How to read a QuantWave forecast
Forecast Components
Each QuantWave forecast contains these key elements:
Component | Description | Example |
---|---|---|
Asset | The financial instrument being analyzed | AAPL (Apple Inc.) |
Signal Type | Recommended action | BUY or SELL |
Entry Zone | Optimal price range to enter | $150.20 - $152.80 |
Target Price | Expected price destination | $165.00 (+8%) |
Stop Level | Exit point if trade moves against you | $145.50 (-3%) |
Timeframe | Expected duration of trade | 5-8 trading days |
Confidence | Probability of success | High (75%) |
Step-by-Step Interpretation
1. Identify the Signal Direction
- BUY = Expecting price to rise
- SELL = Expecting price to fall
2. Check Price Parameters
- Compare current price to entry zone
- Calculate potential reward (target to entry)
- Calculate potential risk (entry to stop)
3. Evaluate Timeframe
- Short-term (1-5 days)
- Medium-term (1-4 weeks)
- Long-term (1+ months)
4. Assess Confidence Level
- Low (50-65%) - Higher risk
- Medium (66-79%) - Balanced
- High (80%+) - Strong conviction
Practical Example
Forecast: "BUY AAPL $150.20-$152.80, Target $165.00 (+8%), Stop $145.50 (-3%), 5-8 days, High Confidence (75%)"
Interpretation:
- Wait for AAPL to trade between $150.20 and $152.80 to enter
- Aim for $165.00 profit target (8% gain)
- Exit if price drops to $145.50 (3% loss)
- Trade should work within 1-2 weeks
- 75% chance of reaching target
Important Notes
- Always combine with your own analysis
- Manage position size according to risk
- Consider market conditions
- Review forecast updates regularly
QuantWave forecasts provide structured trading opportunities with clear parameters. By understanding each component, traders can make informed decisions while maintaining proper risk management.