What Are Convergence Signals?
How iGotFomo detects when multiple independent market signals align on the same stock
A single market signal can be noise. But when 3, 4, or 5 independent signals all flag the same stock at the same time — that's convergence. It means something unusual is happening that multiple data sources independently detected.
The 8 Signal Types
- Options OI Anomaly — Unusual open interest buildup on specific strikes (5σ threshold)
- Call/Put Ratio Extreme — Abnormal skew in call vs put volume or open interest (2.5σ)
- Insider Accumulation — Corporate insiders buying shares over trailing 12 months
- Dark Pool Anomaly — Off-exchange trading volume deviating from normal patterns (2σ)
- GEX Anomaly — Gamma exposure imbalance suggesting dealer hedging pressure (score ≥ 3)
- Short Interest Spike — Rapid increase in short float percentage (2σ z-score)
- Unusual Options Flow — Premium sweeps and large block trades flagged by flow analysis
- 52-Week Low Proximity — Stock trading within 10% of its 52-week low
How Scoring Works
Each stock receives a convergence score from 0-100 based on: • Number of active signals (more signals = higher score) • Signal diversity across groups (options, institutional, technical) • Individual signal strength (z-scores and statistical significance) • Directional agreement (do signals agree on direction?) Stocks are rated: HIGH CONVICTION (80+), CONVERGING (60-79), EMERGING (40-59), MONITORING (20-39), or QUIET (0-19).
Live Convergence Rankings
Why Convergence Matters
Individual signals have noise. A single insider buy could be routine. One unusual options trade could be hedging. But when insiders are buying, options flow is bullish, and dark pools show accumulation — all at the same time — it dramatically reduces the probability of coincidence. This is the core thesis: independent confirmation from unrelated data sources provides higher-conviction opportunities than any single indicator.