Thread by @swing_ka_sultan

Guys, I had asked you a question about identification of Strength & Weakness in stock market. This exploration which I am using is giving me very encouraging results and with this approach I am able to identify stocks which are outperforming.. 1/n

https://twitter.com/swing_ka_sultan/status/1170958851081768960?s=19

95% of the market. Before sharing this exploration, I wanna make clear that I didn't created this afl, so credit is not mine.

Now, before anything this is the link of the explorer. This is "IBD Relative Strength" which is created by William O' Neil. 2/n
drive.google.com/file/d/1OVluOS…

This ranking system is very popular in US markets, and you'll find use of this RS in books of Mark Minervini as well. This system basically majors a stock's price performance against all other stocks listed in an exchange. Then if ranks stocks on this basis, suggesting 3/n

how it is doing against all other stocks listed. Like if stock is given a ranking of 98, it means it had outperformed 98% of stocks listed in that exchange. Here is an screenshot of results as of today.

Coming on the formula of the calculation, it gives equal weightage 4/n

to a stock's annual returns, 9 month return and 6 month return, & double weightage to last 3 month return. Hence any stock which picked up recently also got captured in this explorer.

How I use it, firstly this is an initial scanner to find out stocks which're outperformers 5/n

Before applying this exploration, I always refine my primary watchlist by removing all stocks trading below ₹50 & having less avg volume than 10k daily. This removes upto 800-900 stocks from 1600 listed stocks on NSE. After this when I apply this explorer, I get 30 to 50.. 6/n

stocks in current environment. This might increase when overall environment will turn bullish.

In current environment it captures two types of stocks- firstly those which are in settled uptrend and outperforming all market. Secondly those stocks which are consolidating 7/n

in last 3 month, & recently picked up sharply in last few days or weeks because overall environment is mostly bearish so overall market has been bearish. What I do is I manually shortlist the watchlist between stocks in settled uptrend, and those which are in pre mature trend 8/n

but it might be the start of a fresh trend. Anyone who uses trend following indicators like Moving Avg, or Ichimoku etc can use their entry exit strategy to trade these stocks.

Lastly I want to tell you that this is a very powerful explorer for trend following which 9/n

ensures that you'll remain invested in best performers. But at the same time it is necessary that you follow basic price action & trend following principals. You need not to shortlist stocks everyday, instead doing it on weekly basis works best. 10/n

Kindly help spreading the word-
@PAVLeader @sanstocktrader @Stocksfanatic @Stockengg @Pathik_Trader @BissaGauravB @CAtLarge @bluechips4u @iManasArora @iArpanK @Zafargs79 @prodigal_trader

#from_swing_ka_sultan