June 1, 2021

Trending Stocks Checklist

Trending Stocks Checklist

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Trending stocks are ones that are moving strongly in one direction whether up or down. 

Here are trending stock checklists:

Stocks in an uptrend:

  1. Making higher highs and higher lows. 
  2. Price is above key moving averages. 
  3. The chart has moving average crossover signals. 
  4. Price is near all time highs. 
  5. Price is near 52-week highs. 
  6. Volume is increasing with price. 
  7. Technical indicators are bullish. 
  8. Technical indicators are showing momentum to the upside. 
  9. Sentiment is bullish for the chart. 
  10. A breakout of a trading range to the upside. 
  11. High percentage gain in price on the chart. 
  12. High revenue and sales are projected for the company. 

Stocks in a downtrend:

  1. Making lower highs and lower lows. 
  2. Price is below key moving averages. 
  3. The chart has moving average crossunder signals. 
  4. Price is near all time lows. 
  5. Price is near 52-week lows. 
  6. Volume is increasing as price goes lower. 
  7. Technical indicators are bearish. 
  8. Technical indicators are showing momentum to the downside. 
  9. Sentiment is bearish for the chart. 
  10. A breakout of a trading range to the downside. 
  11. High percentage loss in price on the chart. 
  12. Low revenue and sales are projected for the company.

These parameters are time frame dependent for the trader or investor. A buy and hold investor will quantify a downtrend differently than a day trader. The more that a chart meets the above metrics the greater the strength of a trend is likely to be. 

“The answer to the question, What’s the trend? is the question What’s your timeframe?” – Richard Weissman