# StockCharts Technical Rank (SCTR) ## What is the StockCharts Technical Rank? The StockCharts Technical Rank (SCTR) is a numerical score that ranks a stock within a group of stocks. It is a powerful tool for comparing the technical strength of one stock against all the stocks in its peer group. It separates the strong performers from the weak ones and is a significant part of a successful trading or investing strategy. The methodology for these rankings comes from the wisdom of John Murphy, author of many books on technical analysis. Stocks are assigned a score based on six key indicators covering different timeframes. These indicator scores are then sorted and assigned a technical rank ranging from 0.0 to 99.9. Using SCTR reports, chartists can sort stocks according to their technical rank, making it easy to identify the technical leaders and laggards within a specific group. In addition, historical SCTR values for a specific security can be added to charts, in order to analyze the relative strength of that stock or ETF over time.

Chart showing historical SCTR rankings for Microsoft, the Software industry, and the Technology sector.

As with all technical indicators, SCTRs are designed to be used with other indicators and analysis techniques. For example, you can use SCTRs as a filter when there are too many signals, weeding out stocks showing relative weakness, and providing a manageable subset for further analysis. ## Calculating SCTRs It takes two steps to calculate the StockCharts Technical Rank (SCTR). First, each stock in the group is “scored” based on six different technical indicators. Then, the group of stocks is ranked within the group based on their score and assigned a ranking number. {% hint style="success" %} During the trading day, SCTRs are recalculated every two to three minutes. {% endhint %} ### Scoring the Stocks Six indicators are used to evaluate and score the stocks or ETFs in the group: two long-term indicators, two medium-term indicators, and two short-term indicators. The box below details these indicators, the relevant timeframes, and the weighting of each indicator. ``` Long-Term Indicators (weighting) -------------------------------- * Percent above/below 200-day EMA (30%) * 125-Day Rate-of-Change (30%) Medium-Term Indicators (weighting) ---------------------------------- * Percent above/below 50-day EMA (15%) * 20-day Rate-of-Change (15%) Short-Term Indicators (weighting) --------------------------------- * 3-day slope of PPO(12,26,9) Histogram/3 (5%) * 14-day RSI (5%) ``` Except for the 3-day slope of the PPO-Histogram, the raw numbers are multiplied by the weighting to calculate the indicator score. For example, if a stock is 15% above its 200-day [moving average](/table-of-contents/technical-indicators-and-overlays/technical-overlays/moving-averages-simple-and-exponential.md), then 15 will be multiplied by the weighting for this component (30%), contributing 4.5 points to the total indicator score (15 x 0.30 = 4.5). If the 20-day [Rate-of-Change](/table-of-contents/technical-indicators-and-overlays/technical-indicators/rate-of-change-roc.md) is -7%, then -7 will be multiplied by the weighting for this component (15%), contributing negative 1.05 points to the total indicator score (-7 x 0.15 = -1.05). For the PPO-Histogram, if its slope is greater than +1 (i.e., +45 degrees), 5 points (5% of 100) are contributed to the total indicator score. If the PPO-Histogram's slope is less than -45 degrees, 0 points are contributed to the score. Otherwise, 5% of ((Slope + 1) x 50) is contributed. All six weighted scores are added together to produce an indicator score for each stock or ETF in the group. ### Ranking the Stocks After this first calculation round, StockCharts.com then ranks these stocks by their indicator score. Keep in mind that these stocks are ranked solely within their group, such as large-caps, mid-caps, or small-caps. This article will first show a simplified example using 10 stocks sorted by indicator score. The stock with the highest score gets the highest technical rank (10), while the stock with the lowest score gets the lowest technical rank (1). The rankings are then filled in according to the indicator score.
Of course, most SCTR groups have many more than ten securities in them, so the StockCharts Technical Rank gets much more granular. First, the rankings extend from 0.0 to 99.9, with 0.0 being the absolute weakest and 99.9 being the absolute strongest. No stock will score a perfect 100. Second, StockCharts.com creates “buckets” (akin to percentiles) to sort the stocks within a group. Using an example with a universe of 500 stocks, 10 equal buckets would be created, and each bucket would have 50 stocks (50 x 10 = 500). The 50 stocks with the lowest indicator scores go into the bottom bucket and have SCTRs ranging from 0.0 to 9.9. The 50 stocks with the highest indicator scores go into the top bucket and have SCTRs ranging from 90.0 to 99.9. Each bucket will then be filled accordingly and further sorted within the bucket. The end result is 500 stocks ranked from 0.0 to 99.9 and spread relatively evenly across the ranking pool.
