In the Power Gauge Rating, some stocks may display a Neutral+ or Neutral– rating. They appear when a stock's recent price action conflicts with its rating: a Bullish stock that closes below its long-term trend shows Neutral+, and a Bearish stock that closes above it shows Neutral–. 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.

For the rest of the rating calculation, see How the Power Gauge Rating Is Calculated for Stocks.

⚙️ 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, using a proprietary Chaikin Analytics calculation.

If the stock's trend and its rating are out of sync, the overlay changes the displayed rating to Neutral+ or Neutral– so it better reflects current price behavior.

💡 Tip: The long-term trend is the LT Trend line on every Chaikin stock chart. See How to Read the Chaikin Chart to find it.

🟢 What Does Neutral+ Mean?

A stock shows Neutral+ when:

• its raw Power Gauge Rating is Bullish or Very Bullish, but
• it has closed below its long-term trend.

The model still sees the stock positively, but its recent price movement has weakened. Neutral+ stays in place until the stock closes back above its long-term trend.

🔴 What Does Neutral– Mean?

A stock shows Neutral– when:

• its raw Power Gauge Rating is Bearish or Very Bearish, but
• it has closed above its long-term trend.

The stock may be showing early signs of technical improvement, even though the model is still negative. The rating goes back to Bearish once the stock drops back below its trend line.

Why is my Bearish stock still Bearish after closing above its trend?

If the long-term trend line is still falling, a Bearish stock that closes above it does not switch to Neutral–. It stays Bearish, because the broader trend still points to weakness.

🛡️ Why Do 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, and
• smooth out performance during periods of high volatility.

📍 Where Will I See Neutral+ and Neutral–?

• Power Gauge Rating panel: at the top right of a stock or ETF's Power Gauge Rating page. See How to Use the Power Gauge Rating Page to Check a Stock or ETF.
• System Alerts: a move into or out of Neutral+ or Neutral– is listed as a Rating Change (for example, Neutral+ → Neutral). See How to Set Up and Use Alerts in Chaikin Analytics.

ETFs can also show Neutral+ and Neutral–, on their own schedule. See How the Power Gauge Rating Is Calculated for ETFs.