
April 27, 2024
What Makes Stocks Keep Going Higher?
Institutional accumulation is the driving force behind stocks that turn into big winners. Their massive buying power can push a stock higher over weeks or even months as they accumulate large positions over time.
But why do some stocks stall after a quick 15-20% gain, while others continue climbing, to then form new bases, and break out again?
David Ryan asked himself this very question when developing the Ants Indicator. He wanted to pinpoint the characteristics of stocks that attract strong institutional demand—the kind of demand that fuels long-term price appreciation.
Big money managers, such as mutual funds, hedge funds, and pension funds, don’t buy stocks the same way individual investors do. They manage billions of dollars, so they can’t simply buy their entire position in one day.
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Instead, institutions accumulate shares over time, creating consistent demand which pushes prices higher.
Who Is David Ryan?
David Ryan is a highly respected investor, trader, and market researcher best known for his work at William O’Neil & Company and Investor’s Business Daily (IBD). His deep understanding of stock market behavior and institutional accumulation helped him develop strategies that identify super-performance stocks—companies with the potential for massive gains.
Ryan gained widespread recognition by winning the U.S. Investing Championship three years in a row—in 1985, 1986, and 1987. Each year, he achieved triple-digit gains, and his total return over the three years was an astounding 1,379%.
While studying top-performing stocks, Ryan noticed that some stocks kept climbing even after appearing extended, while others stalled out. Through research, he found that stocks with strong institutional accumulation—where large funds consistently buy shares over time—were the ones that continued higher.
This led to the development of the Ants Indicator, which helps traders spot these high-potential stocks early.
The CANSLIM style of trading blends fundamentals in addition to technical analysis. Any stock traded with this methodology should have growing earnings and sales, in addition to supportive price action.
What is the Ants Indicator?
The Ants Indicator is a technical signal to identify stocks under strong institutional accumulation. It appears when a stock experiences a surge in both price and volume over a short period—signaling that big money investors, like mutual funds and hedge funds, are aggressively buying shares.
The Ants Indicator appears when a stock meets all three of the following conditions within the past 15 trading days:
- 20-25% increase in price
- 20-25% increase in volume
- 12 out of the past 15 days are up
Institutions can’t buy their full position in a stock in just one or two days. They manage billions of dollars, so if they were to buy too aggressively, they would push the stock price up too quickly and hurt their own cost basis. Instead, they scale into positions over days or even weeks.
This steady accumulation creates persistent buying pressure, which drives the stock higher while forming distinct price patterns.
Why is it called the Ants Indicator?
David Ryan originally marked each price bar that met the Ants criteria with a small dot at the top. As these dots began stacking up on the chart, they resembled a trail of ants marching along the price bars—hence the name Ants Indicator.
Why Stocks With Ants Signal Top Performers?
Stocks that trigger David Ryan’s Ants Indicator often go on to become top-performing stocks. When institutional buyers step in they scale into positions over weeks or months, creating strong and sustained demand.
When the Ants Indicator appears on a chart, it confirms three key factors that drive massive stock gains:
- Sustained strength – A stock that closes higher on 12 out of 15 days shows consistent demand.
- Explosive price action – A rapid 20-25% increase in price in a short period signals strong momentum.
- Institutional accumulation – A simultaneous surge in volume indicates that big funds are buying, which supports the price move.
As the company continues to post exceptional earnings and sales, institutions will continue accumulating shares. This steady accumulation creates persistent buying pressure, which drives the stock higher
Ants Indicator Case Studies
Example 1: UBER
UBER showed a huge price advance off its lows and broke out of a traditional base. When the Ants indicator appeared on the chart, it signaled that this stock was a potential super performer.
Following a consolidation in price, a new base evolved. Within the next two months, the price tightened and provided a tradable pivot.
Example 2: MSTR
After MSTR broke out of a traditional base, the Ants indicator appeared. Notice how it took a couple of weeks for the price to consolidate, tighten, and then provide another tradable range.
Remember the Ants indicator was created by David to spot potential super performance stocks that have the potential to double after Ants show on the charts.
More tradable areas developed over time as the stock saw tight price action. We see the Ants indicator appear after a move up and are waiting for an area to manage risk against.
Example 3: HOOD
Off the bottom near its all-time lows, the Ants Indicator signaled institutional accumulation in HOOD and then a tight base formed a new tradeable range. Again Ants signaled more accumulation as it broke out into new 52-week highs.
How to Find Stocks With the Ants Indicator in Deepvue
Deepvue offers multiple ways to find stocks that display the Ants criteria.
Adding the Ants Indicator to Stock Charts
You can add the Ants Indicator in Deepvue using the Technical Patterns tool.
Open the indicator settings – Search “DV” to see all Deepvue’s custom indicators and select “Technical Patterns.”

In the indicator settings, select Ants and uncheck all other unwanted indicators.

Customize how the indicator appears by adjusting the shape, color, and placement on the chart in the Style tab.

Screening for Stocks with Ants
Find stocks with the Ants criteria by adding it to any of your screens.

When editing your screener, you can simply type ants into the search bar. Navigate to the Technical Patterns and click “yes” once Ants is selected.
Combine the Ants Technical Pattern with your favorite fundamental or liquidity screens.
Key Takeaway
Large funds like mutual funds and hedge funds don’t buy stocks in one day – They accumulate shares over time, creating consistent demand that pushes prices higher. Stocks that attract strong institutional buying often form new bases and break out multiple times, leading to long-term price appreciation.
The Ants Indicator appears when a stock shows:
- 20-25% increase in price
- 20-25% increase in volume
- 12 out of the past 15 days closed higher
This combination signals big money is flowing in, increasing the likelihood of continued price gains.
The Ants Indicator is a powerful tool for spotting potential super-performing stocks. When it appears on a chart, it signals heavy institutional accumulation, increasing the chances of big future gains.