Strength Trading

[Global]

The chart below shows the strongest stocks of S&P 500

This chart shows the long- and the short-term strength of the S&P500 stocks with the strongest momentum.

I use this chart to choose some stocks that show strength.

I then use simple technical analysis - moving averages, candlesticks, Bollinger Bands, support & resistance - to narrow down the possible tradable stocks.

The other thing I'm looking for is the stocks' Relative Strength.

It must be going up and above its 20-day moving average.

The chart of GPS, for example, is:

1. Price moves above its rising 20-day moving average - the green box.

2. Price broke above a resistance line - the blue line.

3. Price reached the upper Bollinger Band with a huge bullish candlestick, a sign of a strong uptrend

4. The stock's Relative Strength is going up and mostly above its 20-day moving average - the yellow box.

 

[Dazz]

Nice logic, so when you turn it on and trade for 6 months or so, what happened?

 

[smallfil]

The chart below shows the strongest stocks of S&P 500

View attachment 242326

This chart shows the long- and the short-term strength of the S&P500 stocks with the strongest momentum.

I use this chart to choose some stocks that show strength.

I then use simple technical analysis - moving averages, candlesticks, Bollinger Bands, support & resistance - to narrow down the possible tradable stocks.

The other thing I'm looking for is the stocks' Relative Strength.

It must be going up and above its 20-day moving average.

The chart of GPS, for example, is:
View attachment 242328

1. Price moves above its rising 20-day moving average - the green box.

2. Price broke above a resistance line - the blue line.

3. Price reached the upper Bollinger Band with a huge bullish candlestick, a sign of a strong uptrend

4. The stock's Relative Strength is going up and mostly above its 20-day moving average - the yellow box.

Where did you get the bar chart for the long term and short term strength of the S & P stocks? That looks like an awesome tool.

 

[MarkBrown]

 

[Dazz]

wonderful, so when you trade it, what was your track record? How many trades taken? Stops & tgts?

 

[taowave]

Canslim without Fundamentals??

 

[Dazz]

Canslim without Fundamentals??

good thinking - maybe - but: there is no rigorous academic research anywhere that proves any investing strategy works. Might as well as be scratch and sniff trading.

 

[taowave]

All the really good directional traders I know follow a similar approach..Canslim,Modified Canslim,Momentum....Some apply basic fundamental metrics,some don't....

If you look on AAII website or use Portfolio 123 to backtest you will see that there is merit to growth/momo style investing

good thinking - maybe - but: there is no rigorous academic research anywhere that proves any investing strategy works. Might as well as be scratch and sniff trading.

 

[Dazz]

thanks - but their portfolios are too complicated to link to Canslim and back testing but no real time trade stats joins 3000+ other programs other there. I want a live, real time, trading room or investor that uses it at point blank range. Besides, not sure all the floating pics above are as you suggest.

 

[taowave]

Those floating pics are not mine.
Check out Minervinis website..

He certainly appears to be the real deal.His students did pretty well in Zedahs trading comp..