Find the Top 2.5% of the Strongest Stocks post this market fall.

Scanner and explainer video inside

"The secret to outperformance is Relative Strength" ~ Anonymous

Stock Selection.

When you pick a stock to compound your hard-earned capital, what are you looking for in that stock?

Out of nearly 2000+ stocks in NSE alone, how do you narrow down your list to about 10-20 handful of them as the chosen ones?

Especially after a swift correction like the one we just had?

In this article, I will tell you the only parameter you need, to find a strong stock in any market condition.

I will also explain the exact logic behind the scanners to find the strongest stock during this correction.

PS: Please watch the Video for an in-depth understanding of the criteria of relative strength

---

The secret sauce of a monster stock: Relative Strength

I don’t care if you are a day trader, a swing trader, or a positional trader.

I don’t care if you trade equities or pork bellies.

If you are a trader of any kind, you trade the relative strength.

Period.

How do you measure the relative strength of a stock?

You measure the performance during a fixed period and rank them. Simple.

Then pick the top 2.5% percent (or the top 1%, or 5%. You get the idea).

These are your strongest stocks.

Your future winners will most probably come from this list.

What timeframe do I personally use?

50 days sounds good for a swing-positional trader like me.

But how do you find the strongest stock during this market correction specifically?

---

Finding relative strength during this correction:

You first measure the period of the correction.

CNX500 started its descent from when and for how long?

12 daily bars.

It had a drawdown of -5.12% from the top.

Although the CNX500 started to fall from 4 March 2024, the real decline started on 19 February 2024 i.e. 23 daily bars. And had a drawdown of around 5.7%

So what would a strong stock look like during this period?

Any stock that has performed in the top 2.5% during the last 12 (or 23) daily candles and has not had a drawdown of more than 6% (you can relax this to 25% as strong stocks are also more volatile at times. Although, non-volatile stocks are preferred).

You can also add the criterion of “top 5% performer” during the last 50 days to make sure that the stocks were already the strongest even before the market fall.

---

Getting to the list:

1. Watch the YouTube video explaining the Homma High RS TTT scanner.

2. Link to the Scanner.

3. Tradingview list of High RS stocks in all timeframes (14. 24 and 50-day).

---

That's all for today.

Trading is damn hard. Losing money every day is not easy. Consistent profitability may seem like a far-fetched idea to you.

But it gets easy with practice, discipline, and experience.

It gets easier with an in-depth understanding of the basic principles of the stock market.

If you want to become consistently profitable in the shortest time possible,

Sakatas Homma can help you in 2 ways below:

1. Join the Sakatas Homma TA masterclass for beginners:

   A complete course containing 8 Hourly sessions. Once a year.

   To register for the next live masterclass, please fill out this form.

   Watch the 1st session of the Autumn 2023 masterclass.

   To access the full 8 sessions, contact us via WhatsApp @ 9481506784

2. Homma Private Access membership:

   HPA is a subscription-based educational service (on WhatsApp). Benefits include:

   1. Daily Market Breadth, Momentum, Sector Rotation, and Relative Strength Update.

   2. Access to all my scanners including the BBB (buy before breakouts) scanner.

   3. Access to my breadth-Momentum-Relative Strength & Sector Rotation dashboards.

   4. Access to my Trading view indicators: Homma Khela Hobe, Buy before Breakouts (BBB), Homma Endgame

   5. Access to live Telegram alerts to Homma Khela Hobe signal.

   6. HPA Weekly: Hourly weekend deep dives and Q&A.

   7. 1-year access to The Technical Take premium.

   8. Live updates on my portfolio and the trading setup rationale.

   9. Access to my high probability watchlist.

Yearly membership of 15000/- INR only.

UPI payment & WhatsApp @ 9481506784.

Yours

Sakatas “Relative Strength” Homma.

---

BBHV scanner:

Socials and Hommacommunity:

Whatsapp Channel:

Youtube Channel:

Academy:

Twitter:

Scanner and Dashboard below: