CSRTP^TM Framework

Catalyst → Sector → Stocks on Radar → Technical Confirmation → Plan

In the CSRTP^TM Framework, sector selection begins with the Sector stage. StocksNStats focuses on identifying sectors that show a combination of market strength, trend alignment, and participation.

Sectors are shortlisted by reviewing:

• Catalysts: Relevant corporate, policy, government, or industry developments that may influence the sector.
• Trend: Whether the sector index is showing a constructive weekly trend.
• Relative Strength: How the sector is performing relative to the broader market.
• Market Breadth: The proportion of stocks within the sector showing positive price action.

1. Trend:

The sector index is examined across multiple weekly trend measures to determine whether the sector shows a bullish, bearish, or mixed/in-range structure.

For example, a sector index may be above some important trend measures while remaining below another. In that case, StocksNStats may classify the sector as Mixed / In Range rather than strongly bullish.

2. Relative Strength: 

The sector’s performance is compared with the broader market using a relative-strength analysis.

This measures how the sector is behaving relative to the market, rather than using RSI.

• RS line rising: Sector is outperforming the broader market.
• RS line falling: Sector is underperforming.
• RS line relatively flat: Sector is performing broadly in line with the market.

3. Sector Breadth:

StocksNStats also considers market breadth to understand how widely the sector’s price movement is being supported by its constituent stocks.

A sector with broad participation may provide a stronger basis for further research than one where only a small number of constituents are contributing to the sector’s movement.

The shortlisted sectors form the Sector Watchlist.

Stocks within these sectors are then examined during the Radar stage, where individual companies are researched using factors such as trend, relative strength, volume, and other technical considerations before moving toward technical confirmation and trade planning.

The CSRTP principle

Catalyst → Sector → Radar → Technical Confirmation → Plan

A government, corporate, or industry development provides a reason to investigate a sector. Market behaviour then helps determine whether that sector deserves further research.

In simple terms:

Catalyst identifies where to look.
Sector analysis narrows the field.
Radar identifies companies for further research.
Technical confirmation examines the setup.
Plan defines the conditions for action.

Proprietary methodology notice

Note: StocksNStats publicly describes the principles of the CSRTP framework for educational purposes. Certain detailed screening rules, calculations, thresholds, scoring methodologies, and internal research processes are proprietary and are not disclosed publicly.