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Chapters 09 / 22

RS Crossing 80

RS Crossing 80 flags the moment a stock's relative strength rating jumps into the top tier of the market. It is a leadership event. A stock that has been merely strong steps up into decisively strong, and the scanner catches the exact day it crosses the line.

The RS Crossing 80 scanner showing fresh relative-strength leadership signals

What it is

You met the RS rating in the relative strength chapter. It is a score, roughly 1 to 99, that ranks a stock against the whole universe. A rating of 80 or more puts a stock in roughly the top 20% of the market by strength.

This scanner catches the crossing. Today the stock's RS rating is at or above 80. Yesterday it was below 80. It just crossed into the top tier.

The exact rule

A stock qualifies when:

  • Today's RS rating is at least 80.
  • Yesterday's RS rating was below 80.

That is the whole rule. It is a transition event, not a state. The stock has to cross the threshold today, not merely be above it. That is what makes the signal fresh.

Why the crossing matters

A stock stronger than 80% of the market is in the leadership zone. But the direction is what matters. A stock that crosses up into that zone is getting stronger. Its relative strength is improving sharply.

The crossing is worth attention for a specific reason: it often marks the moment a stock is about to lead. Institutions rotate into names that are outperforming, and the outperformance feeds on itself. When a stock crosses above 80, it is telling you the market is starting to back it decisively.

Reading it with the stage

RS Crossing 80 is most powerful when the strength has a structural reason behind it.

  • An RS crossing on a stock that is also moving into Stage 2 is a strong combination. The market is starting to back it and the trend is turning up.
  • An RS crossing on a stock still in Stage 4 is usually a sharp but fragile bounce. Confirmed leadership still needs the trend to turn.

Always read the crossing in context. A high RS rating on a declining chart is weaker evidence than a climbing RS rating on an improving chart.