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📈 Spike Stock Analytics

7-Factor Convergence System

Convergence methodology focused on identifying individual stocks with high short-term breakout potential from base-building zones
Excludes ETFs/leverage products | Single-stock universe only | 250-point scoring model

Reference date: 2026.02.22 v1.0 breakout-focused model Operates independently from the 4-framework suite

Model Philosophy

Why 7-Factor?

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Triple-Convergence Principle

Entry is considered only when price compression, abnormal volume, and options signals converge simultaneously. No single-indicator dependence.

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Quantitative Scoring

Each factor is numerically scored on a 250-point scale to reduce emotion and enforce consistency.

Base-Zone Focus

Instead of chasing highs, the model targets dislocated base zones where risk/reward can be structurally superior.

🛡️

Risk-First Selection

Pre-define stop loss (-8%) and target (+18~20%) before entry. Trade only setups with favorable payoff asymmetry.

Score Structure

250-point total | factor-based weighting

250
Maximum total score (7 factors)
F1. Price Compression
40pt
F2. Volume Signature
35pt
F3. Short Interest Structure
35pt
F4. Options Anomaly
40pt
F5. Insider/Institutional Accumulation
25pt
F6. Technical Trigger
40pt
F7. Catalyst Calendar
35pt

Detailed 7-Factor Criteria

Core measurement metrics by factor

F1
Price Coiling
Energy build-up zone after volatility contraction
40
max
Bollinger Band Width 6-month low ✓
MA Compression 5/20/60 convergence
ATR Change (60D) -40%+ vs average
▲ BB-width low + MA convergence = bullish ● partial convergence = neutral ▼ volatility expansion = bearish
F2
Volume Signature
Accumulation and sell-pressure exhaustion
35
max
5D/20D Volume Ratio 30~60% zone ✓
OBV Direction Price↓ / OBV↗ divergence
Down-Candle Volume Exhaustion candle pattern check
▲ OBV divergence = accumulation signal ▼ high-volume selloff = distribution
F3
Short Interest Structure
Short squeeze potential assessment
35
max
Short Float % >=10% = squeeze potential
Days to Cover >=5 days = high-risk setup
Short Position Trend rising during price base
▲ high short% + base action = squeeze setup ● below 6% = limited squeeze potential
F4
Options Anomaly
Detecting smart-money option positioning
40
max
OTM Call Volume Spike 200%+ vs average = anomaly
PCR (Put-Call Ratio) 0.7~1.0 = constructive bullishness
OI Distribution by Expiry gamma concentration zone
Implied Volatility Trend post-compression expansion setup
▲ OTM call surge + falling PCR = breakout precursor ▼ put surge = defensive hedging demand
F5
Insider/Institutional Accumulation
Executive conviction and institutional build-up
25
max
Open-Market Insider Buy $100K+ = meaningful
Cluster Buying (Multiple Executives) 2+ insiders = strongest signal
Institutional 13F Position Shift new entry + size increase
Dark Pool Block Trades 3x+ vs average
▲ CEO + CFO concurrent buying = highest-conviction signal ● RSU/option exercises are excluded
F6
Technical Trigger
Entry-timing optimization signals
40
max
Position vs 52-Week Low +5~15% = base zone
RSI (14D) rebound from RSI <= 30
MACD Histogram golden-cross formation
MA Trend Flip 5D MA > 20D MA breakout
▲ RSI rebound + MACD golden-cross = entry trigger ▼ bearish MA alignment persists = wait
F7
Catalyst Calendar
Presence of clear breakout catalysts
35
max
Earnings Date within 2~6 weeks
New Product/Service Launch conference/event catalysts
Dividend / Buyback Events shareholder return expansion
Restructuring / M&A Announcements valuation re-rating potential
▲ Earnings + payout catalyst inside 3 weeks = high-conviction trigger ● no confirmed catalyst = score penalty ▼ earnings delay / executive turnover = event risk

Grade Bands & Noise Filters

Score interpretation and screening constraints

Score Range Grade Action Guideline
200+ 🔴 HIGH ALERT Immediate monitoring + small pilot entry
170~199 🟢 STRONG BUY Aggressive buy near planned entry zone
140~169 🔵 BUY Start 2~3 tranche scaling entries
110~139 🟡 WATCH Watchlist candidate; await confirmation
<=109 ⚪ PASS Exclude for current cycle

Open-Market Buys Only

Exclude stock-option exercises and RSU grants. Only direct cash purchases by executives are counted for F5.

Triple-Convergence Requirement

At least 2 of F1 (compression), F4 (options anomaly), and F6 (technical trigger) must show bullish signals before entry review.

Single-Stock Universe Only

ETFs and leveraged/inverse products are fully excluded. This model is optimized for base-zone breakouts in individual equities.

Position Risk Management

Must be defined before entry

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Entry Zone

Buy only inside the planned entry range. If price breaks -3% below the zone, exit intraday and wait for re-entry setup.

3-tranche scaling suggested
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Stop Loss

Automatic exit at -8% from entry without exception. Emotion and hope must not override stop execution.

-8% hard rule
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Target

Take partial profits at 50% progress to target, then trail the remainder with 5-day MA exit logic.

+18~20% objective
📌 Disclaimer
This document is a methodology overview for educational and research purposes within the 7-Factor Convergence System.
It is not investment solicitation or financial advice. All real trades must be executed under your own judgment and responsibility.
Equity trading carries principal-loss risk. Make decisions prudently.