Technical Scorecard distills 5 technical factors into a single 0-100 number. Used right, it's a fast first-pass filter. Used wrong, it's a false-confidence machine. This guide walks through how to read it correctly.
Step 1 — Open stock detail page
Navigate to /stock/RELIANCE (or any symbol). Right sidebar (desktop) shows Technical Scorecard card with overall score + 5 factor bars + label.
Step 2 — Read the headline
- 80-100 Exceptional: Top decile across all factors. Strong trend + momentum + volume + active signal.
- 65-79 Strong: Solid setup with 1-2 minor weak factors.
- 50-64 Average: Mid-quality. Often range-bound or transitioning.
- 35-49 Below Average: Weak technicals. Approach with caution.
- 0-34 Weak: Multiple negative signals. Either downtrend or pre-breakout consolidation.
Step 3 — Inspect 5 factor bars
Trend (25% weight)
Combines: price vs 50-EMA, price vs 200-DMA, EMA slope, ADX.
- High (80+) = strong uptrend, price above key MAs, ADX > 25
- Low (under 40) = downtrend, price below MAs, falling slope
Momentum (25% weight)
Combines: RSI(14), MACD signal-line position, rate of change, momentum oscillator readings.
- High = RSI 50-70 + MACD positive + accelerating price
- Low = RSI below 40 + MACD negative + decelerating
Volume (15% weight)
Combines: current volume vs 20-DMA, volume on green vs red days, OBV (on-balance volume) trend.
- High = elevated volume on green days, declining on red days, OBV rising
- Low = anaemic participation, OBV declining
Volatility (15% weight)
Combines: ATR, Bollinger Band width, beta vs Nifty.
- High score = volatility favourable for the direction (compressed bands in uptrend = breakout setup)
- Low score = volatility too high (whipsaws likely) or too low without setup
Signal Strength (20% weight)
Combines: confidence of active signals on the stock, R/R of signals, recency, signal-type quality.
- High = recent high-confidence signal with strong R/R
- Low = no active signal or stale low-conviction signal
Step 4 — Cross-check with fundamentals
Technical scorecard alone tells you if charts agree. Fundamental scorecard tells you if business agrees. Combine:
| Technical | Fundamental | Read |
|---|---|---|
| High | High | High-conviction long setup |
| High | Low | Momentum trade only — short-term hold |
| Low | High | Quality oversold — accumulate slowly |
| Low | Low | Avoid both fundamentally + technically broken |
See fundamental scorecard guide for the other half.
Step 5 — Verify with chart + signals
Score is a starting filter. Before entry:
- Look at the chart for clean setup (breakout, pullback, base completion)
- Check active signals — confidence + R/R
- Identify entry, stop, target levels
- Position size at 1% risk via Position Sizing calculator
Common mistakes
- Buying solely on high overall score. Score is filter; setup is signal.
- Ignoring factor breakdown. 70 overall with weak volume = unhealthy rally. Different than 70 with strong volume.
- Skipping fundamental cross-check. High tech + low fundamentals often = pump-and-dump candidates.
- Trading every high score. Wait for setups completing on high-score stocks. 5-10/month is enough.
Score-aware screening
Use technical scorecard threshold in screener: “Technical score > 70” + quality + value filters = top-of-funnel candidate list. See custom screener guide.
Score caveats
- Scores update on market-data refresh (every 5 min during market hours).
- Bear market: most scores compress to 30-60 range. Use bull-market thresholds adjusted for regime.
- Small-cap scores noisier than large-cap (sparser data).
- F&O expiry days can spike volume score temporarily.
Pair with active signals + chart pattern for full conviction. Combine with portfolio tracking to monitor scores on holdings over time.