Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
Concepts & Tutorials

Identifying Promising Stocks using Capitalmind Outliers


Fish where the fish are

Capitalmind Outliers is our in-house screening tool that helps discover stocks using a combination of trend and momentum signals.

While it’s not a model portfolio or an investing strategy in itself—it’s a discovery tool that helps you know where to fish.

The platform uses proprietary composite scores, called “Grades”, to highlight stocks that are technically strong. Think of the Grades as weighted averages of:

  • Short-term factors, such as bollinger band crossovers, MACD crossovers, relative strength index, unusual volumes, and the frequency with which a stock is making new monthly highs.
  • Long-term factors, such as the frequency with which a stock is making new 52 week, and all-time highs. Note here that the numbers in brackets represent the frequency, that is, “All Time High (2/30)” indicates that the stock has made a new all-time high twice in the last 30 days.

Identifying Promising Stocks using Capitalmind Outliers

These factors, used to calculate a stock’s given Grade, are articulated under ‘Outlier indicators’. The weights assigned to each factor is the secret sauce, which stays secret.

Identifying Promising Stocks using Capitalmind Outliers

In the Bullish tab, stocks with higher grade have stronger bullish trend in their favor, while stocks with lower grades have weaker bullish trend with them. By default, the platform will show you the bullish tab sorted by the highest grade, but this can be changed using the ‘Bullish’ or ‘Bearish’ switches at the top.

To be clear, in the bearish tab, stocks with higher grade have stronger bearish trend, and vice versa.

Identifying Promising Stocks using Capitalmind Outliers

Some handy tips

  • The platform shows you line charts of the stock prices for the past week, but you can click on the exchange tickers to open up a Trading View chart for the stock.

Identifying Promising Stocks using Capitalmind Outliers

  • If you’re looking for how constituents of a sector are scoring on Outliers, you can sort the list by sector.

Identifying Promising Stocks using Capitalmind Outliers

  • While there’s no export option, you can simply copy the text from the table, and paste it into an Excel spreadsheet.

Identifying Promising Stocks using Capitalmind Outliers

Frequently asked questions

Q: How frequently does Capitalmind Outliers update?

The Capitalmind Outliers platform itself is updated real-time, with some delay.

Q: How frequently are the values of the Outlier Indicators updated?

The values of the factors used to calculate Grades are updated based on the factors themselves. For instance, the values for 20DMA in a “Volumes greater than 5 * 20DMA” factor would intuitively be calculated based on closing prices of the last 20 days.

Q: How are Outliers In Focus selected for the Saturday Coffee newsletters?

Every week, we discuss what’s behind a stock from Capitalmind Outliers on our newsletter. This stock is picked at our discretion from the list as of  Thursday close, and is typically a stock that’s telling a story fundamentally, and technically.

Click here to subscribe and receive the newsletter every Saturday.

In case you missed the past editions of the newsletter, and wish to read about previous Outliers In Focus, we have talked about:

To get access to Capitalmind Outliers, our model portfolios, and the community slack, subscribe to our premium plan.

If you’re already a subscriber, you can find the Capitalmind Outliers platform on our dashboard here.


Like our content? Join Capitalmind Premium.

  • Equity, fixed income, macro and personal finance research
  • Model equity and fixed-income portfolios
  • Exclusive apps, tutorials, and member community
Subscribe Now Or start with a free-trial