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4.3 Market Outlook Score (MOS)

The Market Outlook Score aggregates five families of signals into a normalized scalar in the range [−1, 1]:

  • Trend — Directional bias
  • Momentum — Rate of price change
  • Volume — Participation strength
  • Volatility — Price dispersion
  • Multi-timeframe slope alignment — Cross-timeframe validation

Formula

MOS = clamp( Σ (wᵢ · Sᵢ), −1, 1 )

Where:

  • wᵢ = weight for signal family i
  • Sᵢ = normalized signal value for family i
  • clamp = bounds the result to [−1, 1]

Decision Boundaries

MOS RangeAction
MOS ≥ +0.2LONG candidates validated
MOS ≤ −0.2SHORT candidates validated
−0.2 < MOS < +0.2NO TRADE
Neutral Zone

The neutral zone (−0.2 to +0.2) acts as a dead band, preventing trades in ambiguous market conditions.