Stocks that make new highs on increased volume tend to move higher. Outstanding stocks usually form a price consolidation pattern, and then go on to make their biggest gains when their price breaks above the pattern on unusually high volume. You can buy the best stocks out there, but if the general market is weak, most likely your stocks will be weak also. The market may react a little faster, but the effectiveness will not change because this is how the market works. Stocks go up with increased earnings.
Institutions buy the heck out of a stock that's doing well.
History will repeat itself over and over. Then we compare this number for a company to all other companies in our database, and rate the results on a scale from 1 to 99, with 99 being highest. The formula also takes into account the stability of earnings growth. You can look at the number as a percentile. We've built models of the stocks that were most successful since 1953, and big increases in earnings showed up as the most important factor.