology.
Pillar 2: Accumulation "Demand Profile"
Surfaces price and volume behavior often associated with persistent participation:
- Relative Strength: whether the stock is leading the broad market rather than lagging it.
- Money Flow: whether volume and price behavior fit sustained-participation patterns rather than a one-day spike.
- Volume Dry-Up: quiet volume while price holds tight, describing reduced participation inside the base.
- Sector Tailwind: whether the broader industry group is supportive rather than acting as a headwind.
Pillar 3: Ignition "Participation Expansion"
Measures whether current price and participation behavior is broadening versus the recent baseline:
- Volume Impulse: whether trading activity is expanding materially versus the stock's normal baseline.
- Early Ignition: whether price and participation are strengthening in the current data.
- Candle Quality: whether the session's price action shows broad-participation characteristics rather than thin or one-sided trading.
3. Phase Classification
| Phase | Meaning |
|---|
| Coiling | Compressed volatility and tight price action that meet the methodology's base-formation criteria. |
| Pre-Ignition | Momentum and accumulation conditions visible in the data. Earlier-stage candidates. |
| Liftoff | Strongest active phase. Price and participation conditions are most aligned in the data for this screening methodology. |
| Below | Not in any active setup phase right now. |
4. Conviction Level
Inside each phase, we add a Conviction dimension: Low, Medium, or High. Conviction reflects how a ticker's score ranks against the rest of the market in that session; High Conviction is reserved for the highest relative scores of the day. It is a separate axis from phase: a Coiling ticker can be High Conviction, and a Liftoff ticker can be Low Conviction.
5. Risk Flags & Anomalies (informational)
Some tickers carry context flags that do not change the score itself but signal risk worth knowing:
- Extended: the stock is already far from its recent base, so the board marks it as extended context.
- Bearish Market Regime: the broad market itself is trending down, a headwind for new breakouts.
- Elevated VIX: market-wide volatility is running high.
- Pre-Earnings Run: a known earnings event is near (event risk).
- Anomaly: a statistical outlier shown separately from the canonical setup classification.
6. Eligibility Filters
Before classification, stocks pass coverage filters so the board focuses on sufficiently liquid US equities with meaningful data. The values below are the dashboard defaults; most can be adjusted in Signal Board filters.
- Price ≥ $2
- Liquidity: a minimum average daily dollar-volume
- Market Cap ≥ $300M
- Free Float > 30%
- Not in a clearly established downtrend
- No excessive gap down
- Earnings buffer: scoring paused within a window around confirmed earnings dates, to reduce event-driven noise
7. Data Sources
| Data Type | Source | Update Frequency |
|---|
| Price & Volume | Third-party US-equities market data (Massive) | Daily at close |
| Fundamentals | TradingView Scanner, Finnhub and SEC filings | Provider-dependent |
| Earnings Dates | TradingView Scanner and supplemental provider data | As available |
| Market Context | SPY, VIX and sector benchmark ETFs | Daily at close |
| Company Info | TradingView Scanner with provider fallbacks | Refreshed during enrichment |
8. Limitations
- Scores reflect end-of-day data; intraday moves are not captured
- Historical scores may differ from live scores due to data revisions
- Earnings data availability varies by ticker
- Small-cap stocks can behave differently from larger companies; the board treats that context separately where relevant
- The system is optimized for daily timeframe breakout detection
9. Disclaimer
This methodology description is provided for transparency and educational purposes. Speed Signal AI is screening and analytics software, not a broker-dealer or investment adviser. Scores, phases, and screening results are data outputs and research candidates, not investment advice, recommendations, trading signals, or a buy list. Past performance of high-scoring stocks does not guarantee future results. Always conduct your own research and consult a qualified financial advisor.