What counts as a signal in our scanner — and how common each one is
A condition present in 60% of the market cannot, by construction, be selective.
Every site's scanner uses the word "breakout" and almost none define it. Ours doesn't use the word at all in its output — what we publish is a set of named signals, each with a specific condition, and a count of how many a stock currently shows. This piece lists them and their frequency.
The signals, and how common each is
| Signal | Stocks showing it | Share of universe |
|---|---|---|
| EMA Aligned | 1,064 | 60.4% |
| MACD Bullish | 571 | 32.4% |
| RSI Bullish | 524 | 29.7% |
| Near 52W High | 121 | 6.9% |
| MACD Crossover ↑ | 92 | 5.2% |
The frequencies vary by more than an order of magnitude. EMA alignment is a majority condition; a MACD crossover in the last few sessions applies to one stock in twenty.
Why frequency matters more than the name
A condition present in 60% of the market cannot, by construction, be selective. Whatever EMA alignment tells you, it does not narrow the field. A condition present in 5% might be selective — though rarity and usefulness are different properties, and our research has repeatedly found that rarity did not translate into forward edge.
We publish the counts because a signal without its base rate is uninterpretable. "This stock shows EMA Aligned" sounds like information until you know that a thousand others do too.
Signal count, and why more is not obviously better
| Signals present | Stocks | Share |
|---|---|---|
| 0 | 408 | 23.2% |
| 1 | 685 | 38.9% |
| 2 | 311 | 17.7% |
| 3 | 264 | 15.0% |
| 4 | 85 | 4.8% |
| 5 | 9 | 0.5% |
It is tempting to treat a higher count as a stronger reading. We tested that directly and the relationship between signal count and forward excess return was not distinguishable from zero — a null result we published rather than dropped.
There's a structural reason to expect this. The signals are not independent. EMA alignment, MACD bullishness and RSI strength all measure closely related things about the same recent price move, so stacking them mostly counts the same evidence several times.
Why there is no "breakout" label
Because it would imply a threshold event with a forward implication, and we have neither. A stock closing above a recent range boundary is a describable fact; calling it a breakout adds a story about what happens next that our own measurements don't support.
Method
Each signal is a named boolean condition evaluated on end-of-day data: moving-average ordering, MACD histogram state and crossovers, RSI bands, distance from the 52-week high, and relative volume. The count is simply how many are true. There is no weighting and no composite score in the published scanner output.
Read them as filters, not as votes
The useful way to use the list is to find stocks meeting a specific condition you care about, with the base rate in hand so you know how selective that condition is. The unhelpful way is to treat the count as a strength meter, because the components overlap and the count didn't measure up when we tested it.
Key takeaways
- EMA Aligned appears on 60.4% of stocks; MACD Crossover on 5.2%.
- A signal without its base rate is uninterpretable, so we publish the counts.
- 39% of stocks show exactly one signal; only 0.5% show five.
- Signal count showed no measurable relationship to forward excess return.
- The signals overlap heavily, so stacking them counts the same evidence repeatedly.
See these ideas on real stocks
StockLearn runs this read on ~2,000 NSE stocks every evening. Nifty 50 is free, no login.
Browse today's scan →This guide is educational and explains how StockLearn interprets common technical indicators, using illustrative examples. It is not investment advice or a recommendation to buy or sell any security.