The gate
A scrip can look strong and still get no Bullish reading. The panel has a market gate: while NEPSE closes below its 200-day average, no scrip gets a Bullish reading. This is on purpose. It is not a fault and not missing data.
On Today's readings you will then see an empty Bullish box and a notice at the top. It shows where NEPSE closed, the 200-day average, and the line NEPSE has to cross for Bullish readings to come back.
What the 200-day average is
It is the average of the last 200 daily closes. It moves slowly. When the price sits below it, the market has been weaker than its recent past for a long stretch.
NEPSE closing above the line does not mean it will keep rising. It only means the market is no longer under its long average.
A real-life example
A fruit seller has the best apples in the bazaar. One month the whole bazaar is quiet because of a strike, and few customers come. Even the best stall sells less that month.
A careful seller does not buy extra scrip just because the apples look good. He waits to see the customers return. The gate works the same way: the rule assumes a strong chart is less trustworthy when the whole market is falling.
What the gate does not do
The gate does not say the market will keep falling, and it does not say to sell. Scrips marked Neutral or Bearish still show as before.
It also does not guarantee a Bullish reading is safe when the gate is open. NEPSE can climb above the line for a few days and fall back below it. Then the Bullish readings go away again.
The gate is a rule the panel was built with. It has not been shown to protect money.
Beta, not advice
The signals are in Beta and are not investment advice.
Practice
- Open Today's readings and look at the top of the page.
- If you see the notice Market in a downtrend: Bullish readings paused, the gate is closed. Read where NEPSE closed and the 200-day average it has to beat.
- If there is no notice, NEPSE is above its 200-day average and the Bullish box lists whatever scrips qualify, which may be none.
Where this is used here
This lesson explains how to read prices and the tools here. It is not advice to buy or sell anything.