Leading Leaders: RS / 52W / EPS+Sales + Volume (Clustered)

Leading Leaders – Multi-Factor Institutional Strength & Accumulation Framework

This indicator is a multi-factor leadership and accumulation framework designed to identify stocks that are behaving like institutional leaders, not just showing temporary strength.

It is not a mashup of unrelated indicators.
Each component measures a different dimension of leadership, and the script combines them into a structured scoring and clustering model to identify persistent, high-quality candidates suitable for swing trading, momentum continuation, and breakout anticipation.

🔹 Core Idea

True leaders show repeated constructive behavior, not one-day spikes.

This script evaluates four independent dimensions of leadership on every bar and then measures persistence over time using a rolling cluster score.

The goal is to answer one question clearly:

Is this stock consistently behaving like a leader while institutions are accumulating?

🔹 Components Explained
1) Relative Strength (RS Approximation)

The script compares the stock’s daily performance against a benchmark index over a configurable lookback period and normalizes it.

This identifies stocks that are outperforming the broader market, similar in concept to RS ranking models used by professional momentum traders.

2) Proximity to 52-Week High

Strong leaders tend to trade near their highs, not deep below them.

The script checks whether price is within a defined percentage of its 52-week high, filtering out structurally weak stocks.

3) Fundamental Growth (EPS & Sales)

Institutional leadership is usually backed by real business growth.

The script evaluates:

EPS YoY growth

EPS QoQ growth

Sales YoY growth

Only stocks meeting minimum growth thresholds contribute to the leadership score.

4) Volume Health (Accumulation Logic)

Instead of using raw volume spikes, the script evaluates contextual volume behavior:

Advances with expanding volume → institutional participation

Pullbacks or tight bars with contracting volume → lack of selling pressure

This aligns with accumulation principles used by O’Neil, Minervini, and professional momentum traders.

🔹 Leadership Scoring Model

Each bar receives a binary score for each component:

Relative Strength

52-Week High Proximity

Fundamental Growth

Volume Health

Each bar scores 0–4 points.

This creates a daily leadership score, not a trade signal.

🔹 Cluster Scoring (Persistence Filter)

Rather than acting on a single bar, the script computes a rolling cluster score across recent bars.

The cluster score represents:

How often the stock has shown leadership behavior recently

This persistence filter is what separates:

one-day wonders
from

true institutional leaders under accumulation

Stocks triggering strong cluster conditions have shown repeated strength, not isolated spikes.

🔹 Visual Design Philosophy

This script is intentionally designed for clarity and scan-ability:

Background shading highlights leadership intensity

Bar coloring emphasizes strongest conditions

Optional labels summarize why a bar qualifies

No external indicators are required, and the chart remains clean and readable.

🔹 How to Use

This indicator does NOT generate buy/sell signals.

Typical professional use cases include:

Building watchlists of high-quality leaders

Identifying accumulation before breakouts

Filtering for momentum continuation candidates

Avoiding low-quality or noisy stocks

Market condition analysis during weak breadth environments

Best suited for:

Daily and higher timeframes

Swing trading

Momentum and breakout strategies

⚠️ Important Notes

This is a research and analysis tool, not a trading system.

No future data is used; calculations are non-repainting.

Always combine with market context, risk management, and execution rules.

✅ Why This Script Is Original

Uses a multi-dimension leadership framework, not a single indicator

Focuses on behavioral persistence (cluster scoring) rather than point-in-time signals

Applies contextual volume logic, not raw volume spikes

Designed specifically for leader identification and accumulation analysis

This combination and scoring methodology is not a direct reproduction of any single open-source script and is intended to provide structured insight into institutional stock behavior.