About our 'Momo Momentum' Strategy

The 'Momo Momentum' strategy detects opportunities for stocks that meet the following conditions:


  •  Where the dollar value is at least $150M/day.
  •  Where the open was between 0.5% and 10% above the previous close.
  •  Where the price is at least 150% above the low of this range.
  •  Where the prise is at least 65% above the low of the 5 day range.
  •  Where the prise is at least 75% above the low of the 20 day range.
  •  Where the prise is at least 75% above the low of the 52 week (yearly) range.
  •  Where the earmings per share is at least $0.50 per share.
  •  Where the price / earnings ratio is at least 30.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.




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