{% hint style="success" %} **Cool Tip:** Wherever they appear on our site, SCTR scores are color-coded according to these buckets. The strongest SCTR scores are dark green, while the weakest are dark red. {% endhint %} ## SCTR Universes In order for a stock to be ranked relative to its peers and receive a SCTR value, it must first belong to a group of its peers. SCTR Universes are large groups of stocks established by StockCharts.com for the purpose of relative strength ranking. A stock can only belong to one SCTR Universe at a time. Currently, we use country and/or market capitalization to determine which universe a stock belongs to. Here is a list of the current SCTR universes that we support: * **Large-Cap:** US stocks with a market cap over $10 billion * **Mid-Cap:** US stocks with a market cap between $2 billion and $10 billion * **Small-Cap:** US stocks with a market cap between $250 million and $2 billion * **ETF:** Non-leveraged US ETFs * **Industries:** US industries, represented by Dow Jones US Industry Indices * **Toronto:** Canadian stocks that trade on the Toronto Stock Exchange and have significant market cap * **London:** Stocks that trade on the London Stock Exchange and have significant market cap * **India:** Stocks that trade on the National Stock Exchange of India and have significant market cap Not every ticker symbol in our database is included in a SCTR universe. Here are a few things to keep in mind about the makeup of our SCTR universes: * SCTR Universes for US stocks are defined based on market capitalization. As a result, these universes will not always exactly match, for example, S\&P Large-, Mid-, and Small-Cap indices. This is because S\&P also considers other criteria, such as quality and liquidity, for inclusion in their indices. * We do not explicitly define a minimum market cap for the Toronto, London, and India universes. To keep the number of ranked stocks manageable, we do not include all stocks from a particular exchange. The exact market cap cut-off for those universes changes from year to year, depending on the number of stocks that qualify for each universe. * Leveraged and inverse exchange-traded funds (ETFs) are excluded from the SCTR rankings for the ETF universe. Above-average volatility and inverse movements skew the results. The VIX ETF (VXX) is also excluded because it moves inversely to the S\&P 500. The SCTR Universes are “re-balanced” monthly, adding new symbols, removing old ones, and occasionally moving symbols to a different universe. To prevent stocks from changing into a different universe on every rebalancing because they are hovering around the cut-off levels between the different universes, a stock must qualify for the new universe for a minimum of three consecutive months before being reclassified. ## The SCTR's Component Indicators The indicator score that is ranked to determine the SCTR value is composed of six weighted indicator values across multiple timeframes. These six indicators give a comprehensive overview of the long-, medium-, and short-term health of each security in the SCTR universe. ### SCTR Long-Term Indicators There are two percentage-based long-term indicators. The first long-term indicator score accounts for a stock's distance from its [200-day moving average](/table-of-contents/technical-indicators-and-overlays/technical-overlays/moving-averages-simple-and-exponential.md). A stock is in a long-term uptrend when it is above the 200-day moving average and in a long-term downtrend when it is below. The distance from the 200-day moving average line determines the trend's strength. A strong uptrend is present when price is well above the 200-day. Conversely, a strong downtrend is present when price is well below the 200-day. The 125-day Rate-of-Change is the second long-term indicator. This simple indicator measures the percentage price change over the last 125 days, which is around six months. Strong stocks will show the largest gains, while weak stocks will show the largest losses. It is a straight-forward indicator designed to measure pure strength or weakness. The first chart shows United Microelectronics (UMC) with the 200-day moving average and the 125-day Rate-of-Change indicator. At the time this chart was created, UMC had an SCTR score of 96.7. Price was over 65% higher than its moving average and the Rate-of-Change was above 100%. Such strength in these long-term indicators packs a big positive punch for the technical rank.

