The Power Gauge is designed to help you spot signs that a stock may be weakening. While many investors focus on finding what to buy, it's just as important to understand when a stock might be losing strength.

Below are four key warning signs the Power Gauge is built to highlight. These signals are best used together—not individually—to get a full picture of what’s happening with a stock.

Power Gauge Rating Turns Bearish

When the Power Gauge changes to Bearish or Very Bearish, that means the model sees signs the stock may underperform over the next 1 to 6 months.

If the rating turns Neutral, it doesn’t always mean something is wrong. If other indicators like Money Flow and Relative Strength are still strong, the rating change might not require action.

Relative Strength Turns Red

This shows how the stock is doing compared to the S&P 500. When the indicator turns red, it means the stock has started underperforming the market.

This becomes more meaningful when paired with a Neutral or Bearish rating.

Bearish Money Flow at a 52-Week High

Sometimes a stock reaches a new high, but the Chaikin Money Flow stays red. This may mean that big investors are selling while the price is still rising.

The Power Gauge includes this signal to help spot when price momentum is not supported by strong buying activity.

From Oversold to Overbought

The Overbought/Oversold indicator shows where a stock is in its typical price range.

If the stock was recently Oversold (below 30) and now shows as Overbought (above 70), it may be nearing a short-term peak. This is especially useful for short-term traders.

Putting It All Together

These tools are most useful when viewed together. That’s why the Pre-Trade Checklist (available with Power Pulse Premium and above) includes them in one place—so you can see the full picture at a glance.

You can also find each indicator on the chart view of any stock. Use the chart to explore how these features show up over time.