How NepseIQ Works

NepseIQ uses a combination of technical indicators and algorithmic analysis to generate signals and insights. This page explains our methodology so you can make informed decisions.

📊 Data Source

• Source: All data comes directly from the Nepal Stock Exchange (NEPSE) official APIs
• Refresh Rate: Every 60 seconds during market hours (Mon–Fri, 11:00–15:15 NPT)
• Historical Data: OHLCV (Open, High, Low, Close, Volume) saved daily for each stock

📈 Technical Indicators

RSI (Relative Strength Index)

RSI measures the speed and magnitude of price changes on a scale of 0–100. We use the standard 14-day period.

• Below 30: Oversold — the stock has been heavily sold and may bounce back
• Above 70: Overbought — the stock may be due for a pullback
• RSI is one factor, not a standalone decision tool

SMA (Simple Moving Average)

We calculate 20-day and 50-day SMAs to detect trend direction and crossovers.

• Golden Cross: 20-day SMA crosses above 50-day SMA — potential bullish trend
• Death Cross: 20-day SMA crosses below 50-day SMA — potential bearish trend

Volume Analysis

We compare today's volume against the 20-day average volume.

• Volume Spike (≥2x average): Unusual activity — could indicate institutional interest, news, or a breakout

52-Week Range

We track how close a stock is to its 52-week high or low.

• Near 52W High (within 3%): Could break out or face resistance
• Near 52W Low (within 2%): Could be value or a falling knife

🧠 AI Assistant (IQ)

IQ uses the Groq AI API with curated NEPSE context to provide conversational analysis.

• IQ receives real-time market data (index, gainers, losers, sectors, stock-specific OHLCV)
• Responses include structured format: Trend, Momentum, Volume, Support, Resistance, Risk, Confidence
• IQ never gives direct buy/sell advice — it uses terms like 'watchlist candidate' or 'needs confirmation'
• A disclaimer is always shown: 'Not financial advice. AI can be wrong. Verify before trading.'

⚠️ Important Disclaimers

• All signals are algorithmic indicators, not recommendations
• Technical analysis works best when combined with fundamental analysis
• Past performance does not guarantee future results
• NepseIQ is not a registered financial advisor
• Always do your own research (DYOR) and consult a professional before investing