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How to Read Breakdowns

A quick guide to understanding each section of a breakdown page

What You'll Find on a Breakdown Page

Each breakdown shows our AI's price prediction for a stock, ETF, or mutual fund, along with supporting data to help you make informed decisions. The page contains 8 key sections that you can expand, collapse, and reorder by dragging.

1. Price Forecast Chart

What it shows: Our AI's predicted price path for the next 30 days/weeks/months

Screenshot placeholder: Price forecast chart showing mean prediction line and confidence bands

How to read it:

  • Purple line: The predicted average price path
  • Shaded area: The confidence range (where price is likely to fall)
  • Trend direction: Upward = bullish prediction, Downward = bearish
  • Band width: Narrow = high confidence, Wide = more uncertainty

What to look for: Is the prediction going up or down? How confident is the model (narrow vs wide bands)?

2. Forecast Data Table

What it shows: Detailed numbers behind the chart for each day/week/month

Screenshot placeholder: Forecast table with columns for Day, Mean Price, Mean Return %, Percentiles, and Confidence

How to read it:

  • Mean Price: Expected price on that day (green = up, red = down)
  • Mean Return %: Expected gain or loss from current price
  • 10th/90th Percentile: Worst-case and best-case scenarios
  • Confidence: How reliable that specific prediction is

What to look for: Expected returns at different time points, and how wide the best/worst case range is.

3. Sentiment Analysis

What it shows: What people are saying about this stock in news articles and social media

Screenshot placeholder: Sentiment panel showing news sentiment, social sentiment, and combined score with gauge bars

How to read it:

  • Combined Sentiment Score (0-1): 0 = very negative, 0.5 = neutral, 1 = very positive
  • News Sentiment: Professional analysts and financial media
  • Social Sentiment: Retail investors on Reddit and forums
  • Confidence %: How much data backs up the score (more articles/posts = higher confidence)

What to look for: Is the overall sentiment positive or negative? Do news and social media agree? Is there enough data (high confidence)?

Learn More About Sentiment

4. Financial Analysis

What it shows: The company's financial health based on SEC filings (not available for all assets)

Screenshot placeholder: Financial analysis panel showing risk level, health score, and recommendation badges

How to read it:

  • Investment Risk: LOW (safe) to HIGH (risky)
  • Financial Health Score: 0-100% (higher is better)
  • Recommendation: STRONG BUY, BUY, HOLD, CAUTION, or SELL
  • Key Ratios: Debt-to-equity, current ratio, returns on assets/equity
  • Strengths/Concerns: Bullet points highlighting what's good or bad

What to look for: Is the company financially healthy? Does it have manageable debt? Is it profitable?

Learn More About Financial Indicators

5. Historical Price & Volume

What it shows: Recent price movements and trading volume

Screenshot placeholder: Candlestick chart with green/red candles and volume bars below

How to read it:

  • Green candles: Price went up that day/week/month
  • Red candles: Price went down
  • Candle body: Opening price to closing price
  • Wicks (lines): High and low prices reached
  • Volume bars: How many shares were traded (taller = more activity)

What to look for: Is the price in an uptrend or downtrend? Is volume increasing (shows strong interest)?

6. MACD Indicator

What it shows: Momentum indicator showing if the trend is strengthening or weakening

Screenshot placeholder: MACD chart with MACD line, signal line, histogram, and zero line

How to read it:

  • Blue line (MACD): The main momentum line
  • Orange line (Signal): Helps identify buy/sell signals
  • Histogram (bars): Distance between MACD and Signal lines
  • Zero line: Above = bullish, Below = bearish

What to look for:

  • MACD crossing above Signal = potential buy signal
  • MACD crossing below Signal = potential sell signal
  • Growing histogram = strengthening momentum

Learn More About Technical Indicators

7. RSI Indicator

What it shows: Whether the stock is overbought (too high) or oversold (too low)

Screenshot placeholder: RSI chart showing line oscillating between 0-100 with 30 and 70 threshold lines

How to read it:

  • RSI > 70: Overbought - price may pull back soon
  • RSI 30-70: Normal range
  • RSI < 30: Oversold - price may bounce back soon

What to look for: Extreme readings (above 70 or below 30) suggest the price might reverse direction.

Learn More About Technical Indicators

8. AI Trading Bot Results

What it shows: How our AI trading bot has performed on this stock (paper trading, not real money)

Screenshot placeholder: RL bot card showing total return, win rate, Sharpe ratio, and current position

How to read it:

  • Total Return: Overall profit/loss percentage
  • Win Rate: Percentage of profitable trades
  • Sharpe Ratio: Risk-adjusted returns (higher is better, >1 is good)
  • Max Drawdown: Worst loss from peak (lower is better)
  • Current Position: Is the bot currently holding (long) or in cash (flat)

What to look for: Positive returns and high win rate suggest the bot's strategy is working. If the bot is currently long, it aligns with a bullish forecast.

Learn More About RL Trading

Quick Tips

Best Practices

  • Look for alignment across multiple sections
  • Pay attention to confidence levels
  • Consider both fundamentals (financial health) and technicals (charts)
  • Check if sentiment supports the price prediction

Common Mistakes

  • Don't rely on just one section
  • Don't ignore low confidence warnings
  • Don't forget predictions aren't guarantees
  • Don't overlook financial red flags
Remember: Breakdowns are analytical tools, not financial advice. All trading involves risk. Always do your own research and consider consulting a financial advisor.