What is a Conviction Score?
The conviction score (0-100) represents our confidence in a signal.
Score Components
| Component | Weight | What It Measures |
|---|---|---|
| Technical | 30% | Price action, momentum, structure |
| Flow | 30% | Options activity, dealer positioning |
| Sentiment | 20% | News, social, fear/greed |
| Regime | 20% | Does direction match environment |
Score Interpretation
| Score | Label | Suggested Action |
|---|---|---|
| 80-100 | Very High | Full position |
| 60-79 | High | Standard position |
| 40-59 | Moderate | Reduced size |
| 20-39 | Low | Paper trade or skip |
| 0-19 | Noise | Ignore |
The "High Voltage" Threshold
When conviction exceeds 75 AND all confirmation lights are green, we call this HIGH VOLTAGE - our highest confidence signals.
Key Takeaways
- Conviction is multifactor, not just technical
- Higher scores = higher confidence, not higher returns
- Use scores to size positions appropriately