A systematic framework for identifying, entering, and managing
the market's strongest growth stocks
All four metrics must show ≥ 20% — each validates the others
Quarterly EPS vs prior year
Quarterly revenue vs prior year
Management efficiency
Pricing power, scalable ops
Why all 4 must align: Earnings without sales growth may be unsustainable. Sales without margins can't compound. ROE confirms capital efficiency. Together they form a bulletproof fundamental profile.
Relative Strength New High Before Price (RSNHBP) signal — stock's RS line making new highs before the price does
40–50% above 50-day average volume on breakout day. Proves institutional commitment.
Price must be above 50-DMA. Use 21 EMA as short-term gauge for trend health.
Cup-with-handle, flat base, double bottom, high-tight-flag. Proper constructive price action.
Up-day volume exceeds any down-day volume in prior 10 sessions — signals early institutional accumulation before the official breakout.
Creates a 2.3 : 1 reward-to-risk ratio
Even a 40% win rate produces positive expectancy
The stocks that lead each bull cycle — and how to identify them early
TMLs break out of bases and recover first from market corrections, often while the indices are still forming bottoms.
Base depth of 10–15% vs 25%+ for average stocks. Tight action shows strong institutional holding.
Volume dries up on pullbacks (no selling pressure) and surges on up-days (institutional accumulation).
Found in the top-performing industry groups. Strength clusters in leading sectors of each cycle.
Institutional Ownership — Must show increasing fund ownership quarter over quarter
Primary Setup · 7–65 Weeks
Secondary Entry Point
China's explosive internet growth. Baidu was the dominant search engine — the "Google of China" during the country's digital transformation.
Breakout from a proper base pattern on significantly above-average volume. Classic CAN SLIM buy signal.
Held through multiple 50-DMA tests. Built cushion on the initial move and used pullbacks to 50-DMA as confirmation of continued institutional support.
Sold on climactic action — exhaustion gap, massive volume, widest daily range. Classic offensive sell signal.
Streaming paradigm shift
Netflix represented a fundamental disruption of content distribution. The shift from DVD-by-mail to streaming was the "N" in CAN SLIM — a new product that changed an entire industry.
Broadband revolution infrastructure
Infrastructure play powering the broadband buildout. Essential chip supplier during a massive connectivity expansion cycle.
Recent Result (2024)
+65% in 30 days during the AI bull market
Roppel's guiding principles for consistent trading performance
Educational Reference — Not Investment Advice
Sources: The Roppel Report · FinNotes · GrowthStockMentor