# Why Some Trends are More Powerful Than Others

Canonical: https://stocksurgedaily.com/why-some-trends-are-more-powerful-than-others/

There are plenty of old adages on Wall Street…

“Buy low & sell high.”

“It’s a market of stocks, not a stock market.”

“Sell in May, and go away.”

Some hold true, and some don’t.

One that really holds true for me is, “[**The trend is your friend**](https://stocksurgedaily.com/finding-the-right-price-to-buy-a-rising-stock/).”

But some trends are more powerful than others…

And that’s what I want to talk to you about today.

For example, have you ever heard of a “Power Trend”?

[**Coined by** **_Investor’s Business Daily_**](https://stocksurgedaily.com/why-big-bases-lead-to-big-breakouts/), a Power Trend occurs when a stock is showing tremendous strength.

These stocks can make big, fast moves and deliver mouth-watering gains.

Of course, these are exactly the type of stocks we like here at **_Stock Surge Daily_**_._ 

## **How to Spot a Power Trend**

Like most stock screens, a stock must meet several criteria to be considered a Power Trend stock.

**Rule #1: The stock's low must be greater than the** [**21-day moving average**](https://stocksurgedaily.com/why-you-need-to-watch-the-200-day-moving-average/) **(MA) for the past 10 sessions.**

In other words, we want to see the stock holding above its 21-day MA for 10 straight days.

The entire day's trading range should be above the 21-day MA line.

If it touches that line, it does not meet rule #1.

**Rule #2: The 21-day MA must be greater than the 50-day MA for the past five sessions.**

[**This one is pretty simple**](https://stocksurgedaily.com/the-one-simple-rule-to-remember-before-you-chase-a-rising-stock/). The 21-day line should be above the 50-day line for at least five straight days.

**Rule #3: The 50-day MA slope must be positive.**

Again, this rule is not overly complicated.

Just look at the stock’s 50-day MA, and make sure it is sloping up, not down.

Once these conditions are met, you have a confirmed Power Trend that could lead to huge gains.

## **A Powerful Example**

Here’s an example of a stock I put on the Feb. 28 **_Stock Surge Daily_** Watchlist.

![](https://lh3.googleusercontent.com/APGZzu8OxW6jG-dtPqFwdotPMo6LxzJProzx-0ufotBnviYyj3iI45lmVk7AVVtEqXh15OmEBSCuuDPphPLpl_59X_5J56kBmJGyB6FmvO8QPzPuPTAHwGufUTSC7Qart3MwTEvl)

**_Daily Chart of The Andersons Inc. -- Source: TC2000_**

As you can see, [**it continues to surge higher**](https://stocksurgedaily.com/how-to-trade-a-double-breakout-in-a-pre-earnings-stock/) and has now formed a Power Trend.

The 21-day MA (blue line) was holding above the 50-day MA (red line).

The stock held above the 21-day MA for 10 straight sessions.

And the 50-day moving average (red line) was sloping upward.

Therefore, the Power Trend was confirmed.

Preferably, you want to see this action take place [**while the general market is trending higher**](https://stocksurgedaily.com/how-to-scan-for-stage-2-stocks/).

That is where you are likely to see the biggest gains.

Of course, that’s not the case right now.

But as you can see, this structure can send stocks higher [**even under weak overall market conditions**](https://stocksurgedaily.com/how-to-survive-the-market-storm/).

Embrace the surge,

![](https://lh4.googleusercontent.com/L6ze6VXP-9E3d5SqKUQoG70uRLbG5THipFGJ4vVe5hBMu4qxkDWMIiT242nDG32RvvsSCWUyax81F0mre2cza12mL36FCbJhDv8cDL33Armtm9U18v-OaUPTGuzcaarEml_aGR5x)

Ross Givens

Editor, **_Stock Surge Daily_**