Does relative strength matter if trading momentum bursts | stockbee

9/10/2014

Does relative strength matter if trading momentum bursts


We learn by revising and revisiting our assumptions and beliefs. This is a continuous process. As we get exposed to new information we revise our current thinking. This process starts from birth and continues in most adults till they die unless they join some cult.

We must ask certain questions in the context of swing trading. In swing trading I am interested in a 5 day move of 8 to 40% or 5 dollar plus in a stock. Those are the only stocks of interest to me for swing trades. 

With that contest one must ask certain questions about stock behaviour. To begin with let us ask just one question.

Does relative strength matter if trading momentum bursts?

The answer we can find ourselves by going through stocks up 8% plus in last 5 days. To do that in Telechart you can run two scans. 

Bullish 8% plus or 5 dollar plus in 5 days

c/c5>=1.08 or c-c5>5 and minv3.1>100000 and c>=5

Bearish 8% plus or 5 dollars plus in 5 days

c/c5<.92 or c5-c>5 and minv3.1>100000 and c>=5

That is just one day of data , if you are really serious then you can study this for years worth of data. From the study you will be able to answer the question: Does relative strength matter if trading momentum bursts?

And the answer is .....

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