Long-term SCTR component indicators for a high-ranking stock

The second chart shows Abbott Laboratories (ABT) with the same indicators, but a different technical picture. Note that ABT has a SCTR score of 2.5, which is in the bottom 10%. The stock is trading over 20% below its 200-day average and the 125-day Rate-of-Change is below -30%. ABT recently hit a new 52-week low, which is indicative of a long-term downtrend. This weakness is clearly confirmed by the low technical rank.

Long-term SCTR component indicators for a low-ranking stock

### SCTR Medium-Term Indicators The next two indicators cover the medium-term picture. A 50-day moving average covers around 2 1/2 months of trading. A stock is trending higher when above the 50-day moving average and trending lower when below the 50-day. This positive effect is compounded when a stock trades above the 200-day *and* 50-day averages. The converse is true when a stock is trading below both moving averages. The 20-day [Rate-of-Change](/table-of-contents/technical-indicators-and-overlays/technical-indicators/rate-of-change-roc.md) measures the percentage price change over a 20-day period, which is about a month. Again, stocks with big positive price changes over a 20-day period show above-average strength that will be reflected in the technical rank. A big decline over a 20-day period would negatively affect the technical rank. The first chart shows United Microelectronics (UMC) with the 50-day EMA and 20-day Rate-of-Change indicator. Remember, UMC had an SCTR score of 96.7 at the time this chart was created. Medium-term, price was over 35% above its 50-day average and the 20-day Rate-of-Change was greater than 60%. Those are mighty strong numbers.

Medium-term SCTR component indicators for a high-ranking stock

The second chart shows Abbott Laboratories (ABT) with the same indicators, but a completely different technical picture. Remember, ABT had a SCTR score of 2.5 on May 6. The stock was trading over 10% below its 50-day moving average and the 20-day Rate-of-Change was below -15%. These poor numbers helped keep ABT's technical rank in the bottom 10%.

Medium-term SCTR component indicators for a low-ranking stock

### SCTR Short-Term Indicators The two short-term indicators account for 10% of the indicator score. First, [14-day RSI](/table-of-contents/technical-indicators-and-overlays/technical-indicators/relative-strength-index-rsi.md) is used to gauge short-term momentum. Developed by Welles Wilder, this classic momentum oscillator fluctuates between 0 and 100. High levels (above 60) reflect bullish momentum while low levels (below 40) indicate bearish momentum. The 3-day slope of the PPO-Histogram is also used to gauge short-term momentum. The [Percentage Price Oscillator (PPO)](/table-of-contents/technical-indicators-and-overlays/technical-indicators/percentage-price-oscillator-ppo.md) measures the percentage difference between the 12-day EMA and the 26-day EMA of a stock. The PPO-Histogram is the difference between the PPO and its 12-day EMA. In a sense, the PPO measures momentum, and the PPO-Histogram measures the momentum of the PPO. Taking this indicator one step further, the 3-day Slope of the PPO-Histogram measures the degree of change in the PPO-Histogram over three days. The slope is the rise over the run (rise/run), the 3-day change in the PPO-Histogram divided by three. SharpCharts does not have an indicator for this, but a quick look at the charts tells you if the slope is positive or negative. You can also see when the slope is relatively steep or flat. A steep slope reflects a sharp change, while a flat slope reflects a slight change. The first chart shows United Microelectronics (UMC) with 14-day RSI and the Percent Price Oscillator (PPO) with its histogram in the indicator panels. Keep in mind that UMC has a SCTR score of 96.7. RSI shows strength because it was trading above 70 at the time. This strong reading contributed to the high technical rank for UMC. The last three bars of the histogram define the slope. There is a sharp rise from the first bar to the third, which is a positive slope.

Short-term SCTR component indicators for a high-ranking stock

The second chart shows Abbott Laboratories (ABT) with the same short-term indicators. Remember, ABT had a SCTR score of 2.5. Its 14-day RSI has been relatively flat, but remains below 30. Short-term momentum is neutral at best, slightly bearish at worst. The 3-day slope for the PPO-Histogram is also relatively flat. This indicates that the 3-day slope of the PPO-Histogram is not contributing that much to the indicator score. Additionally, keep in mind that this indicator accounts for just 10% of the total score.

