Learn the method

What is Relative Strength (RS)?

Relative strength measures how a stock's price has performed compared to the overall market and its sector peers, rather than looking at its price in isolation. A stock can be "up" in absolute terms and still be a laggard if the rest of the market moved further and faster.

On PranitIQ, every stock gets an RS Rating between 1 and 99. A rating of 90 means the stock has outperformed 90% of all other tracked stocks over the lookback period. The idea isn't new — it draws on decades of research showing that stocks already showing leadership tend to keep leading over intermediate time horizons, more often than laggards catch up.

What is Stage Analysis?

Every stock moves through recognizable phases as institutional money accumulates or distributes shares over time. We simplify this into four stages:

• Stage 1 — Basing: The stock trades sideways after a decline, as selling pressure dries up and accumulation quietly begins.
• Stage 2 — Advancing: The stock breaks out of its base on rising volume and begins a sustained uptrend. This is typically the stage with the best reward-to-risk profile.
• Stage 3 — Distributing: The uptrend loses momentum, price action becomes choppy, and early holders start taking profits.
• Stage 4 — Declining: The stock enters a sustained downtrend as distribution completes and selling dominates.

Combining a high RS Rating with a confirmed Stage 2 breakout is the core screen most users start with — it narrows thousands of stocks down to a handful worth a closer look.

How the score is built

Behind every RS Rating and stage classification sits a blend of price momentum across multiple timeframes, volume confirmation on up versus down days, and relative performance against both the broad market index and the stock's own sector. We also layer in a set of eleven fundamental checks — things like earnings growth trends and margin stability — to filter out momentum that isn't backed by business quality.

Frequently asked questions

Is this a stock tip service? No. PranitIQ is a research and screening tool. Nothing on this site is a recommendation to buy or sell any security — always do your own due diligence or consult a registered investment advisor.

How often is data updated? In a production version of this platform, rankings would refresh once per trading day after market close. This demo site uses static sample data for illustration only.

Do I need trading experience to use this? The screener is built to be usable by both new and experienced investors — the Learn section exists so the terminology never feels like a black box.