Entry
The reference price at which the signal was generated. The signal's take-profit and stop levels are defined relative to this price.
Methodology
How signals, lifecycle, and performance work.
Every headline metric on MarketOwl has a definition behind it. This page documents signal types, lifecycle states, win/loss definitions, P/L calculations, and the risk context you should read before acting on any signal.
Signal taxonomy
Each signal is described by four dimensions: direction, category, timeframe, and power.
Direction (Type 1)
- LONG
- Bullish signal. The analysis anticipates an upward price move from the entry price toward the resistance targets (r1–r8).
- SHORT
- Bearish signal. The analysis anticipates a downward price move from the entry price toward the lower take-profit targets.
Category (Type 2)
- ALPHA
- Signals identified by the Alpha model configuration. Based on the strongest setup criteria detected by the analysis engine.
- GAMMA
- Signals identified by the Gamma model configuration. Based on a strong secondary pattern configuration.
- CLASSIC
- Signals identified by the Classic model configuration. Based on the core pattern recognition methodology.
- INV (Inverse)
- Signals identified by the Inverse model configuration. Counter-trend pattern that runs against the primary direction.
Timeframe
Signals are analyzed on one of six candle resolutions: 1-HOUR, 4-HOUR, 8-HOUR, 12-HOUR, 1-DAY, or 1-WEEK. Longer timeframes typically produce signals that take more time to resolve and carry larger price-level targets.
Power
- NORMAL
- Standard signal meeting the base conviction threshold for the category.
- STRONG
- Elevated conviction based on additional confirming factors in the analysis model.
Price levels
Each signal includes a set of price boundaries used to track progress and determine outcome:
r1 – r8 (Resistance / Take-Profit)
Up to 8 take-profit targets. r1 is nearest to entry; r8 is the furthest. LONG signals move toward higher r-values; SHORT signals move toward lower r-values.
s1 – s4 (Support / Stop)
Support levels used as stop-loss boundaries. If price reaches s1 before any r-level, the signal closes as a loss.
Trailing stop
After partial take-profit progress, a trailing stop can activate to lock in gains and close the signal if price reverses past the trailing boundary.
Signal lifecycle
A signal transitions through states as price action progresses. The table below describes each state.
- 1
- PENDING
- Signal created and live. Price has not yet moved meaningfully toward any target.
- 2
- R1 – R8 (In Progress, level 1–8)
- Price has reached the corresponding take-profit level (r1 through r8). The signal remains active and is tracking toward higher targets.
- 3
- TRAILING
- At least one take-profit level was reached and a trailing stop is now active. The signal closes when price reverses through the trailing boundary.
- ✓
- TAKEPROFIT
- Signal closed at a take-profit boundary. Counted as a win in performance calculations.
- ✗
- STOPLOSS
- Price reached the support stop (s1) before any take-profit level. Counted as a loss.
- —
- EXPIRED
- Signal exceeded its allowed duration without reaching a stop or take-profit. Excluded from win/loss rate calculations.
Performance calculations
Win
A signal that closed at a take-profit boundary (TAKEPROFIT outcome). Includes signals stopped by a trailing stop after reaching at least r1.
Loss
A signal stopped at the support boundary before reaching any take-profit level (STOPLOSS outcome).
Success rate (win rate)
Wins ÷ (wins + losses) × 100, calculated over completed non-expired signals in the selected time window.
P/L percentage
The percentage price movement from the entry price to the final stop level, summed across completed signals. This is a signal-level P/L and does not account for position sizing, leverage, or trading costs.
Expired signals are excluded from the win rate and completed P/L totals. In-progress and expired signal P/L figures are reported separately on the performance page to keep headline metrics honest.