Short-term SCTR component indicators for a low-ranking stock

## Interpreting the SCTR The SCTR indicator score is unique and powerful because it accounts for several timeframes, rather than being tethered to a specific one. A stock must score well with all indicators and all timeframes to earn a top indicator score and technical rank. The indicator score puts more weight on the two long-term indicators, which account for 60% of the total score. This is because the long-term trend is the strongest force. The weightings decline as scoring moves to the short-term indicators. The medium-term indicators account for 30% and the short-term indicators account for 10%. Together, the long-term and medium-term indicators account for 90% of the total score. The SCTR allows you to quickly assess relative strength over time for a specific security, or review current SCTR values for all securities to easily spot the strongest contenders. ### Finding Strong Performers In any given SCTR universe, the top 10% will rank between 90.0 and 99.9, while the bottom 10% will rank between 0.0 and 9.9. A stock scoring 50.0 would be average, showing neither relative strength nor relative weakness. In general, scores between 40 and 60 are considered average. Signs of technical weakness start to appear as scores move below 40. Signs of technical strength emerge when scores move above 60. Viewing the ranking of all stocks or ETFs in a SCTR universe, using a tool like the [SCTR Reports](https://stockcharts.com/freecharts/sctr.html), allows you to quickly spot the strongest performers in that group. Relative strength is often assessed by comparing a stock to a benchmark index, but this has its hazards. Indices, such as the S\&P 500, are dominated by a relatively small number of large-cap stocks and may not truly reflect the market as a whole. With the StockCharts Technical Rank, however, each stock is assessed relative to other individual stocks in the group, rather than compared to the group as a whole. In this regard, you can see how a stock like Apple is performing relative to Amazon, or IBM, or any other large-cap stock. ### Identifying Strong Moves Earlier in this article, we looked at several charts of UMC and ABT, analyzing each of the six SCTR component indicators for those two stocks. But the SCTR score synthesizes all that information, weights it appropriately, compares it to the values for similar stocks, and presents the information much more concisely. The chart below shows United Microelectronics (UMC) with the SCTR indicator added to the chart. That one panel can tell us at a glance that UMC is doing quite well across multiple timeframes compared to its peers. It can also show us how UMC's SCTR score has changed over time. Six months ago, it was much weaker, flirting with entering the "red zone" at the bottom of the SCTR universe in mid-November. Chartists often look to buy when the SCTR score crosses above 70. The strong jumps in SCTR score in early January or April would have been good times to buy.
The second chart shows Abbott Laboratories (ABT) with the same SCTR indicator. We can quickly determine that ABT is not thriving across any timeframes and has been at the bottom of the rankings for months.
When a SCTR value remains at the same level for a long time, it means the stock or ETF is consistently outperforming or, in the case of ABT, underperforming its peers. ## The Bottom Line The StockCharts Technical Rank (SCTR) separates the wheat from the chaff. Relative strength is an important part of a successful trading or investing strategy. Based on the wisdom of John Murphy, SCTR allows chartists to compare the technical strength of one stock against all the stocks in its peer group. Chartists can also group stocks according to the technical rank. Stocks in the top 30% will have a technical rank of 70 or higher. Chartists can then focus on these relatively strong stocks for potential long positions on pullbacks. Conversely, chartists can use the technical rank to avoid weak stocks, such as those with a technical rank below 40. As far as new trends emerging, chartists can look for stocks with technical ranks moving out of the middle zone (40–60). A move above 60 would show relative strength improving, while a move below 40 would show an increase in relative weakness. As with all technical tools, SCTR should be used in conjunction with other aspects of Technical Analysis. *** ## Charting with SCTRs ### Using with SharpCharts The SCTR Line is available as a SharpCharts indicator that can be placed above, below or behind the price plot of the underlying security. By default, the "RAINBOW" parameter adds a color-coded background to the indicator panel, easily showing whether the SCTR scores are high (in green) or low (in red). [Click here for a live version of the chart.](https://stockcharts.com/sc3/ui/?s=EXPE\&a=2260300258\&p=D\&st=2025-11-07\&id=p43806898271)
