Implement Stage 2 Uptrend Detection

[rocketpoweryul]

• Determine transition criteria for Stage 1 to Stage 2 of primary trend in a security.
• Identify stock is squarely in stage 2

Use case is to filter out the stock market to an actionable universe of stocks. We don't care about stocks in any other stage, therefore:

• Stocks that meet either criteria are added to the universe
• perhaps a review of stock meeting transition criteria as they can be fresh product for study

[rocketpoweryul]

Transition criteria:

1. Close is above 150 day SMA
2. Close is above 200 day SMA
3. 200-day SMA has started to increase in price (slope is positive)
4. Stock is making higher highs and higher lows (at least twice, looking at peaks)
5. Volume correlates to price
6. More up weeks than down weeks with large volume
7. Pullbacks get support

Stage 2 Definition:

1. Close is above 150
2. Close is above 200
3. 150 above 200
4. 50 day SMA above 150 and 200
5. Close is above 1.25*52wk low
6. Close is above 0.75*52wk high
7. RS > 70, usually > 90
8. Close is above 50 except for low cheats
9. RSL is in an uptrend for more than 6 weeks

[rocketpoweryul]

Based on the above, it seems easier and more practical just to implement the definition and not the transition criteria.

A confirmation time (1 month) can be added to the criteria.

[rocketpoweryul]

We do need to calculate RS to accomplish the above.