How Oliver Kell Finds Market-Leading Stocks

Oliver Kell’s swing trading strategy is built around his Cycle of Price Action system, which focuses on institutional quality stocks with price and volume characteristics that identify price trends. He targets liquid, high-priced, and high-beta stocks that have the potential for big moves.

Focus on High Revenue and Earnings Growth

Following the lead of William O’Neil’s CANSLIM strategy, Oliver Kell trades only the best stocks – He only trades top-performing stocks with strong fundamentals that attract institutional investors.

Here’s what he looks for:

• Quarterly earnings and sales growth of at least 30%.
• Triple-digit growth when possible.
• Accelerating sales growth, as it signals increasing demand.

By focusing on companies with strong revenue and earnings trends, Oliver Kell increases the likelihood of trading stocks that can sustain powerful uptrends.

Look for Stocks with Strong Price and Volume Patterns

Oliver Kell prioritizes stocks with the right combination of price action and liquidity. Price action determines the trend, while volume confirms its strength.

His key criteria include:

• A series of higher highs and higher lows, signaling an uptrend.
• Increased volume on up days and decreased volume on down days, confirming buying interest.
• Rising prices with accumulation patterns, indicating strong demand and a potential entry point.

When a stock’s price rises alongside high volume, it signals strong interest from buyers, making it a good time to consider entering the trade.

Track Market Cycles and Relative Strength

Even the best stock won’t move higher if the overall market is in a downtrend. Oliver aligns his stock selection with the broader market cycle to increase his odds of success.

• Stocks perform best when the S&P 500, Nasdaq, and other indices are in uptrends.
• At market turning points, Oliver trades more aggressively and holds positions longer.
• Near the end of a rally, he reduces position sizing and holding times.

As part of his daily routine, Oliver Kell screens for stocks showing relative strength compared to major indices. He looks for stocks that are further along in their Cycle of Price Action, signaling potential outperformance.

Align Multiple Timeframes

The best market moves occur when the lower timeframe moves align with the higher timeframe trend. Olver uses daily and intraday charts to pinpoint low-risk entries while looking at monthly and weekly timeframes to understand the longer-term trends

• The higher timeframes (weekly & monthly) should be in uptrends.
• The lower timeframes should begin to see positive price action off the lows after a correction.
• The strongest moves over when all time frames are making higher highs and higher lows.

Ensure stocks are in confirmed uptrends by analyzing higher timeframes. Look for timeframes to align when you see positive price action on the lower timeframe reconfirming strength.

What Is the Cycle of Price Action?

Oliver Kell’s Cycle of Price Action strategy focuses on technical analysis to spot price trends using accumulation and distribution signals. This method works in both uptrends and downtrends, providing a clear roadmap for identifying low-risk entry points.

At its core, the cycle of price revolves around the 10 and 20-day exponential moving averages. Oliver looks for moments to get aggressive when the stock is supported above the rising moving averages and gets defensive when the price is resisted downward against the declining moving averages.

Reversal Extension:

A Reversal Extension marks the end of a downtrend when panic selling leads to capitulation and a potential trend reversal. Look for strong support levels at higher time frames to confirm a bottoming pattern.

• Occurs when fear-driven selling forces prices lower until buyers step in.
• Heavy volume signals a possible bottom as the price stretches below the moving averages.
• Lower time frames become oversold, then snap back up into moving averages.

Wedge Pop (The Money Pattern):

After a Reversal Extension, a Wedge Pop occurs when the stock rallies back through its moving averages. This phase is key for spotting relative strength and the next market-leading stock.

• After the stock rallies off the lows, it often moves sideways forming a consolidation area.
• A tight price range near short-term resistance creates a tradeable pivot point.
• A breakout above resistance and reclaiming the moving averages signals an early entry point.

EMA Crossback:

After a Wedge Pop, the stock tests its moving averages, forming an EMA Crossback. This entry opportunity is accompanied by confirmation of the new trend’s strength as the moving averages now support the price higher.

• Price consolidates into the moving averages, allowing traders to add to or start a new position.
• Supportive buying action signals strong demand, reinforcing the uptrend.
• Entering at this stage provides a low-risk position early in the cycle.

