When you think about it, just about every investor is following a trend in one way or another. Whether they make money doing it, of course, is another question altogether.
Regardless of your time horizon — minutes or months — a financial instrument must move in your favor to be profitable. It is that simple. So finding a reliable indicator to measure trend could be critical to your success.
As it turns out, there is a simple, quantitative indicator we can use to find stocks with the propensity for a big move…
It’s called relative strength (RS).