Entry signals describe current technical conditions for a stock — whether the setup looks historically favorable, mixed, or unfavorable for the wheel strategy. Each stock gets two independent signals: one for selling puts (CSP) and one for selling calls (CC).

Signal colors

How CSP & CC signals differ

CSP and CC signals use the same five indicators but read them in opposite directions:

Each indicator contributes a score. The total score determines the signal color and confidence level. A score of −6 or lower gives a Strong Green CSP signal; +6 or higher gives a Strong Green CC signal. Scores near zero produce a yellow (neutral) signal.

Structural trend analysis

In addition to the five core indicators above, each signal is modified by the stock's trend regime. The regime comes from an EMA ribbon — five exponential moving averages (8, 13, 21, 34, 55) read against each other, needing three of the four pairs to agree. That is the same calculation that colours the candles on the ticker chart, so the trend you read here is the trend you can see: green candles for an uptrend, red for a downtrend, amber for sideways.

• 📈 Uptrend— The ribbon is stacked bullish. Pullbacks are buying opportunities. CSP signals get a boost (+2 to +3 pts). The wheel works best here — if assigned, you own shares in a stock that's trending higher.
• ↔️ Sideways— No clear directional trend; price oscillates in a range. CSPs get a small boost (+1), and CCs get a significant boost (+2) because the stock keeps bouncing between support and resistance — ideal for selling premium on both sides.
• 📉 Downtrend— The ribbon is stacked bearish. CSP signals get penalized heavily (+3 to +4 pts toward red) because you'd be catching a falling knife. CC signals also get a slight penalty since your shares are declining.

Swing structure — higher highs and higher lows across 12 months of price history — is read alongside the ribbon as confirmation. When both agree the regime is marked strong; when the ribbon overrules the structure it is marked moderate. That ordering matters: swing structure looks back a year, so a stock that climbed for ten months and then broke down still shows higher highs long after the trend has turned. The ribbon reacts to the break; the structure explains the history.

You'll see the trend badge in the Trend & Support/Resistance card in the stock detail view, and you can filter the whole screener on it — Trend in the Technicals group of the filter panel.

Support & resistance proximity

The system also detects support and resistance zones by clustering nearby swing lows (support) and swing highs (resistance) from the past 12 months. Levels that have been tested multiple times are stronger. Each zone shows its price level and touch count (e.g., “$147.50 · 3x”).

When a stock's current price is within 3% of a zone, the signal score is adjusted:

• Near strong support (3+ touches): CSP gets +3 pts toward green. Buyers have historically stepped in at this level, making a put assignment less likely.
• Near moderate support (2 touches): CSP gets +2 pts.
• Near strong resistance (3+ touches): CC gets +3 pts toward green. The stock has historically turned down at this level, making your covered call more likely to expire worthless.
• Near moderate resistance (2 touches): CC gets +2 pts.

Putting it all together

The ideal CSP entry is an uptrending stock pulling back to a well-tested support level with RSI in the oversold zone. The ideal CC entry is a sideways or uptrending stock rallying into known resistance with RSI in the overbought zone. The reason tags below each signal show you exactly which factors are firing — including trend and S/R readings.

Confidence levels

Reason tags

Below each signal, you'll see colored tags explaining why the signal is what it is — for example, “RSI 34 — oversold” or “-2.1% below 20d SMA”. These aren't just labels; they're the actual technical readings. You can use them to make your own judgment.

Strike recommendations

When a signal is green or yellow, three strike recommendations appear below, one for each risk level. Strikes are selected using Black-Scholes delta targeting within the 30–45 DTE theta decay sweet spot:

Each recommendation shows the specific strike price, expiration date, estimated premium, capital required, and the annualized return on that capital. You can take these numbers directly to your broker.