Common questions about our methodology and technical indicators.
- What is RSI in stocks?
- RSI (Relative Strength Index) is a momentum indicator that measures the speed and magnitude of price changes. It ranges from 0 to 100. Values below 30 typically indicate oversold conditions (potential bounce), while values above 70 indicate overbought conditions (potential pullback). Whystock uses a 14-day RSI.
- How do I read MACD?
- MACD (Moving Average Convergence Divergence) shows the relationship between two moving averages. When the MACD line crosses above the signal line, it suggests bullish momentum. When it crosses below, it suggests bearish momentum. Whystock uses the standard 12, 26, 9 settings.
- How is fair value calculated?
- Whystock uses a trailing P/E model adjusted for ROE: Fair P/E = 18 + (ROE × 20). Fair value = (current price ÷ trailing P/E) × fair P/E. The upside/downside percentage shows how far the current price is from this estimate.
- What is the Whystock Score?
- The Whystock Score (0–100) is a composite of RSI, Sharpe ratio, and trend position (price vs 200-day SMA). Higher scores suggest better risk/reward. It is not a buy/sell recommendation but a summary of technical conditions.
- Where does Whystock get its data?
- Whystock uses Yahoo Finance for price data, fundamentals, and news. Technical indicators (RSI, MACD, SMA, Sharpe, etc.) are computed from raw price history. AI narratives are powered by Google Gemini.