Momentum is structural

Momentum is the speed or velocity of price changes in a stock, security, or tradable instrument.

Momentum shows the rate of change in price movement over a period of time to help investors determine the strength of a trend.

Momentum = Price today - Price n periods ago

Momentum measures the velocity of price changes as opposed to the actual price levels themselves.

Momentum is tendency of stocks to move in direction of established trend.

Momentum is universal phenomenon

Momentum on 3 6 12 month tends to last for next 3 6 12 months.

Momentum on short time frame of less than one month is mean reverting

Momentum on 10 days or less timeframe with magnitude of 205 plus is even more likely to mean revert

Momentum on longer duration of 3 years plus tends to mean revert

Momentum is usually calculated as ratio of price to MA or as ratio of 2 moving averages

Momentum can be absolute (TI65 above 1.05 or MDT above 1.18) or relative when used to rank

Momentum used as absolute momentum tells you when it started and ended

Momentum used as sort only tells you how stock is ranked relative to other stocks

Momentum is used to narrow trading universe by focusing on stocks with high or low momentum

Momentum relative to S&P is used to select stocks in many methods

Momentum typically when used on 6 month timeframe is used with one month lag as one month momentum has strong mean reverting tendency (MDT25 is example of this c25/avgc126.25)

Momentum is used to isolate Top 25 or Top 50 or Top 200 stocks and then that list is used to find anticipation or pullback setups

Momentum is the most persistent tendency of stocks across world market

Momentum on lower priced stock is of higher magnitude

Momentum on higher priced stock tends to be lower

Momentum on low liquidity stocks tend to be higher

Momentum on high liquidity stock is lower

Momentum is foundation of Top 25 method

Momentum is the structural tendency exploited in ROC TI65, MDT , DT and 3/300

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

404

Recent Articles