User Playbook
Understanding how Fintech Signals works
1 What is Fintech Signals?
Fintech Signals is an End-of-Day (EOD) Swing Trading Scanner designed to identify high-probability trading setups. Unlike real-time trading systems, our signals are generated after market close, making them ideal for investors who prefer a more deliberate approach to trading.
Key Philosophy
"Sniper-style" trading — we prioritize high win rate over high frequency. Expect more WAIT signals than action signals, as the system only triggers when multiple conditions align.
2 Signal Generation: Veto System
Unlike traditional systems that average indicators, Fintech Signals uses a Veto System — a layered approach where any critical layer can reject (veto) a signal.
Market environment check. For US markets: VIX must be below 25 and SPY above its 20-day moving average. For Taiwan: TWII must be above its 20-day MA. If conditions are unfavorable, all signals are forced to WAIT.
Smart Money Concepts (SMC) structure analysis. Identifies market structure through swing points and break of structure (BOS). A bearish structure vetoes all LONG signals; a bullish structure vetoes all SHORT signals.
Volatility compression detection using Bollinger Bands and Keltner Channels. When "Squeeze ON" (BB inside KC), the system waits for volatility release before generating signals.
Final scoring combines SMC, Squeeze momentum, and institutional flow (Taiwan) or volume profile (US). Score ranges from -100 to +100, determining signal confidence.
Score Calculation (-100 to +100)
The final score is calculated by combining three components with different weights:
BULLISH = +40 pts, BEARISH = -40 pts, NEUTRAL = 0 pts
Raw momentum × 3, capped at ±30 pts
Chip score × 0.3, max ±30 pts (TW: institutional, US: volume profile + insider)
Score Interpretation
Signal Directions
Bullish setup confirmed
Bearish setup confirmed
Conditions not aligned
3 Multi-Timeframe Analysis (MTF)
The system analyzes four timeframes to confirm trend alignment. Clicking each timeframe button in the signal modal switches the chart view.
Long-term trend
Primary signal
Entry timing
Fine-tuning
MTF Alignment Categories
4 Trade Setup
When a LONG or SHORT signal is generated, the system provides specific trade parameters:
Entry Zone
The recommended price range for entering the trade. Based on Order Block levels or ATR calculations.
Stop Loss
The price level to exit if the trade moves against you. Typically set at Entry Zone minus 1 ATR.
Take Profit 1
First profit target at 1.5x the risk distance. Consider taking partial profits here.
Take Profit 2
Second profit target at 2.5x the risk distance. For runners and extended moves.
Invalidation Level
The price level where the trade thesis is completely invalid. Usually placed below the recent swing low (for LONG) or above swing high (for SHORT). If price reaches this level, the original setup is no longer valid regardless of stop loss.
Risk/Reward Ratio
Shows the potential reward relative to risk. A ratio of 2.0 means you could make 2x what you risk. Generally, look for setups with R:R of 1.5 or higher.
Advanced Risk Metrics
Risk Premium
The expected return over risk as a percentage: ((TP2 - Entry) / (Entry - SL) - 1) × 100%
Example: If Risk Premium is 150%, you're targeting 2.5x your risk (1 + 1.5). Higher values indicate better potential returns relative to the risk taken.
Recommended Risk
Suggested position risk as a percentage of your portfolio (0.25% - 2.0%).
Based on signal confidence and R:R ratio. HIGH confidence signals with better R:R may suggest higher risk allocation (1.5-2%), while MEDIUM/LOW confidence suggests more conservative sizing (0.25-1%).
5 Price Zone (Premium/Discount)
The Price Zone indicator shows where the current price sits within the recent swing range, helping identify optimal entry points.
0-50% of range
Favorable for LONG
40-60% of range
Fair value zone
50-100% of range
Favorable for SHORT
Zone Position %
Shows the current price position as a percentage between the recent swing low (0%) and swing high (100%).
Formula:
Zone % = (Current Price - Swing Low) / (Swing High - Swing Low) × 100 Zone Quality Tags
The system automatically evaluates whether your position is in a favorable zone:
6 Technical Indicators
These indicators are shown for reference only — they do not affect the signal generation.
RSI (Relative Strength Index)
Measures momentum on a 0-100 scale. Traditionally, above 70 = overbought, below 30 = oversold.
ADX (Average Directional Index)
Measures trend strength regardless of direction. Higher values indicate stronger trends.
MACD (Moving Average Convergence Divergence)
Shows trend direction and momentum. Golden cross (bullish) when MACD crosses above signal line; death cross (bearish) when it crosses below.
7 Flow Analysis
Different markets use different flow indicators to track smart money movement.
🇹🇼 Taiwan: Institutional Flow
Three major institutional investors tracked: Foreign Investors (外資), Investment Trusts (投信), and Proprietary Dealers (自營商).
🇺🇸 US: Insider Trading (SEC Form 4)
Tracks insider transactions reported to the SEC within the past 90 days. Buy/sell activity from executives (CEO, CFO) carries higher weight than directors.
* Recent 30 days: full weight (1x) | 30-90 days: half weight (0.5x)
* Selling is discounted (0.5x) as insiders sell for various reasons
📊 Volume Profile
For US stocks, volume profile analysis identifies price levels with significant trading activity (POC, Value Area). Price above POC is generally bullish; below POC is bearish.
8 Fundamentals
Basic fundamental data is shown for context only. The signal system is primarily technical.
P/E Ratio (Price-to-Earnings)
Current stock price divided by earnings per share. Lower values may indicate undervaluation.
Forward P/E
P/E ratio based on estimated future earnings. Useful for comparing current valuation to expected growth.
Revenue Growth
Year-over-year revenue growth rate. Positive growth indicates expanding business.
EPS Growth
Earnings per share growth rate. Shows profitability trend over time.
P/B Ratio (Price-to-Book)
Stock price relative to book value per share. Values below 1 may indicate undervaluation.
Profit Margin
Net income as a percentage of revenue. Higher margins indicate better profitability.
Sector
The industry sector the stock belongs to (e.g., Technology, Healthcare, Finance). Sector context helps understand market dynamics and correlation risks.
9 Next-Day Outlook
The Next-Day Outlook provides a short-term forecast for the following trading session based on the current signal analysis, helping users understand the near-term directional bias and key levels to watch.
Important Note
The Next-Day Outlook is a supplementary short-term reference only and does not affect the primary signal direction. It is based on intraday technical structure and is not a guarantee of next-day price action.
Bias
Structure favors upside next session
No clear direction, range-bound expected
Structure favors downside next session
Confidence %
Reflects how reliable the next-day forecast is, determined by multi-timeframe structure alignment and momentum indicators.
Expected Range
The anticipated high and low price range for the next session, calculated using ATR (Average True Range). Higher confidence produces tighter ranges; lower confidence produces wider ones.
Key Level
The most important technical level to watch next session — sourced from FVG (Fair Value Gap), Order Blocks, or swing highs/lows. A price breach of this level often signals an intraday directional shift.
Key Level Types
10 Disclaimer
This is not financial advice. The signals provided are for educational and informational purposes only.
Trading stocks, futures, and other financial instruments involves substantial risk of loss. Past performance is not indicative of future results.
Always do your own research and consider consulting a qualified financial advisor before making any investment decisions. Never trade with money you cannot afford to lose.
The creators of Fintech Signals are not responsible for any trading losses incurred from using this system.