What is the "quantum direction" component?

The heaviest single input to a stock’s conviction score (30% of it). It asks one question of the forecast itself: does the model lean upward, and does it lean far enough to be worth trading? A gentle drift up is not the same as a real move, so the component only pays full marks when both are true at once.

The two things it demands at once

The model simulates a large number of possible price paths for the stock, and those paths are not all equally likely — each carries a weight. Two numbers come out of that: what share of the model’s path weight ends above today’s price (the upward lean), and how big the expected move is (the expected growth over the horizon).

The component scores 1 — full marks — only when at least 65% of that weight sits above today’s price AND the expected move is at least +10%. If the model merely leans upward (half or more of the weight above) but the expected move is small, it scores ½. Otherwise it scores 0. In plain terms: the model has to be both pointing up and pointing up hard.

Why a count of rising paths is not a promise about your money

This is the most important sentence on this page, so it is worth being blunt: the share of simulated paths ending above today’s price is not the chance you make money, and we will never present it as such. It treats a one-cent rise exactly the same as a doubling. It is silent on the size of the loss on the paths that went the other way. And it is the output of a model whose own confidence bands are only approximately calibrated.

A stock can have most of its paths ending slightly higher while the minority that fall, fall catastrophically — a coin-flip that pays you a dollar or costs you fifty. That is precisely why direction is only 30% of the conviction score and never the whole of it, and why a zero on the tail-risk component overrides it entirely.

Why it can veto everything else

Quantum direction is one of the two gate components in the conviction ledger. If it scores 0 — the model sees no upward edge worth naming — the whole conviction score is capped at 3.0 out of 10, no matter how bullish every technical indicator looks. A perfect chart cannot manufacture a thesis the forecast does not support. The other gate component is quantum tail risk.

What to do with it

Read it as the answer to "does the forecast itself actually back this trade?" — before you look at any chart pattern. If it is 0, nothing further on the page can rescue the setup and you should expect a WAIT or AVOID verdict. If it is 1, the model is pointing up with conviction, and your next question should be the one the tail-risk component answers: how bad is the downside if it is wrong?

Frequently asked questions

Does a full score mean the stock will go up?

No. It means the model’s simulated paths lean upward and the expected move over the horizon is at least +10%. That is a statement about the forecast, not a promise about the outcome — the model can be wrong, and a full score is not a guarantee of any kind.

Why does a stock with a rising chart still score 0 here?

Because this component reads the forecast, not the chart. The trend, MACD, RSI and 52-week-position components read the chart, and they are deliberately outvoted: if quantum direction is 0, the conviction score is capped at 3.0 however good the chart looks.

Why only three possible values instead of a smooth score?

Deliberate coarseness. The underlying forecast is not precise enough to justify a smooth score, and a three-step cut-off is honest about that. A finer number would imply a precision the model does not have.

See it on a ticker

Browse all S&P 500 tickers to see this metric applied to individual companies.

Related terms

Educational research only — not investment advice.