Intermediate · 7 lessons · Free
Growth stocks and relative strength
The largest gains in a bull market tend to come from a small group of leaders: companies with fast-growing earnings and revenue, steady institutional buying, a strong industry and superior relative strength. This course explains how to recognize them, how to read the RS line and quarterly results, why the market's trend decides most of the outcome, where the buy points are, how to sell and size positions, and how to run the process every week. Each lesson maps to the screens and preset trading systems in Clear Tape.
Updated
Lessons
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Lesson 1
What makes a market leaderMarket leaders rise more than the market in advances and recover first after corrections. This lesson sets out the traits they tend to share, why each one matters, and how to turn them into a checklist you can apply before any buy decision.
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Lesson 2
Relative strength in practice: the RS line, RS new highs and ratingsRelative strength is the most direct evidence that a stock is leading. This lesson shows how to read the RS line, why an RS new high before the price matters, how a weighted RS rating ranks stocks, and how to combine both with the trend.
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Lesson 3
Reading earnings growth: acceleration, margins and the filingsLeaders are usually backed by fast and improving growth. This lesson shows how to read quarterly EPS and revenue, why acceleration and margins matter, how to check results in SEC filings, and how surprises, guidance and the market's reaction fit in.
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Lesson 4
The market and sector backdrop: when to buy growth stocks at allMost stocks, leaders included, follow the general market. This lesson shows how to read the market's trend, recognize heavy-volume selling and a confirmed new uptrend, use breadth and group rankings, and match your exposure to the market's state.
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Lesson 5
Buy points for leaders: bases, breakouts, volume pivots and earnings gapsA good stock bought at the wrong moment is a poor trade. This lesson shows what a sound base looks like and how to buy a breakout, an early volume pivot, an earnings gap or a first pullback, each with a defined stop and a clear sign of failure.
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Lesson 6
Selling rules and risk: cutting losses, taking profits and sizing positionsResults depend on selling as much as on buying. This lesson covers the loss limit and why it matters, how to size and concentrate positions, when to sell into strength, how to recognize a climax run, and how to trail a winner with the 50-day average.
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Lesson 7
A weekly leader routine: screen, watchlist, plan and reviewRules only help if they are applied every week. This lesson turns the course into a five-step routine, from the weekend market check to screening, written trade plans, execution and review, and maps each step to the Clear Tape tools that support it.
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