2024-04-05 by Lucas

Or between 10:25am(est) and 10:45am (est) I noticed while SPY declined, JKS climbed. At 10:55 as SPY began to reverse I went long JKS at 41.80 and sold it 20 minutes later for a $1 profit. JKS broke through the 50 SMA and had room before the 100 SMA on the daily, with Relative Strength and Relative Volume over 1.5.

This quote is from the community's 'TheRealDayTrading' eBook, in the section titled 'This is What a Majority of Day Traders Actually Do'.

The concept of relative strength suggests that if a stock moves in opposition to the general market trend (represented by the $SPY), then that stock demonstrates an advantage in terms of relative strength or relative weakness.

In general if SPY drops a lot, most stocks are also going to drop, and if SPY goes up, most stocks will go up as well. Think of SPY as the wind on the back of the stock pushing it higher, or conversely in the face of the stock making it difficult for it to move forward. However, stocks with RS/RW have their own strength, some with enough to overcome that wind or to use it in order to go even farther. In other words, if you removed the wind altogether, many stock would just be flat, but some will move under their own power. Those stocks have Relative Strength or Relative Weakness.

Scan Criteria for relative strength stocks: Identify stocks that exhibit an upward trend when the $SPY (representing the general market) is in decline.

How to scan stock that has relative strength?

Step 1:

• type SPY in the search bar and go to SPY page or using this link: https://www.wewave.app/app/symbol/SPY?timeInterval=1MIN
• Choose tab of “Cross Assets Match”

Step 2:

• choose short time frame like 1min, 5min for day trading. 15min, 1hour for swing trading.