StockCharts Technical Rank (SCTR)

AAA

DEFINITION of 'StockCharts Technical Rank (SCTR)'

A numerical ranking for individual stocks in different groups - large cap, mid cap, small cap, U.S. ETFs and Toronto stocks - showing the stock's overall strength based on six technical indicators covering various timeframes. It is also known as the Channellines Technical Rank.

The StockCharts Technical Ranking (SCTR) was created by John Murphy, a technical analyst and author, and is available on StockCharts.com. It is created using the following formula and weightings:

Long-Term Indicators (weighting)
Percent above/below 200-day SMA (30%)
125-Day Rate-of-Change (30%)
 
Medium-Term Indicators (weighting)
Percent above/below 50-day SMA  (15%)
20-day Rate-of-Change (15%)
 
Short-Term Indicators (weighting)
 3-day slope of PPO-Histogram (5%)
 14-day RSI (5%)

INVESTOPEDIA EXPLAINS 'StockCharts Technical Rank (SCTR)'

Investors choose the group they wish to analyze, which provides a list of stocks within that group ranked from 0 to 99.99. A score of 99.99 means the stock is performing extremely well compared to its peers. 0 is the weakest score, indicating the stock is severely underperforming its peers in the group.

Traders typically want to buy strong stocks, or stocks increasing in SCTR ranking, while selling or shorting stocks that have a weak SCTR ranking.

The SCTR formula covers different timeframes, and a stock must score well on all of them to receive a high score. The most weight is given to the longer-term indicators, since the long-term trend is a more dominant force than short-term fluctuations.

The SCTR compares a stock to its peers, not to a specific benchmark such as the S&P 500 index.

RELATED TERMS
  1. Business Cycle Indicators - BCI

    Composite of leading, lagging and coincident indexes created ...
  2. Composite Index of Leading Indicators

    An index published monthly by the Conference Board used to predict ...
  3. Composite Index Of Lagging Indicators

    An index published monthly by the Conference Board that is used ...
  4. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses ...
  5. Composite Index of Coincident Indicators

    An index published by the Conference Board that is a broad-based ...
  6. Fintech

    Fintech is a portmanteau of financial technology that describes ...
Related Articles
  1. Trading Strategies

    Using Compound Indicators To Predict Market Fluctuations

    Learn how to combine average true range, simple moving average and Bollinger band indicators to gauge market volatility.
  2. Active Trading

    Using Trading Indicators Effectively

    Select multiple indicators, avoid information overload and optimize indicators to effectively use technical analysis tools.
  3. Forex Education

    Forex Market Sentiment Indicators

    Sentiment Indicators are another tool that can alert traders to extreme conditions.
  4. Options & Futures

    Trading Around Key Options Indicators

    Learn the key economic indicators to help predict market movement.
  5. Fundamental Analysis

    Deadly Flaws In Major Market Indicators

    These indicators give investors and experts some data to work with, but they're far from perfect measures.
  6. Technical Indicators

    Using Technical Indicators To Develop Trading Strategies

    Unfortunately, there is no perfect investment strategy that will guarantee success, but you can find the indicators and strategies that will work best for your position.
  7. Mutual Funds & ETFs

    How To Apply Technical Indicators To Mutual Funds

    Mutual funds do not readily lend themselves to technical analysis, but investors can use common indicators to evaluate mutual funds as easily as stocks.
  8. Stock Analysis

    A Trader's Look at the S&P 500

    Moving averages are sending an important signal, and it's probably not what you think.
  9. Stock Analysis

    How Boeing is More Than Just a Coach-Class Seat

    The number of market leaders that indisputably dominated their industry in 1916 and still do today is almost nonexistent — except for Boeing.
  10. Chart Advisor

    Is Now the Time to Invest in North America?

    Bullish chart patterns across the North American markets suggest that now might actually be a wise time to allocate closer to home.

You May Also Like

Hot Definitions
  1. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  2. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  3. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  4. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  5. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  6. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
Trading Center