The Economic Question
What does the current price path say about trend, momentum, participation, volatility and practical risk levels? Technical evidence operates over days and months. It refines entry, sizing, stop distance and review levels. It does not forecast long-run cash flow, and it does not override factor or valuation evidence.First-Principles Derivation
Price aggregates information and positioning. Moving averages describe trend state. RSI and MACD describe momentum from different angles. Volume tests participation. ATR and realized volatility scale risk. Support and resistance are observed zones where prior supply and demand interacted, not precise physical laws.ATR as a share of price = average true range / current price
Distance to a reference level = (reference level − current price) / current price
An overbought reading is a warning about asymmetry, not a sell signal. An oversold reading is a warning about stress, not a buy signal. Trends can remain stretched for longer than a mechanical oscillator expects.
Model Mechanics
Parallax calculates these indicators directly from supplied price and volume history. The supplied metrics provide the basis for narrative interpretation.
A Report Case
Consider a large-cap security showing a short-term recovery inside a weaker long-term trend. It sits several percent above its 20-day and 50-day averages, but below its 200-day average. Its 30-day return is strongly positive while its 90-day return is negative. RSI is elevated but not extreme, MACD is constructive, price sits just below observed 30-day resistance and well above support, and annualized volatility is high. The disciplined conclusion is “improving short-term timing within an incomplete long-term repair.” It does not raise fair value. It says that an investor holding a fundamental thesis faces nearby resistance, elevated volatility, and a long-term trend that still needs confirmation.Interpretation Note
A MACD crossover describes a change in price momentum. It informs timing alongside the separate evidence on margins, cash flow, cost of capital and intrinsic value.
How to Assess the Result
State the time horizon before interpreting the chart. Compare the technical trend with the Momentum score, and the volatility regime with the Defensive score. Use support and resistance as bands rather than exact levels. Scale stop distance and position size to ATR. Check that the interpretation is supported by the indicators shown.When to Reassess
Price breaks the named support or resistance band with contrary participation; moving-average structure changes; momentum reverses; or volatility expands enough to invalidate the position-size assumption. Technical falsifiers update timing. They do not mechanically rewrite the DCF.How Parallax Applies This
Parallax uses technical analysis for timing, execution and risk management. It states explicitly whether the chart confirms the factor view, complicates it, or argues for waiting. The technical section produces no standalone recommendation and no price target.Reconciling Evidence
Assigning each method its role when the methods disagree.
Risk Management
The portfolio-level risk framework.