The Chaikin Power Gauge is the backbone of the Chaikin Analytics system. It provides a clear, color-coded rating that reflects the likely direction of a stock or ETF over the next 1 to 6 months—based on a combination of technical and fundamental analysis.

There are two types of Power Gauge ratings:

• Stock Ratings
• ETF Ratings

Each serves a different purpose, but both are built to help you quickly assess potential strength or weakness.

The Power Gauge Stock Rating

The Power Gauge stock rating combines 20 different factors into a single rating, designed to forecast a stock’s potential to outperform or underperform the market. The model has been independently back-tested and has delivered consistent results since it launched in 2011.

The 4 Main Categories of the Model:

• Financial Metrics – balance sheet and valuation strength
• Earnings Performance – earnings surprises, trends, and revisions
• Technicals – price trends and strength
• Expert Sentiment – analyst ratings, short interest, and insider activity

Each factor is weighted and combined to produce a daily rating for every stock with at least one year of trading history and consistent earnings data.

📄 Want more detail? Read: How Is the Chaikin Power Gauge Rating Calculated?

The Rating Scale

Each stock is rated on a five-point scale:

• Very Bullish – likely to outperform
• Bullish
• Neutral
• Bearish
• Very Bearish – likely to underperform

These ratings update daily and reflect new market data.

What Do Neutral+ and Neutral– Mean?

You may also see ratings like Neutral+ or Neutral–. These are temporary adjustments made through the model’s technical overlay:

• Neutral+: A Bullish stock that has fallen below its long-term trend
• Neutral–: A Bearish stock that has risen above its long-term trend

These help the rating better reflect current technical conditions and act as a safeguard during uncertain market activity.

Learn more in: What Do Neutral+ and Neutral– Mean?

How the Rating Is Calculated

The Power Gauge is updated daily. Every weekday, the model pulls in fresh data and recalculates the rating using the 20-factor model. End-of-week ratings are saved as historical values.

The rating system is responsive to market conditions:

• In flat markets, stock ratings are distributed evenly.
• In strong or weak markets, ratings may lean more Bullish or Bearish overall.

All calculations are handled by Portfolio123, which sources financial data from S&P Compustat.

⚠️ Note: Recent IPOs and ETFs will not have a stock Power Gauge Rating due to limited data history.

How to Use the Power Gauge Rating

The Power Gauge helps investors quickly assess the outlook of a stock. Here’s how it’s commonly used:

• Bullish or Very Bullish stocks: Consider as potential buys or holds
• Bearish or Very Bearish stocks: May signal stocks to avoid, reduce, or monitor closely

You don’t need to rely on the Power Gauge alone. It works best when used with other Chaikin tools, such as:

• Money Flow (shows buying/selling pressure)
• Relative Strength (compares stock to the market)
• Overbought/Oversold (helps with timing your trades)

📘 Learn more about how to interpret these indicators in: How to Read a Chaikin Chart
📉 For tips on identifying warning signs in a stock, see: Detecting Stock Warnings Using the Power Gauge

The Power Gauge ETF Rating

The Power Gauge ETF Rating is based on a combination of:

• Our proprietary stock model
• Technical analysis
• A deep look at the ETF’s holdings

Unlike other ratings that only consider price action, the Power Gauge ETF Rating takes into account the Power Gauge ratings of the individual stocks inside the ETF.

ETF Rating Components

Each ETF is rated on the same five-point scale as stocks—from Very Bearish to Very Bullish. The rating is built from three parts:

Technical Rank

• Measures the ETF’s price strength versus other U.S.-listed ETFs.

U.S. Equity Power Gauge Rating (Unweighted)

• Shows the average Power Gauge Rating of all U.S. stocks in the ETF.

U.S. Equity Power Gauge Rating (Weighted)

• Shows the average rating of stocks in the ETF, weighted by how much each stock makes up of the ETF’s holdings.

Learn more in: ETF Ratings Explained