By default, the chart shows the SCTR values for the chart's main symbol. An optional parameter allows you to show the SCTR value for a different symbol. The chart at the beginning of this article uses three SCTR panels configured with $SYMBOL, $INDUSTRY, and $SECTOR for their optional symbol parameters, in order to show SCTR values for the chart's main symbol, its industry, and its sector, all in one chart. {% hint style="info" %} **Learn More:** For more details on the parameters used to configure SCTR indicators, please see our [SharpCharts Parameter Reference](https://help.stockcharts.com/charts-and-tools/sharpcharts/sharpcharts-workbench/editing-sharpcharts/sharpcharts-parameter-reference#sctr_line) in the Support Center. {% endhint %} ### Using with StockChartsACP This indicator can be added from the Chart Settings panel for your StockChartsACP chart. The indicator can be positioned above, below, or behind the security's price plot.
[Click here for a live version of this chart.](https://schrts.co/JXKPMeeC) By default, this indicator is calculated using the main chart's symbol, but this parameter can be adjusted to show SCTR values for different symbols. ## Comparing SCTRs ### Using the SCTR Reports Tool The [SCTR Reports](https://stockcharts.com/freecharts/sctr.html) tool can be used to quickly compare all the stocks or ETFs in a specific SCTR universe. Choose your universe, select your timeframe (end-of-day, intraday, or weekly), and dig in to the data. You can sort a column by clicking on the column header. By default, the report is sorted by SCTR, with the strongest scores at the top. It can be useful to sort by the CHG column, which shows the percentage change in SCTR values from one period to the next, in order to find the biggest movers in the rankings.
{% hint style="info" %} **Learn More:** [SCTR Reports](https://help.stockcharts.com/charts-and-tools/research-tools/stockcharts-technical-rank-sctr-reports) {% endhint %} ## Scanning for SCTRs StockCharts members can screen for stocks based on SCTR values. Below are some example scans that can be used for SCTR-based signals. Simply copy the scan text and paste it into the Scan Criteria box in the [Advanced Scan Workbench](https://stockcharts.com/def/servlet/ScanUI). Members can also set up alerts to notify them when a SCTR-based signal is triggered for a stock. Alerts use the same syntax as scans, so the sample scans below can be used as a starting point for setting up alerts as well. Simply copy the scan text and paste it into the Alert Criteria box in the [Technical Alert Workbench](https://stockcharts.com/h-al/al). ### SCTR Crossing Above 90 This scan reveals stocks where the SCTR for a US stock has just crossed above 90. The 'or' clause includes all US stocks with SCTR values, regardless of market cap. ``` [type = stock] AND [country = US] AND [Daily SMA(20,Daily Volume) > 40000] AND [Daily SMA(60,Daily Close) > 20] AND [[SCTR.large x 90] OR [SCTR.mid x 90] OR [SCTR.small x 90]] ``` ### SCTR Has New High This scan reveals US ETFs that are having a new 6-month high SCTR value. Because the scan covers a limited number of securities in a single SCTR universe, the typical scan clauses for defining the universe are not necessary here. ``` [today's SCTR.us.etf > yesterday's max(120,SCTR.us.etf)] ``` {% hint style="info" %} **Learn More:** For more details on the syntax for SCTR scans, please see our [Scanning Indicator Reference](https://help.stockcharts.com/scanning-and-alerts/scan-writing-resource-center/scan-syntax-reference/scan-syntax-price-volume-and-sctrs#sctr) in the Support Center. {% endhint %} ## Additional Resources ### StockCharts In Focus The following *StockCharts In Focus* video, “Pinpoint the Strongest Stocks with SCTRs”, takes a deep-dive into all the different ways you can use SCTRs on StockCharts, including the SCTR reports, scanning for SCTRs, and charting with SCTRs on both SharpCharts and StockChartsACP. {% embed url="" %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://chartschool.stockcharts.com/table-of-contents/technical-indicators-and-overlays/technical-indicators/stockcharts-technical-rank-sctr.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.