pulse track AI

Complete Stock Analysis Methodology

AI + Technical Analysis Engine

📚 Complete Stock Analysis Methodology

PulseTrackAI combines technical analysis, quantitative scoring systems, machine learning models, trend analysis, momentum indicators, support and resistance detection, Fibonacci retracement systems, and financial quality analysis to generate automated stock research reports. Every signal, confidence score, bullish classification, bearish warning, and AI prediction displayed in the report is generated directly from backend Python analysis engines.

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RSI Momentum Analysis

RSI measures momentum strength and recent buying or selling pressure using historical price movement behavior.

  • RSI above 60 indicates bullish momentum.
  • RSI below 40 indicates bearish weakness.
  • RSI above 70 indicates overbought conditions.
  • RSI below 30 indicates oversold conditions.

📊 RSI Calculation Logic

  1. RSI > 60 → Strong Bullish Momentum .
  2. RSI < 40 → Weak Bearish Momentum .
  3. RSI 40–60 → neutral momentum classification.
  4. RSI contributes weighted scores inside the AI Scorecard engine.
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MACD Signal Analysis

MACD identifies trend continuation, momentum acceleration, and bullish or bearish crossover structures.

  • Bullish crossover strengthens confidence.
  • Bearish crossover weakens momentum.
  • Historical T+1 and T+5 validation is performed.
  • Signal reliability contributes AI scoring.

📊 MACD Backend Logic

  1. Bullish crossover → +2 bullish score .
  2. Bearish crossover → -2 bearish score .
  3. T+1 and T+5 move analysis validates signal reliability.
  4. Strong continuation improves confidence percentage.
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Long Term & Short Term Trend Analysis

EMA20, EMA50, and EMA200 are used to determine short-term, medium-term, and long-term trend direction.

  • EMA20 tracks short-term momentum.
  • EMA50 tracks medium-term trend.
  • EMA200 tracks institutional structure.
  • Multi-EMA alignment confirms strength.

📊 EMA Trend Logic

  1. Price above EMA20 → +1 bullish score .
  2. EMA20 above EMA50 → trend continuation confirmation.
  3. Price above EMA200 → strong long-term structure.
  4. Price below major EMAs → bearish structure classification.
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Support & Resistance Detection

Key price zones are identified using historical swing highs, swing lows, breakout failures, and repeated rejection analysis.

  • Support zones identify demand regions.
  • Resistance zones identify supply pressure.
  • Multiple rejections strengthen reliability.
  • Duplicate levels are automatically removed.

📊 Zone Detection Logic

  1. Swing lows become support zones.
  2. Swing highs become resistance zones.
  3. Multiple price rejections strengthen zone importance.
  4. Levels are dynamically extracted from technical analysis outputs.
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Fibonacci Retracement Analysis

Fibonacci retracement levels identify pullback zones, reversal regions, and trend continuation probability areas.

  • 23.6%, 38.2%, 50%, 61.8% levels are tracked.
  • Deep retracement indicates weakness.
  • Shallow retracement indicates strength.
  • Institutional reaction zones are monitored.

📊 Fibonacci Logic

  1. Fibonacci levels are generated using swing high and swing low ranges.
  2. Price reactions near Fibonacci levels are monitored for reversals.
  3. Higher bounce probability exists near strong retracement zones.
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AI Scorecard & Confidence Engine

Multiple technical indicators are combined into a weighted bullish and bearish scoring framework.

  • RSI contributes momentum scores.
  • EMA alignment contributes trend scores.
  • MACD contributes continuation probability.
  • ML prediction contributes AI confidence.

📊 AI Confidence Logic

  1. Bullish conditions add positive weighted points .
  2. Bearish conditions reduce confidence strength.
  3. Final AI confidence percentage is generated from combined scores.
  4. Higher alignment across indicators produces stronger confidence.
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Performance & Key Metrics

Historical returns, 52-week range position, and volume behavior are calculated using OHLCV datasets.

  • Tracks 1D, 1W, 1M, and 1Y returns.
  • Calculates 52-week range position.
  • Monitors liquidity behavior.
  • Measures volatility conditions.

📊 Metrics Calculation Logic

  1. Returns are calculated using historical close prices.
  2. Current price is compared against 52-week high and low.
  3. Higher range position usually indicates stronger momentum.
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Financial Snapshot Analysis

Financial quality analysis combines valuation, growth, profitability, and balance sheet risk metrics.

  • PE Ratio evaluates valuation premium.
  • ROE measures capital efficiency.
  • Revenue growth measures expansion.
  • Debt-to-equity measures risk exposure.

📊 Financial Logic

  1. PE above 60 may indicate premium valuation risk.
  2. ROE above 15% indicates efficient capital usage.
  3. High debt ratios increase risk classification.
  4. Growth and profitability improve quality score.