Relative Strength trading
Also known as Real Day Trading. Day and swing trades with the market. Liquid mid and large caps with options.
Hari and the Real Day Trading community teach traders to read the market first, then compare a stock with SPY. A stock holding up while SPY falls may be worth a closer look. They look for daily and intraday charts that agree, often in liquid mid and large caps with options.
How the setup works
The idea is simple. Big money moves the market, and a stock that refuses to follow SPY on a red day is telling you someone is buying it. When the market turns up, that stock often leads. The reverse is true for shorts: a stock that cannot rally while SPY rallies is a candidate to short when the market rolls over.
Relative strength alone is not enough. The daily chart should support the trade: a stock above its key moving averages, not stuck under resistance. Traders in this style usually stick to liquid names with tight spreads and weekly options, so they can get in and out cleanly. Many hold for minutes to hours; some carry the strongest names for days.
Scans to try
-
RS is on every grid.
RS 1H,RS 2HandRS 2W: strength vs SPY over the last hour, two hours and two weeks. Compare those readings before opening the chart. -
Ready-made lists:
Strongest,Rising Strength,Top Longs, and their mirrorsWeakestandFalling Strengthfor the short side. -
All Clearchecks the same condition on 15m, 1h, 4h and daily at once. The Green All Around starter does the same as a template. -
Call %/Put %flow columns plus a Has Weekly Options filter: keep any scan to names with a tradeable chain. - Market direction and sector strength stay on screen. You know what the tape is doing before you pick a name.
A ZenBot workflow
- Check market direction first. If SPY is weak, you are hunting names that hold up, not buying everything green.
- Open
StrongestorRising Strength. Sort byRS 1Hto see what is leading right now. - Confirm with
RS 2W: strength over two weeks means the move is not one candle. - Check the daily chart with
All Clearor the Fast Chart under the grid. - Add Has Weekly Options if you trade options, then turn on alerts for the scan so new names reach you.
What to watch for
Relative strength measured over a few minutes can flip fast. A stock can look strong because it has not reacted yet. Compare the hourly and two-hour readings before trusting one number, and remember the market still matters: most stocks fall on a hard down day, leaders included.