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The Scoring Algorithm Behind MoodFlow's Buy/Sell Signals — Full Breakdown

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The Scoring Algorithm Behind MoodFlow's Buy/Sell Signals — Full Breakdown

Why I Built a Scoring Engine Instead of Using an LLM

LLMs (like GPT-4, DeepSeek) are great at language, mediocre at numbers. Ask an LLM "should I buy DBS?" and it gives you a well-written non-answer. A scoring engine gives you a number.

The Full Formula 

Total Score = Technical(40%) + Fundamental(35%) + Capital Flow(25%)
             = 0-100 points
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1. Technical Score (40 points max)

Based on 18 indicators:

  • Moving averages (MA5, MA20, MA60)
  • Bollinger Bands (upper, lower, position)
  • KDJ (K, D, J lines)
  • CCI, WR, ATR, VWAP
  • Support & Resistance levels (3 levels each)
  • Price vs MA positions

Scoring: Each bullish signal → +5 points. Each bearish → -5 points. Floor 0, ceiling 100.

2. Fundamental Score (35 points max)

Metric Range Points
PE Ratio <10 → 50pts, 10-15 → 40pts, 15-20 → 30pts, 20-25 → 20pts, >25 → 10pts 50 max
ROE >20% → 30pts, 15-20% → 25pts, 10-15% → 20pts, 5-10% → 15pts, <5% → 10pts 30 max
Revenue Growth >20% → 20pts, 10-20% → 15pts, 0-10% → 10pts, negative → 5pts 20 max

3. Capital Flow Score (25 points max)

Metric Range Points
OBV Trend Strong up → 40pts, Up → 30pts, Flat → 20pts, Down → 10pts 40 max
MFI 20-40 → 35pts, 40-60 → 30pts, 60-80 → 20pts, <20 or >80 → 10pts 35 max
Volume Ratio >2.0 → 25pts, 1.5-2.0 → 20pts, 1.0-1.5 → 15pts, 0.5-1.0 → 10pts, <0.5 → 5pts 25 max

Signal Mapping

Score Signal Meaning
70-100 🟢 Buy Strong conviction
55-69 🟠 Hold Mixed signals
40-54 🟡 Wait Uncertain
0-39 🔴 Sell Strong sell signal

When AI Takes Over

If the rule engine and DeepSeek AI disagree by more than 20 points → "deep divergence" detected. This triggers a special analysis that flags what the indicators say vs what the AI interprets — giving you both perspectives.

The algorithm is open about its scoring. You can verify every number.

👉 https://getmoodflow.com

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