SIGMA - Smart Investment Guidance & Market Analysis

Overview

SIGMA is a web-based stock screening and analysis tool designed to identify high-quality trading opportunities by analyzing technical indicators, volume patterns, and support/resistance levels. The application performs daily automated analysis of stocks from a database and presents results in an intuitive interface with detailed entry point analysis for each opportunity.

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Console Container

The Console displays real-time log messages from the application's background processes. It shows:

• Analysis start/completion timestamps
• Number of stocks analyzed
• Filtering progress and results
• Error messages and warnings
• System status updates

The console helps you monitor the application's activity and troubleshoot any issues. You can collapse or expand this section using the toggle button.

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Analysis Results Container

The Analysis Results table displays all stocks that meet SIGMA's screening criteria. Stocks are filtered to show only those with:

• No current breakout (consolidating for potential entry)
• Strong or Moderate 8 EMA uptrend
• Trading above 200-day SMA
• Strategy score ≥ 0.50

Click any row to open detailed entry point analysis for that stock.

Table Headers

Header	Description
Ticker	Stock symbol
Exchange	Trading exchange (NYSE, NASDAQ, etc.)
Price	Current stock price
Market Cap	Market capitalization in billions
Strategy Score	Combined score (0-1.0) based on relative volume, ATR%, and average volume liquidity
Setup Score	Technical setup quality (0-100) based on breakout status, EMA trend strength, EMA reclaims, and 200 SMA position
8 EMA Trend	Strength of the 8-period exponential moving average uptrend (Strong/Moderate/Weak/Below)
EMA Reclaims	Number of times price reclaimed the 8 EMA after falling below it in the last 50 days
Rel. Volume	Current volume relative to 30-day average (percentage)
ATR %	Average True Range as a percentage of current price (volatility measure)
Support Levels	Number of significant support levels identified in recent price action

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Entry Point Analysis Container

When you click a stock from the results table, the Entry Point Analysis displays a detailed chart and entry recommendations. This container provides everything you need to plan a trade.

Chart Display

The chart shows:

• Candlestick price action for the last 60 days
• 8 EMA (gold line) - Short-term trend indicator
• 200 SMA (blue line) - Long-term trend indicator
• Support levels (green dashed lines) - Historical swing low prices where buyers stepped in
• Fibonacci retracement levels (colored dotted lines) - Mathematical levels where pullbacks often find support
  • 23.6% (cyan)
  • 38.2% (yellow)
  • 50.0% (orange)
  • 61.8% (red)

Entry and Risk Metrics

Current Price

The most recent closing price of the stock.

Primary Entry

The recommended first entry point based on:

• Historical retracement patterns (how deep the stock typically pulls back)
• Support cluster locations (areas with multiple support levels)
• Fibonacci retracement levels
• Current price structure

This is calculated by analyzing the stock's pullback behavior and identifying the most likely level where the stock will find support.

Secondary Entry

An optional additional entry point if the stock pulls back further than the primary entry. This provides a second opportunity to add to your position at a better price. The secondary entry is typically placed at:

• The bottom of a support cluster, or
• A deeper Fibonacci level, or
• The next significant support level below the primary entry

Stop Loss - Conservative (Yellow)

A tighter stop loss placed approximately 4% below the primary entry. This is for traders who:

• Want to limit risk per trade
• Trade larger position sizes
• Prefer to be stopped out early and re-enter if needed

Stop Loss - Moderate (Orange)

A balanced stop loss placed approximately 6% below the primary entry. This is for traders who:

• Want a balance between risk and giving the trade room to work
• Use standard position sizing
• Accept moderate drawdowns for better win rates

Stop Loss - Aggressive (Red)

A wider stop loss placed approximately 8% below the primary entry. This is for traders who:

• Want to give the trade maximum room to work
• Use smaller position sizes to accommodate wider stops
• Prefer fewer false stop-outs

Note: Stop losses may be adjusted slightly if a strong support cluster is detected, ensuring they honor key support zones.

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Analysis Insights

Average Retracement Depth

This metric shows the typical percentage that the stock retraces from swing highs to swing lows, based on historical patterns over the last 60 days. It helps predict how far the current pullback might extend.

Pullback Patterns:

• Very Shallow (< 15%) - Stock rarely pulls back significantly; tends to consolidate sideways
• Shallow (15-30%) - Healthy pullbacks, typically finds support quickly
• Moderate (30-45%) - Standard pullbacks to the 38.2% Fibonacci level
• Deep (45-55%) - Pulls back to the 50% retracement level regularly
• Very Deep (> 55%) - Frequently retraces more than halfway; wait for deeper entries

The primary entry is intelligently selected based on this historical behavior to match the stock's natural pullback rhythm.

Support Cluster

A support cluster occurs when multiple support levels (historical swing lows) are grouped closely together, typically within 3% of each other. This creates a zone of strong buying interest rather than a single price point.

When a support cluster is detected, the analysis shows:

• Number of levels in the cluster (strength indicator)
• Price range from bottom to top of the cluster

Clusters are significant because:

• Multiple historical tests create stronger support
• Buyers have repeatedly stepped in at these prices
• The zone provides multiple opportunities for entry
• Stop losses can be placed just below the cluster with confidence

The entry points may be adjusted to align with detected clusters, placing the primary entry at the top of the cluster and the secondary entry at the bottom, maximizing the probability of finding support.

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Using SIGMA

1. Review the Analysis Results - Stocks are sorted by Support Levels (descending) by default. Look for stocks with high Strategy Scores and Setup Scores.

2. Click a stock - Open detailed entry point analysis to see the chart and recommended entries.

3. Evaluate the setup - Review the Analysis Insights to understand the stock's pullback behavior and support structure.

4. Plan your entries - Use the Primary and Secondary entry levels to plan limit orders.

5. Set your stop loss - Choose Conservative, Moderate, or Aggressive based on your risk tolerance and position size.

6. Monitor support levels - Watch the listed support and Fibonacci levels as the stock pulls back to confirm the analysis.

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Tips

• Stocks with strong support clusters and shallow retracement patterns often provide the best risk/reward setups.
• The primary entry is designed to catch the first bounce; use the secondary entry for deeper pullbacks.
• Match your stop loss tier to your position size - smaller positions can use aggressive stops, larger positions should use conservative stops.
• Pay attention to the 8 EMA trend strength - "Strong" trends have higher probability of continuation.
• Stocks with 3+ EMA reclaims show consistent respect for the 8 EMA as support.