1. Defining the Core Metric: Relative Strength (RS) Ranking

Relative Strength (RS) is not the same as RSI. It measures a stock’s price performance against a broad index (e.g., S&P 500) over a trailing 12-month period. The top 20% of stocks by RS form the highest quintile. Key tools for this ranking include:

• MarketSmith (Investor’s Business Daily): Provides the proprietary RS Rating on a 1–99 scale. Only stocks with an RS Rating above 80 qualify for momentum screening.
• Finviz Elite: The Performance (Quarter) and Performance (Half Year) filters allow you to rank stocks by trailing return, then sort by volume and volatility.
• Thinkorswim (TD Ameritrade): Use priceRelativeSpy as a custom study; scan for stocks where the 12-month RS line is hitting a new 12-month high.

Expert Tip: Combine RS ranking with EPS (earnings per share) acceleration. If RS is strong but earnings are declining, the momentum is speculative, not sustainable.

2. Intraday Scalping: The 52-Week High Breakout Scanner

A stock that breaks out to a 52-week high on heavy volume signals institutional accumulation. Essential tools for real-time scanning:

• TradingView Premium: Use the 52 Week High Breakout screener set to Volume > 1.5x Average and RSI > 65. Filter by sector to catch sector rotation.
• Barchart Premier: The New Highs screener lets you overlay Up/Down Volume Ratio > 1.5 to confirm breadth.
• TC2000: Use the Pseudo-Tick scan: Close = 52-Week High AND Volume > 2x 10-Day Avg AND Price > 10 & 20 SMA.

Data Table:

Tool	Key Filter	Timeframe
TradingView	52-Week High + Volume Spike	5-min / 1-day
TC2000	Pseudo-Tick + SMA confluence	Intraday
Barchart	Up/Down Volume Ratio	Daily

3. The MACD Histogram Divergence Scanner

MACD momentum shifts before price. A divergence—where price makes a lower low but MACD makes a higher low—signals a potential trend reversal. Screening tools:

• MetaStock: Use the MACD Divergence Explorer to scan >10,000 stocks in seconds. Set parameters: MACD Line (12,26,9) and Signal Line.
• AmiBroker: Write a custom MACDdivergence formula:

  Buy = Low  Ref(MACD(),-5);

  Then backfill with Optimize for best period.

• TradeStation EasyLanguage: Use the MACD Histogram Scan that triggers when histogram crosses above zero after being negative for 5+ bars.

4. The Volume Weighted Average Price (VWAP) Momentum Screener

VWAP tracks the average price weighted by volume. Stocks trading above VWAP on increasing volume have bullish momentum. Critical tools:

• Thinkorswim Scan: Use the VWAP_Breakout study with condition Close > VWAP AND VWAP Slope > 1%.
• TradingView Pine Script: Create a custom screener:

  study("VWAP_Momentum", shorttitle="VWAPM")
  v = volume
  cumV = cum(v)
  cumVP = cum(v*hlc3)
  vwap = cumVP / cumV
  plot(vwap, color=color.blue)

• QuantConnect: Use the Coarse Universe Selection to filter for stocks with VWAP > Price and Volume > 50th Percentile.

5. The Rate of Change (ROC) Cross-Sectional Ranker

ROC measures price change over a fixed period (e.g., 20 days). Cross-sectional ranking (comparing all stocks simultaneously) identifies the strongest movers. Tools for this:

• Python (Pandas/NumPy): Use libraries to pull data (via yfinance), compute daily ROC, then rank by percentile. Example snippet:

  df['ROC'] = df['Close'].pct_change(periods=20) * 100
  df['Rank'] = df['ROC'].rank(pct=True)

• Barchart Technical Ranks: Their pre-built Momentum Score aggregates 3-month, 6-month, and 12-month ROC into a single metric. Filter for scores above 80.
• MarketSmith: Use the EPS + RS + ROC combo scan. RS > 80, EPS growth > 25%, and 3-month ROC > 30%.

6. The RSI (Relative Strength Index) Extreme Screener

RSI values above 70 (overbought) or below 30 (oversold) can indicate extreme momentum. However, momentum traders often buy RSI > 70 after a pullback to 50. Key tools:

• Finviz Elite: Set RSI(14) > 70 combined with RSI(14) > RSI(14) 1 Day Ago. Then add Price > SMA(20).
• TradingView Pine: Use rsi > 70 and crossover(rsi, 70) to catch breakouts, not just high readings.
• StockCharts.com: Use the Scan Engine with condition RSI(14) RSI(14) 1 Day Ago for mean reversion momentum.

