Sometimes the easiest way to find winning stocks is Relative Strength
One of the simplest things I do regularly is run a Relative Strength screener.
Not complicated.
Just looking for stocks that are outperforming the market across multiple timeframes.
When a stock shows up with RS near the top across the board, it’s usually telling you something important.
Institutions are accumulating it.
A recent example was FSLY.
After a big earnings gap on heavy volume, it immediately showed up on the RS screener and went on watch.
When you see a move like that, the playbook is pretty simple.
Wait for the stock to tighten up and look for a continuation move.
That’s exactly what happened.
The stock consolidated after the earnings gap and found support at the 10-day moving average, which is often where strong momentum names defend during powerful trends.
From the time it was mentioned in the subscriber chat back in February, the stock has continued to show strength and is now up more than 35%.
This type of move is very similar to what traders like Kristjan Kullamägi call an Episodic Pivot.
A major catalyst hits. The stock gaps up on huge volume. Then strong relative strength keeps it near highs.
Often the next opportunity comes when the stock tightens up and continues higher.
You don’t need complex indicators or screens.
Many times the big winners are simply the stocks already showing the most strength.
That’s exactly what Relative Strength helps you find.
