The DIY Approach to Scanning for Leadership

Louis Sykes
January 27, 2022

Editor's Note: Before we dive into the substance of today's note, I want to be sure you're all aware that our Crypto Friday Live Strategy Session will get started tomorrow, January 28, at 3:00 p.m. ET.

See you tomorrow at 3:00 p.m. ET.

Relative strength.

We talk about it all the time -- and for good reason. If these last few years have reinforced anything, it's the power and efficacy of incorporating relative strength into our approach.

You can never outperform if you don't hold assets that are doing exactly that, outperforming.

Given that trends are more likely to continue than reverse, if a group of assets have outperformed their alternatives, it's more likely than not they'll continue to do so.

One of the primary components of our work as technical analysts here at All Star Charts is finding favorable opportunities through relative strength: stocks, commodities, sectors, and, more recently, in cryptocurrencies.

As technicians, we have a ton of resources and data at our disposal. Every day, we're running our own internal scans through a variety of proprietary data feeds and platforms.

We like to really get our hands dirty in this analysis. For those wanting a simple workaround, here's a little life hack.

Watchlists are elementary building blocks for traders. In crypto, different coins trade on different exchanges, and organizing watchlists across all these assets can be a slight annoyance without the right tools.

Instead of manually inputting tickers into a TradingView watch list, you can go to the site Sandwich Finance, where you can download all listed pairs among all centralized exchanges.

It looks like this:

For instance, if you trade perpetual futures on FTX, click on the perpetual futures icon under FTX. This will download a text file, which you import as a watchlist on TradingView.

Having these detailed watchlists is a necessity.

You can seamlessly see which coins are leading on the day and which coins are lagging. Particularly on highly volatile days, we like to see which coins are green while everything else is red.

Having these watchlists makes that much easier.

Here's an example of a watchlist we imported of all coins listed on FTX, sorted by the best performers on the day:

The TradingView screener is another easy way to filter by relative strength. This is found on the bottom left-hand side of the TradingView platform.

Using this, you can create customized scans of your own -- including but not limited to volume, market caps, new highs and new lows, momentum, and returns.

In the example below, we're scanning for FTX coins over $100M in market cap making new three-month highs.

Without access to sophisticated scanning capabilities offered in platforms like Optuma, this is an easy and simple but effective way to replicate similar results.

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Thanks for reading, and please let us know if you have any questions!

Allstarcharts Team

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