7. The Aroon Indicator for Trend Strength

Aroon measures how long since a stock hit a recent high or low. Aroon Up > 70 with Aroon Down < 30 signals strong uptrend momentum. Tools:

• TC2000: Custom scan: Aroon(14) Up > 70 AND Aroon(14) Down 20 EMA.
• MetaStock: Use The Aroon Explorer to find stocks where Aroon Up is above 80 and rising for 3 consecutive days.
• TradeStation: EasyLanguage scan:

  Value1 = AroonUp(14);
  Value2 = AroonDown(14);
  Condition1 = Value1 > 70 AND Value2 < 30;
  If Condition1 Then Buy;

8. The Chaikin Money Flow (CMF) and Accumulation/Distribution Line

Volume-weighted momentum. CMF above +0.2 on a 21-day period indicates heavy buying pressure. Key tools:

• Thinkorswim: Scan for CMF(21) > 0.25 AND Price > VWAP. Set volume filter: Volume > 1.5x 50-day average.
• TradingView: Use cmf(20) > 0.2 combined with ad(20) rising. This filters out stocks with price momentum but no volume conviction.
• QuantConnect Lean: Write a custom indicator: CMF = Sum(Volume * (Close - High - Low) / (High - Low)) / Sum(Volume). Only include stocks where CMF > 0.2 and increasing.

9. The Average Directional Index (ADX) + DI Cross Screener

ADX above 25 confirms strong trend, regardless of direction. Combine with +DI crossing above -DI for a pure momentum entry. Tools:

• Finviz Elite: ADX(14) > 30 AND ADX(14) > ADX(14) 1 Day Ago AND +DI(14) > -DI(14). Add Volume > 1.5x.
• Barchart: Use ADX Crossover screener: +DI(14) crosses above -DI(14) AND ADX(14) > 20. Exclude stocks with ADX above 50 (too extended).
• AmiBroker: AFL code:

  Buy = ADX(14) > 25 AND Cross(PDI(14), MDI(14));
  Sell = Cross(MDI(14), PDI(14));

10. The Growth-At-a-Reasonable-Price (GARP) Momentum Blend

Pure price momentum often fades. A GARP screen adds earnings quality. Use these tools to filter high-momentum stocks with strong fundamentals:

• Zacks Premium: Use the Zacks Rank #1 (Strong Buy) combined with Momentum Score A. This captures forward EPS revisions and price momentum.
• Morningstar Investor: Screen for Momentum Score > 80 AND PEG Ratio < 1.5 AND Revenue Growth > 20%.
• YCharts: Create a custom scan: Price Return 1 Month > 10%, Price Return 3 Months > 30%, EPS Growth Next Year > 15%, Debt/Equity < 0.5.

11. Automated Backtesting Engines for Momentum Screens

Testing a screening strategy is as important as the screen itself. These tools allow you to backtest momentum criteria on historical data:

• Portfolio123: Build a ranking system using factors like Relative Strength 1 Year (60%), EPS Surprise (20%), and Price/Volume Trend (20%). Backtest over 10+ years.
• QuantConnect: Use Machine Learning to optimize momentum screen parameters. Example: train a model to predict next-week return based on ROC, RS, and VWAP deviation.
• TradeStation RadarScreen: Run live momentum scans and record performance history. Export to Excel for Sharpe ratio analysis.

12. Integration Checklist: Combining Screens for High-Conviction Trades

No single tool is sufficient. Use this layered approach with the mentioned tools:

1. Primary Screen (RS + ADX): Use MarketSmith (RS > 80) and ADX > 25 from Finviz.
2. Secondary Screen (Volume + VWAP): Confirm with TC2000 (VWAP break + volume spike).
3. Tertiary Screen (Fundamental GARP): Check Zacks Rank #1 and PEG < 1.5.
4. Execution Screen (Intraday): Use Thinkorswim with VWAP and MACD divergence for entry timing.

Always set a maximum number of stocks in your screening queue (e.g., top 20 by RS) to avoid information overload.