Diamond Score
Diamond Score is a proprietary quantitative metric that measures how a security’s closing price is positioned within defined historical ranges across multiple timeframes.
It is descriptive of price positioning and does not predict future performance.
Timeframes Evaluated
Diamond Score evaluates four rolling time intervals:
- 5-day
- 20-day
- 50-day
- 200-day
Each timeframe is calculated independently using rule-based methods.
Conceptual Framework
For each timeframe:
- The model identifies the highest and lowest prices within the period.
- The most recent closing price is measured relative to that range.
If the closing price is near the top of the range, the timeframe receives a higher proportional value. If the closing price is near the bottom, the timeframe receives a lower proportional value.
Each timeframe contributes equally (25%) to the final Diamond Score.
The result is a normalized value representing multi-timeframe price positioning.
Visual Representation
Diamond Score is displayed visually using 10 diamonds:
- Grey diamonds represent lower proportional range positioning.
- Gold diamonds represent higher proportional range positioning.
The visual format allows quick comparison across securities.
Relationship to Other Metrics
Diamond Score is designed to complement other model-derived metrics.
- Composite Score measures short-term price behavior.
- Diamond Score measures multi-timeframe range positioning.
Each metric evaluates a different quantitative dimension.
Important Note
Diamond Score reflects historical price positioning only. It does not constitute investment advice, and past performance does not guarantee future results.