How to Read a Smart Money Confluence Score

A Score Is a Research Index, Not a Forecast

Meridian's Smart Money Score summarizes available public signals into a common ranking view. Its purpose is to help users locate tickers with more reported activity to inspect. It is not a probability of profit, a valuation, a price target, or a recommendation.

Read the Components Before the Number

The useful part of a score is the evidence behind it. Review which source categories are present, whether they point in the same direction, when each source was updated, and whether any source is unavailable. A high aggregate number built from delayed or incomplete records can still be a poor basis for a current conclusion.

Compare Sources on Their Own Terms

Each source answers a different question. Form 4 records describe reported insider transactions. STOCK Act reports describe disclosed congressional transactions. A 13F filing is a delayed holdings snapshot. Dark-pool statistics describe off-exchange activity without identifying intent. ETF disclosures describe fund holdings or trades under the issuer's reporting process. None of these records proves future performance.

Why the Detailed Formula Is Not Public

Publishing internal calibration would encourage mechanical use and make the display easier to game. The public product instead exposes the contributing source labels, timestamps, and details needed for independent review. The score should be treated as navigation through evidence, not as a substitute for that evidence.

Questions to Ask

• Are the underlying records current enough for the question being studied?
• Are multiple sources genuinely independent, or are they reacting to one event?
• Does the direction reflect an observable transaction or an interpretation?
• What relevant source is missing or unavailable?
• What company-specific or market-wide information could outweigh the disclosures?

Important Limits

The score does not prescribe an entry, exit, allocation, stop, or alert action. It does not account for every security, asset class, liability, tax circumstance, or investor objective. Use it to organize further research and consult qualified advice where appropriate.