Raj - Mark Minervini Stage 2 with RS

How it works

The Mark Minervini Stage 2 Screener analyzes stocks by tracking multiple moving averages, including 50-day, 150-day, and 200-day SMAs to assess trend alignment. It evaluates price positioning relative to these moving averages and checks if the stock price is within 25% of its 52-week high and at least 25% above its 52-week low.

The screening process incorporates a custom relative strength (RS) calculation that compares the stock's performance against a benchmark like the S&P 500. By normalizing the RS on a 0-100 scale and requiring a score above 70, the screener identifies stocks demonstrating superior market performance and strong upward momentum.

Why it may be useful

The Stage 2 Screener provides traders with a systematic approach to identifying high-potential stocks in strong uptrends, reducing emotional decision-making and offering a structured method for stock selection. By focusing on stocks with consistent price performance and relative strength, traders can target investments more likely to generate significant returns.

This method helps investors filter out weaker stocks and concentrate on those exhibiting robust technical characteristics. The comprehensive screening process combines multiple indicators to create a more holistic view of a stock's potential, allowing traders to make more informed and disciplined investment decisions.

When to explore it

The Mark Minervini Stage 2 Screener is most effective during bullish market conditions when stocks are experiencing sustained upward trends. It works best in markets with clear directional movement, where stocks are demonstrating consistent positive momentum and breaking through key technical levels.

Traders should apply this screening method when seeking long-term swing trading opportunities and looking to build a portfolio of stocks with strong fundamental and technical characteristics. It is particularly useful for investors seeking systematic methods to identify stocks with potential for continued price appreciation and market outperformance.

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