Methodology

This page explains exactly how each read is produced. If something here is unclear or looks wrong, that is worth telling us about.

Technical read (0–10)

Computed from up to one year of daily price and volume data. The score adds points for conditions that historically accompany a healthy trend, then applies hard caps that can only reduce it:

Trend: price above its 50-day and 200-day moving averages; 20-day average above the 50-day.
Momentum: MACD line positive; RSI(14) in a constructive band rather than exhausted.
Position: proximity to the 52-week high; 20-day and 5-day price change.
Participation: volume relative to its own 30-day average.

Hard caps (these only ever lower a score):

RSI above 85 → score capped at 4. RSI above 75 → capped at 7. A stock can be in a strong trend and still be a poor entry.
A two-day fall of 5% or more → capped at 6.
A stock that previously fell more than 10% within 14 days of appearing in our picks is excluded from picks for 30 days.

These caps exist because of what we saw in our own early data: high-scoring, RSI-exhausted entries performed materially worse than more moderate ones. The caps are the correction.

Fundamental read (0–100)

Averaged from up to four components, each scored 0–100 from published figures. Components with no available data are skipped rather than guessed:

Valuation: trailing P/E and price-to-book.
Financial health: debt-to-equity, cash versus debt relative to market cap, free cash flow.
Profitability: return on equity and net margin.
Growth: revenue growth, and whether forward P/E sits below trailing P/E.

A very expensive valuation cannot be averaged away: a strong business at an extreme multiple is capped and labelled as such, because the price you pay is part of the outcome.

Price targets and stops

A target is shown only when the chart has structure to project toward — a genuine overhead resistance level, or an established uptrend or breakout. For sideways, weakening or falling charts, no target is shown at all, and the page says so plainly. Inventing a number for a structureless chart would be false precision. A suggested stop level is still shown, because risk always matters.

Banks and financial institutions

Deposits are a bank's raw material, not corporate leverage. For banks and NBFCs the tool suppresses the standard debt-versus-cash framing and points to asset quality and capital ratios in official filings instead, because applying a manufacturer's balance-sheet lens to a bank is a category error.

Known limitations

Technical analysis describes what price has done, not what a business is worth. A high technical score is not a valuation opinion.
Figures come from third-party public data and may be delayed, revised, or occasionally wrong. Where a value looks implausible, the tool omits it rather than displaying a number it cannot trust.
Scores change as prices change. A read is a snapshot, not a standing recommendation.
Event risk — earnings, regulatory action, corporate announcements — can invalidate any technical signal instantly.

Educational only — not financial advice. checkthestock provides automated, rules-based interpretations of public market data. It is not personalised investment advice, and the same output is shown to every visitor. Always do your own research and consult a licensed financial adviser before investing.

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