What are Momentum Stocks?
When a stock has rallied quickly and has the potential to swing either way for a while, it is said to be in momentum stocks. Theoretically, we might presume that a certain stock may continue its trend further if it is gaining momentum.
There is a fair chance that we will make good profits if we identify the stocks with significant momentum and establish a position in them.
Features available in the Momentum Stocks
You may identify stocks with significant momentum using the Momentum Stocks tool. You can also get key technical data for the stock, including volumes, RSI, ADX, Previous 5-day candle, Outperformance score, Momentum score, Sector Momentum rank, and sector rank right now. The two are interchangeable: stocks and indices.
Stock Momentum Rank: The stock with Momentum Score Measures the Momentum of a stock based on its past returns.
Stock Outperformance Score: It measures how the stock has performed in the last 55 trading sessions compared to Nifty. If the rate of returns is higher than the Nifty returns then the stock will have a lower Rank.
Sector Momentum Score: Measures the Momentum of all Indices. Higher the momentum lower the rank (1 being the strongest)
Sector Rank today: It shows the top-performing sectors for today. 1 being the strongest sector
How to trade using Momentum Stocks of IntradayScreener?
To use the Momentum stocks feature, you need to try to list down the stocks which have the lowest outperformance momentum rank (1 being the lowest & strongest sector or stock).
There is an option where you can view the outperformance score (OPscore-N) in the momentum indicator list.
If the OPscore of a stock is high, then it could be considered a strong stock that is in good momentum.
If the OPscore of a stock is low, then it is considered a weak stock.
Now when you see a technical structure (5D- Candles) happening in a stock, which is bullish or bearish, it is recommended to take the position.