Base n’ Break:

The Base n’ Break pattern occurs when the stock moves sideways, letting moving averages catch up before continuing higher. This tight basing pattern is key for trend continuation and can align with a larger basing pattern or a shorter consolidation at new highs.

• A well-defined base forms within a few weeks, signaling a healthy trend.
• Price consolidates into moving averages before breaking higher, forming higher lows.
• Use this setup to add, trail stops, and manage risk efficiently.

Exhaustion Extension:

An Exhaustion Extension signals the end of an uptrend, where the price extends far above its moving averages before reversing lower. This euphoric blow-off phase sees a large increase in volume at the highs, followed by a close near the lows.

• A euphoric rally pushes the price well above its moving averages.
• Higher time frames confirm overextension, hinting at a trend reversal.
• When selling pressure increases, the price pulls back and forms a new base or tops out.

Wedge Drop:

A Wedge Drop happens after an Exhaustion Extension when the price fails to recover and breaks down below the moving averages. This confirms the beginning of a new downtrend.

• Buyer momentum weakens, and sellers push the stock below key moving averages.
• A break below support confirms the trend reversal, signaling further downside.
• The stock needs time to form a new base before another potential rally.

EMA Crossnback (Downside):

The EMA Crossback to the downside occurs when the price tries to rally into declining moving averages but faces strong resistance. Instead of bouncing. Resistance at the moving averages rejects the price lower and the stock continues its downtrend.

• Price briefly rises into moving averages but fails to gain momentum.
• Sellers step in at resistance, pushing the price back downward.
• This confirms the strength of the downtrend as sellers are still in control.

Base n’ Break (Downside):

A Base n’ Break to the downside mirrors its bullish counterpart but within a declining trend. The price moves sideways and then breaks lower as the moving averages continue to act as resistance.

• Small consolidations form before the price resumes its decline.
• Declining moving averages cap upside moves, reinforcing downward pressure.
• Eventually, a Reversal Extension occurs, restarting the Cycle of Price Action.

Why Oliver Kell Focuses on Leading Stocks

Oliver Kell focuses on leading stocks because they offer the highest probability of strong price movements. Leading stocks are the most liquid, high-beta names that attract institutional interest with good earnings and sales with the potential for strong trends.

Institutions accumulate these stocks over time, creating sustained price trends that traders can capitalize on. Leading stocks trade with high volume, making it easier to enter and exit positions quickly to help manage risk effectively.

Market leaders break out ahead of the indexes, signaling strength. When the market transitions from a correction to an uptrend, these stocks:

• Show higher relative strength compared to the index.
• Recover faster than the general market.
• Reach new highs sooner than other stocks.

Oliver Kell monitors leading stocks to identify market sentiment. If the leading stocks are breaking out and holding gains, it often suggests the market is in a healthy bullish phase.

Instead of wasting time on weak stocks, Oliver Kell focuses on a small handful of leaders, which account for the majority of his gains. Stocks making new highs tend to keep running, especially when backed by strong fundamentals and institutional buying.

Essential Criteria for Screening Stocks

To trade successfully, Oliver Kell uses a disciplined approach to stock selection. Instead of chasing random stocks, he screens for high-probability setups that align with his price cycle strategy.

To focus on only the best names Oliver first utilizes basic liquidity criteria.

• The price above $20 avoids low-priced, volatile stocks.
• The average daily volume of over 500,000 ensures liquidity for smooth trades.
• Market cap between $2 billion and $25 billion targets mid-cap stocks with strong growth potential.

Oliver then makes sure the stock is in an uptrend by looking at technical price trends.

• Trading above the 10- and 20-day moving averages.
• Tight price action indicates controlled and steady buying.
• Accumulation volume signals institutional interest.
• High relative strength shows the stock is outperforming the market.

Above all else, leading stocks have exceptional earnings and sales growth.

• Earnings and sales growth in recent quarters over 30%.
• Ideally sees triple-digit earnings growth.
• Accelerating earnings and sales indicates increasing demand.

