Indicator guides

The Neglect Index: Finding Bottomed-Out Stocks by the Numbers

The neglect index shows where today's price sits inside the stock's one-year range, from 0 to 100. Lower means closer to the bottom. How it is calculated, how to read it, and the common traps.

How to Find Low-PER Stocks: A Value Screening Primer

PER compares the price to the profit a company earns. Lower means cheaper relative to earnings. The screening threshold we use, and how to avoid the classic low-PER trap.

Reading Money Flow: The Basics of Supply and Demand

Supply and demand is really the question of where money is moving. How to approximate money flow from price and volume, and the practical order for reading inflow and outflow signals.

Sector Money Flow and How to Read Rotation

Money in the market rarely disappears; it moves between sectors. The logic of rotation, how to catch the move with sector net flow, and a frame for thinking about the next sector.

The Expectation Score: Five Signals in One Number

The expectation score gathers five signals, upside room, bottom range, value, money direction, and leadership, into one 0-100 number. The weights, how to read it, and its limits.

What PBR Below 1 Means: Trading Under Book Value

PBR below 1 means the whole company trades for less than its net assets on the books. Why such prices happen, and the line that separates opportunity from trap.

Reading a Stock's Position with the 52-Week Range

The 52-week high and low are a stock's one-year map. How to read drawdown from the high, rebound from the low, and position in the range, with the upside calculation.

The Graham Number: PER Times PBR Against 22.5

A beginner's version of Benjamin Graham's fair-price ceiling. One multiplication, PER times PBR at or below 22.5, filters out expensively priced stocks, with the limits of the rule.

The PEG Ratio: Re-Reading Value with Growth Included

PEG divides PER by the earnings growth rate. Below 1 reads as cheap relative to growth speed. The calculation order, where the growth number comes from, and the traps in fast growers.

Following the Magic Formula: Adding Two Rankings

Joel Greenblatt's magic formula ranks stocks by the sum of two orderings, earnings yield and return on capital. A simplified version with public data, a worked example, and the caveats.