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 iSᵢ= normalized signal value for family iclamp= bounds the result to [−1, 1]
Decision Boundaries
| MOS Range | Action |
|---|---|
| MOS ≥ +0.2 | LONG candidates validated |
| MOS ≤ −0.2 | SHORT candidates validated |
| −0.2 < MOS < +0.2 | NO TRADE |
Neutral Zone
The neutral zone (−0.2 to +0.2) acts as a dead band, preventing trades in ambiguous market conditions.