Oliver Kell Screens

Oliver emphasizes the importance of screening for high-growth, liquid stocks that show strong price action. His process involves screening for stocks with the strongest technical and fundamental characteristics, ensuring they have the potential for big, sustained moves.

Why Finding Stocks at 52-Week Highs Uncovers Leaders

Stocks at 52-week highs often signal momentum as the price is approaching levels with no overhead supply. After a downtrend when the stock begins to rise, buyers from higher levels will sell their shares, after seeing a loss, once the price comes back to their entry.

When a stock reaches new highs there is no one left to sell. Stocks that are trading at their 52-week highs will continue higher with no selling pressure to endure.

How Bull Snorts Show Power

The Bull Snort screen identifies stocks exhibiting a huge volume surge compared to their usual trading activity, typically signaling strong buying momentum. Volume acts as the trigger, with price movement serving as the resulting outcome to monitor.

A dramatic spike in volume, often multiple times the daily average, frequently points to a significant market event or catalyst, such as earnings reports, product unveilings, or acquisition speculation. This surge reflects intensified attention from institutional players or the wider market, hinting at an impending breakout or emerging trend.

Why Stocks that Double Continue Their Strong Moves

A “doubler” is a stock that has surged 100% or more within a specific timeframe, showcasing undeniable upward momentum. These stocks often continue climbing due to sustained buying pressure from institutions, positive market sentiment, and strong fundamentals.

Once a stock gains attention for doubling, it often attracts more buyers, including retail traders and momentum investors. Stocks that double often have the potential to double again if the momentum and institutional interest remain strong.

Why Relative Strength Matters

Relative strength measures a stock’s capacity to outperform the broader market, especially during a downturn. When the majority of stocks are declining, those that hold steady or rise reveal potential institutional investor interest.

Screening on down days isolates stocks with genuine resilience, often fueled by institutional accumulation. Spotting stocks with relative strength on broad market weak days will pinpoint stocks poised to shine when the market rebounds.

How Gaps Show Strength

A gap occurs when a stock’s price opens significantly higher or lower than its previous closing price, creating a visible price gap on the chart. These abrupt, unfilled price movements often indicate strong demand, high-impact news, or institutional activity.

Gaps are a powerful sign of strength that can help traders identify high-momentum stocks before they make their next big move. Unfilled gaps, where the price continues moving in the direction of the gap, often signal persistent momentum and strong buying or selling pressure.

Using Oliver Kell’s Screener Presets in Deepvue

To make finding stocks easy, Deepvue partnered with Oliver Kell, and other top traders, to bring you his daily screens.

In the Screener module, navigate to the Screener Preset tab and type Oliver Kell. You will see all the available screens Oliver Kell uses to find top-performing stocks.

Favorite any screen to pin it to the top of your Watchlist module by clicking the Star. Click the three dots to Duplicate any screen into your Saved Screens to make it your own.

Key Takeaways from Oliver Kell to Screen for Leading Stocks

Focus on High-Growth Stocks with Strong Fundamentals

• Oliver Kell follows William O’Neil’s CANSLIM approach, prioritizing stocks with 30%+ earnings and sales growth, ideally triple-digit growth with accelerating sales, ensuring sustained uptrends.

Use Price and Volume to Confirm Strength

• Strong stocks form higher highs and higher lows, with rising volume on up days, confirming institutional interest and high-probability entry points.

Follow the Cycle of Price Action

• Oliver Kell’s strategy revolves around the 10- and 20-day EMAs, identifying key buy and sell signals through repeatable patterns like Wedge Pop, EMA Crossback, and Base n’ Break.

Leading Stocks Offer the Best Opportunities

• Market leaders break out ahead of the indexes, recover faster, and attract institutional buying, making them ideal for big, sustained gains.

Essential Criteria for Stock Screening

• Oliver Kell screens for stocks with $20+ price, 500K+ daily volume, and $2B–$25B market cap, ensuring liquidity, strong technicals, and exceptional fundamentals.
• He uses screeners to identify 52-week highs (momentum stocks), Bull Snorts (high volume), Doublers (stocks that double), Gappers (catalyst-driven moves), and Relative Strength stocks.