METHODOLOGY

Methodology

Exactly what data, formulas, and criteria Trend Screener uses to select stocks — the full process, in the open.

In one sentence: after each trading day's close, Trend Screener recomputes the 8 trend conditions and the weighted Relative Strength (RS) for every U.S. and Korean stock using only confirmed daily bars, and shows the strong-trend leaders together with their rank.

1. Data Sources and Update Cadence

Every figure is based on confirmed daily bars (OHLCV) collected from external market-data providers after the close. Intraday quotes and minute bars are not used. Once the U.S. close (16:00 ET) and the Korean close (15:30 KST) are final, the day's bars are fetched and every stock is recomputed.

2. Stock Universe and Exclusion Criteria

For the metrics to be statistically meaningful, the population must be stable. Trend Screener limits the universe with the following criteria.

3. Computing the Weighted Relative Strength (RS)

Relative Strength (RS) is a momentum measure that converts how strongly a stock moves within the whole market into a percentile rank. Instead of a simple one-year return, it uses a weighted average that puts more weight on recent periods.

RS_raw = 0.40 × R(3M) + 0.20 × R(6M) + 0.20 × R(9M) + 0.20 × R(12M)
R(n) = return of the current close vs. the close n months ago
→ ranked into a percentile against all stocks → RS Rating 1 – 99

With 40% of the total weight on the most recent three months, the stocks that break out first as the market bottoms and rebounds earn high scores. Because RS is a relative rank rather than an absolute return, it can surface strong candidates that "fall less" even in a down market. An RS of 99 means the top 1% by momentum.

4. Trend Template — the 8 Trend Conditions

An 8/8 in the table means a stock passed all 8 conditions of Mark Minervini's Stage 2 uptrend, applied identically to U.S. and Korean stocks.

  1. Price > 150-day & 200-day MAPrice is above the mid- and long-term moving averages.
  2. 150-day > 200-day MAThe mid-term average is above the long-term one (proper alignment).
  3. 200-day MA risingThe long-term trend line has been rising for at least a month.
  4. 50-day > 150-day & 200-day MAThe short-term average is above the mid- and long-term ones.
  5. Price > 50-day MAPrice is above the short-term average.
  6. Price ≥ 52-week low × 1.30At least 30% above the floor.
  7. Price ≥ 52-week high × 0.75Within 25% of the new high.
  8. RS Rating ≥ 70Relatively strong versus the market.

Taken together, the eight conditions quantify a single state: the short-, mid-, and long-term moving averages are aligned and rising, price sits near a new high, and the stock is strong relative to the market.

5. Liquidity Filter (Optional)

Liquidity is an optional filter separate from the 8 conditions. Turn it on when you want to see only stocks whose average volume over the last 50 trading days is at least 500,000 shares. It does not affect the pass (8/8) determination itself, so thinly traded but strong-trending names still appear on the default screen.

6. Industry Classification and Industry RS

The Industry Analysis page groups stocks into a two-level classification (sector · industry) and, for each group, combines the market-cap-weighted trend strength of its members with breadth (the share of strong names) into a 1–99 industry RS, then ranks from strongest to weakest — because a trend is most reliable when a strong stock sits inside a strong industry.

7. Defining a Leader

The screener's "Leaders" filter quantifies William O'Neil's "Leader or Laggard" principle, keeping only stocks that meet both of the following at once.

8. Limitations and Cautions

Trend Screener is a quantitative reference from a trend-following perspective; it is not real-time data and does not recommend buying or selling any specific stock. Data may be delayed or contain errors, and past trend strength does not guarantee future returns. See the Disclaimer for details.
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