When I’m scanning for trades, I’m not looking for magic or hope. I’m looking for real strength — stocks that are trending cleanly and setting up the right way.
A lot of people get too cute with their scans. They look for tiny breakouts, fancy patterns or low-probability setups.
That’s not my game. I want stocks that are already proving themselves — names that are above their moving averages, showing relative strength to the broader market, and preferably building momentum.
It All Starts With the Trend
When I pull up a chart, the first thing I ask is simple: Is this trending?
If it’s just chopping sideways, I’m out. I want a clear slope — moving averages like the 8-, 15- and 50-day stacked up nicely and pointing in the same direction.
When I looked through my list of candidates recently, Abbott Laboratories (ABT) came up, but it wasn’t strong enough. It spent too much time stuck under the 50-day moving average before finally breaking through.
That sideways action is a red flag for me. I want to see a strong, clean push — not a grind.
Relative Strength Is Non-Negotiable
The next filter is simple: I want stocks that are outperforming. If the S&P 500 (SPY) is barely moving but a stock is breaking out, that’s the kind of relative strength I’m after.
Even if I like a stock long term, I’d rather go with a name that’s flashing real strength now. It’s about stacking odds — and strong stocks in strong markets tend to stay strong.
If the stock isn’t trending cleanly, sitting above its key moving averages, and showing strength against the broader market, it’s not a buy for me. Simple as that.
Stick with the strongest charts and your trades will thank you.
Kane Shieh
Kane Shieh Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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