Signal Glossary
APEX produces exactly six signal types. Each has a precise definition, clear conditions for when it fires, and conditions for when it does not. Understanding these signals is the foundation of using Toombs Terminal correctly.
Signal Definitions
BUY CALL
A bullish setup has qualified. All five scoring modules confirm — macro supports it, market structure is right, there is a catalyst, technicals are clean, and the options chain is tradeable. Score is 75 or above.
When it fires
All five modules pointing bullish. Score ≥ 75. Risk engine approved.
When it does not fire
Score below 75. Options chain unacceptable. Macro event imminent. Price extended.
BUY PUT
A bearish setup has qualified. Same five-module confirmation but in the bearish direction. Price is breaking down, structure is weak, and the options chain supports a put position.
When it fires
All five modules pointing bearish. Score ≥ 75. Clean breakdown structure confirmed.
When it does not fire
Score below 75. No defined breakdown level. Options chain illiquid.
BUY STOCK
A strong directional setup exists but the options chain is unsuitable — spread too wide, liquidity too low, IV too elevated, or premium is unreasonable. The underlying stock is the better vehicle.
When it fires
Strong setup qualifies but options are rejected by the options quality module.
When it does not fire
Options chain is acceptable. Score below 75.
HOLD
An existing open position remains valid. The original thesis has not broken. Technical structure is intact. No reason to exit. This signal only appears when a position is already open.
When it fires
Open position exists. Thesis intact. Technicals valid. No negative catalyst.
When it does not fire
No open position. Thesis has broken. Stop level hit.
SELL
An existing open position must be closed immediately. The thesis broke, the stop was hit, momentum reversed, or event risk makes holding unacceptable. This is an exit signal — act on it now, not eventually.
When it fires
Stop loss hit. Thesis invalidated. Momentum reversed. Event risk elevated.
When it does not fire
Never delay a SELL signal. If APEX says SELL, exit.
WAIT
No qualifying setup exists right now. This is not a failure — it is the correct professional response to an unclear or unqualified market. WAIT should appear more than any other signal. A day with no trade is a day capital was preserved.
When it fires
Score below 75. Conflicting signals. Macro event imminent. Price extended. Options unacceptable.
When it does not fire
WAIT is always valid. Never trade just to avoid WAIT.
Market Regimes
Risk-OnFavorable conditions for taking positions. Price moving up with strength, institutional money flowing in, macro backdrop supportive. Bullish setups can be considered when score qualifies.
Risk-OffUnfavorable conditions. Price declining, selling pressure, capital rotating out. Avoid bullish positions. Bearish setups may qualify if score meets threshold.
NeutralNo clear directional bias. Market is indecisive. Neither bullish nor bearish setups have conviction. Requires additional confirmation before acting.
ChoppyPrice moving erratically with no clean trend. High noise, low signal. WAIT is almost always the correct response in a Choppy regime.
Event RiskA major macro event is imminent — FOMC, CPI, NFP, earnings. Unpredictable volatility expected. Reduce position size or issue WAIT until the event passes.
Score Thresholds
85–100Strong SetupAll modules aligned with high conviction. Highest priority signal.
75–84Tradeable SetupMeets minimum threshold. Trade is valid with proper risk management.
60–74Watch OnlySetup developing but not yet ready. Monitor for improvement.
Below 60WAITNo qualifying setup. Do not trade.
Important: All signals are for informational and educational purposes only. No signal constitutes financial or investment advice. Human review is required before any trading decision. Options trading involves substantial risk of loss and is not suitable for all investors.