METHODOLOGY

How ChartDNA grades a trade setup

No black box. Here is exactly what Neural Core evaluates, how the A+ → WAIT grade is built, and — importantly — what it is not.

One indicator lies. Seven have to agree.

Most tools read a single signal and call it. The problem: MACD can say buy while RSI says overbought and structure says lower-high. ChartDNA scores seven independent confluence factors and only calls a setup A+ when they line up. When they conflict, the grade drops — and if it does not clear an A, Neural Core tells you to WAIT.

The seven factors

FactorWhat it asks
Trend alignmentIs the setup with the dominant trend across timeframes, or fighting it?
Key level proximityHow close is entry to meaningful support/resistance and pivots?
Pattern qualityIs there a clean, recognizable structure — or noise?
MomentumIs momentum actually backing the direction, or diverging?
Market structureHigher highs/lows, breaks of structure, order flow integrity.
Multi-timeframe confirmationDoes a higher timeframe agree, or contradict the entry?
Risk / rewardDoes the math work before anything else is considered?

Mode-specific weighting

A 1-minute scalp and a daily swing are not the same problem, so the factors are weighted differently per mode. In Scalp mode momentum carries more weight because you need immediate directional pressure; in Risk mode the risk/reward math dominates because if the math does not work, nothing else matters. Each mode recalibrates all seven factors to how professionals actually evaluate setups on that timeframe.

The grade

The factors combine into a Setup Quality Score. Roughly: A+ (85+) everything aligns, A (75+) strong, B (65+) tradeable with caution, C (55+) weak, WAIT below that — sit on your hands. Every graded setup also returns an entry, a stop-loss, three take-profit targets and the risk/reward.

Live data, not stale screenshots

When you search a pair, ChartDNA pulls current market data at analysis time and computes levels from it. When you upload a screenshot, it reads the chart you provide. Either way you get the same structured output.

What this is not

ChartDNA is an educational technical-analysis tool, not financial advice, not a signals service, and not a bot that trades for you. A grade is a probability read on structure — not a promise. It does not know your risk tolerance, your account, or tomorrow's news. Every decision is yours. We deliberately do not publish an unverifiable "accuracy %"; a public, auditable track record is on our roadmap.

Written by George Vaida, founder of ChartDNA. Last updated 2026-07-16.

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