This technique combines the use of a Moving Average (MA) with Relative Strength (RS). It is based on selecting a stock that performs better over a given period than the related index, and that this stock exceeds its (mostly long-term) MA. This method is a loose interpretation of the book Profiting in Bull and Bear Markets, by Stan Weinstein. The aim of this technique is to select stocks that are market favourites at that moment. Stocks that stand out relative to other stocks in terms of their upward movement, thus have a positive momentum. This is similar to other momentum strategies, except that it includes a technical analysis component in the form of the MA. The RS is used to select stocks with better momentum than the index. The MA ensures that only those stocks remain that are also healthy in technical terms. This prevents stocks being selected that may have passed their technical peak despite scoring high on momentum over a certain period. Commonly used values are an RS over 1 year and an unweighted MA of 150 days. This strategy is not designed to be limited to a single stock. To reduce risk, we can select multiple stocks within a certain index. This selection must be updated after a given period, 3 or 6 months, for example. This update should be carried out unemotionally and entirely mechanically. It is tempting to retain a favored stock in portfolio, but this undermines the strategy. In practice, this method indeed appears capable of beating the AEX Index with relatively few trades.