Neutral+ and Neutral-

In Chaikin Analytics, some stocks may display a Neutral+ or Neutral– rating. These are not separate Power Gauge Ratings, but temporary adjustments made through a process called the technical overlay.

This overlay helps ensure the rating better reflects how the stock is currently behaving, especially in relation to its long-term price trend.

What Is the Technical Overlay?

The technical overlay is the final adjustment made before the Power Gauge Rating is shown on the platform. It compares the raw rating to how the stock is performing relative to its long-term trend line.

That long-term trend is based on a 200-day moving average, but it uses a proprietary calculation unique to Chaikin Analytics.

If a stock’s trend and rating are out of sync, the overlay adjusts the rating to Neutral+ or Neutral– to help reflect real-time price behavior more accurately.

📈 Want to see the long-term trend? It appears as a line on every stock chart in Chaikin Analytics.
Learn where to find it in: How to Read the Chaikin Chart

What Does Neutral+ Mean? 

A Neutral+ rating appears when:

• The raw Power Gauge rating is Bullish or Very Bullish
• But the stock has closed below its long-term trend

This signals that while the model still sees the stock positively, its recent price movement has weakened. The Neutral+ status remains until the stock closes back above the long-term trend.

What Does Neutral– Mean?

A Neutral– rating appears when:

• The raw Power Gauge rating is Bearish or Very Bearish
• But the stock has closed above its long-term trend

This indicates the stock may be showing early signs of technical improvement, even though the model remains negative. The rating will revert to Bearish once the stock drops back below its trend line.

Why These Adjustments Exist

Neutral+ and Neutral– work like circuit breakers. They help:

• Prevent misleading signals when price action conflicts with the model
• Account for real-time shifts in market sentiment
• Smooth out performance during periods of high volatility

Special Case: Falling Trend Exception

If a Bearish stock closes above its long-term trend, it will not switch to Neutral– if the trend line is still falling. In this case, the stock remains Bearish because the broader trend continues to suggest weakness.