Most investors pick stocks based on a story they heard, a tip they read, or a chart that looked interesting. The CLEAR Framework starts somewhere different. The framework evaluates each pillar independently — and each pillar is capable of eliminating a candidate regardless of how well it scores on the others.
The Market Pulse is the first and non-negotiable step. No CLEAR analysis begins until the broader market condition is confirmed. The market does not care how strong an individual stock setup looks — a hostile environment eliminates even the best candidates.
Market Pulse is confirmed every Friday before market close. It operates as a binary control on the entire scan process.
No new entries under any circumstances. Watchlist is built and maintained. Capital is preserved. The framework waits.
Watchlist candidates monitored closely. No full-size entries. Reduced exposure only if conditions improve mid-week.
All five pillars evaluated. High-conviction setups can be entered. Position sizing applied at full scale.
"The publication that tells you when not to trade is the only publication worth reading when every other one is screaming to buy."
The CLEAR Framework works because every pillar asks a fundamentally different question about the same stock. A candidate that scores perfectly on four pillars but fails the fifth is eliminated. There are no partial passes. Every pillar is a gate.
The catalyst is the specific reason institutional capital is entering this stock at this moment. It is not a story. It is not a theme. It is a verifiable, active event that is changing the fundamental or technical picture of the business right now. Without a confirmed catalyst there is no edge — only hope dressed up as analysis.
The catalyst must be active at the time of the scan. A catalyst that fired six months ago is history, not a signal. The framework looks for catalysts that are still in play and still driving accumulation.
The CLEAR Framework does not follow the market. It follows the leaders. The stocks that lead in a recovery lead hardest. The stocks that lag in a rally lag furthest in a sell-off. Leadership is not a prediction — it is a measurement of relative price strength that has already been demonstrated.
A leading stock is outperforming its sector peers and the broader market index over the most recent thirteen weeks. It is trading above both its 50-day and 200-day moving averages. It is recognised by institutional investors as a sector leader — not a follower waiting to catch up.
Price follows earnings. Not always immediately — but always eventually. The CLEAR Framework requires both the quality and the direction of earnings to meet a defined standard. Strong earnings growth that is decelerating is a warning sign. Moderate earnings growth that is accelerating is a setup. The direction of the trend matters as much as the level.
The Earnings pillar is also the only pillar with an automatic disqualifier built in. Any candidate with declining year-over-year earnings is eliminated before any other pillar is evaluated — no exceptions, no overrides.
Individual investors do not move mid-cap stocks. Institutions do. A breakout driven by retail enthusiasm on average volume is a false breakout waiting to fail. A breakout driven by institutional accumulation on 40% above-average volume is a signal that professional money is entering a position — and professional money does not enter a position without conviction.
The Accumulation pillar looks for the fingerprints of institutional buying in the volume pattern. It looks for volume that is significantly above average on up days and below average on down days within the base. That asymmetry — heavy buying, light selling — is the signature of quiet institutional accumulation before a breakout.
A great business with strong earnings and institutional conviction can still produce a poor trade if the entry is extended, the stop is too far, or the target is too close. The Risk/Reward pillar is purely mechanical. It asks one question: does the geometry of this trade meet the minimum standard?
The CLEAR Framework requires a minimum 1-to-2 risk/reward ratio on every setup before entry is considered. This means the potential gain at Target 1 must be at least twice the potential loss at the stop level. Below that ratio, the trade is not entered regardless of conviction on the other four pillars.
Each of the five pillars scores up to 20 points. The total out of 100 determines the conviction level and the action. The CLEAR Score makes the Watchlist Challenge possible — Challengers and Defenders are ranked by score, and the highest score wins the watchlist position every week.
| CLEAR Score | Conviction Level | Action | Market Pulse Required |
|---|---|---|---|
| 85 – 100 | Highest Conviction | Enter on confirmed breakout — full position size | GREEN only |
| 70 – 84 | High Conviction | Enter on confirmed breakout — reduced position size | GREEN or YELLOW |
| 55 – 69 | Watchlist Only | Monitor for improvement. Do not enter. | Any — no entry |
| Below 55 | Eliminated | Removed from scan. Revisit if conditions change materially. | Not applicable |
The full scoring rubric — what scores 20, what scores 10, what scores 0 for each pillar — is published in full at the CLEAR Score page. Nothing is hidden.
Every candidate that passes the CLEAR Score stage is then reviewed through ten independent analytical lenses across two panels. Each lens votes independently — the combined vote count determines the final conviction level. A candidate must receive a minimum of four votes across all ten lenses to qualify for watchlist inclusion.
The ten lenses cover every major dimension of investment analysis — ensuring that no single analytical bias determines the outcome.
See the full selection process — how the CLEAR Framework and the 10-Business-Angle Review combine to produce the weekly watchlist — at the How We Select page.
The framework runs every Friday. The output is available free.
See the CLEAR Framework applied to real stocks every Friday — Subscribe Free →The CLEAR Framework powers both publications. The difference is in the depth of application — and the depth of what the subscriber receives every Friday night.
Important: The CLEAR Framework identifies disciplined, well-structured setups — it does not predict outcomes. A stock that passes all five CLEAR pillars, scores above 85, and receives ten votes in the 10-Business-Angle Review can still result in a loss. The framework is designed to identify quality conditions, not to guarantee results. Every trade carries risk. Position sizing rules exist precisely because losses are a normal part of any disciplined trading process.
The Friday Flash applies the CLEAR Framework to one real stock every Friday night. Free. No credit card. See exactly how each pillar is evaluated before you decide anything.
Subscribe Free See the Full Selection ProcessImportant Disclaimer
The content on this page is provided for educational and informational purposes only. The CLEAR Framework is a proprietary editorial methodology used to structure stock analysis for publication in The Friday Report and The Friday Flash. It is not investment advice, financial advice, or a recommendation to buy or sell any security.
The criteria, thresholds, and scoring descriptions on this page reflect the editorial standards of ProfitByFriday.com. They are not affiliated with, derived from, or endorsed by any third-party rating agency, financial institution, or individual analyst. All investing and trading involves risk. The value of investments can fall as well as rise. Past performance is not indicative of future results.
You should conduct your own research and seek independent financial advice before making any investment decision. ProfitByFriday.com is an independent, subscriber-funded publication. It does not accept advertising, affiliate payments, or compensation from any company whose securities may be discussed.