How to Find Super Trending Stocks

I use 5 moving averages to find a super trending stock.

In my world, there are 3 categories of moving averages:

- Long term

- Medium term

- Short term

I use 2 long term moving averages:

- 150 SMA

- 200 SMA

I use 1 medium term moving average:

- 50 SMA

I use 2 short term moving averages:

- 21 EMA

- 8 EMA

In my view, a super up-trending stock is a stock that meets the following criteria:

8 EMA > 21 EMA > 50 SMA > 150 SMA > 200 SMA

I give credit to Mark Minervini in helping me understand the importance of the medium and long term moving averages.

I give credit to Patrick Walker in helping me understand the importance of the short term moving averages.

I use these moving averages on the daily timeframe chart.

On the weekly timeframe, I use 3 moving averages:

- 10 SMA

- 30 SMA

- 40 SMA

I give credit to Stan Weinstein in helping me understand the importance of the 30 week SMA.

I give credit to William O' Neil in helping me understand the importance of the 10 week SMA.

Here are my rules:

For a super up-trending stock:

8 EMA > 21 EMA > 50 SMA > 150 SMA > 200 SMA

and

on the weekly chart:

10 SMA > 30 SMA > 40 SMA

Similarly, for a super down-trending stock:

8 EMA < 21 EMA < 50 SMA < 150 SMA < 200 SMA

and on the weekly chart

10 SMA < 30 SMA < 40 SMA

These screeners can easily be put on the Trading View Application.

There is no need for any special software for these simple criteria to find super trending stocks.

I never go short on a super up-trending stock.

I never go long on a super down-trending stock.

I "preferably" stay away from stocks that are neither in an uptrend nor in a downtrend.

Moving averages are lagging indicators.

However, moving averages are great filters.

Moving averages can also be used to manage trades.

Regards,

Rohit Musale, CFA

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