Momentum

31st Oct '21 by gmtrader

1 comment 267 reads

Momentum is clearly the winning statistic to follow though investor tend towards value and quality.
Stock with a high momentum score are said to keep rising for 6-12 months.
Is there a way of identifying a stock that would be in the first 3 months of that 6-12 month run?

How quickly does the momentum score reverse? For instance, does it shoot up quickly or take a slow steady climb where you could potentially spot a reversal.

Also, would a momentum score of 99 be a bad stock to buy into on the bases it has been rising for months already?

Is there any way to see stock ranks from a month or a year ago to compare and try and see any patterns?

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Rusty2

31st Oct '21

It varies some go up for a short time and Then down again but others go on for quite a long time, years. Look at Ashtead (LON:AHT) For this sort of thing it’s probably best to study the charts. To check on history you can see on the print facility older stockreports, no need to actually print them.

As to when to buy I would again study the chart. I tend to blend MOMentum with Quality, so top QM scores. I prefer stocks that have a steady upwards trend rather than spikes up and down. I would avoid shares where the chart is almost vertical as these tend to fall back, unless there is a strong reason for it.

Ergomed (LON:ERGO) may be a good one to study, that had a good run for around 2 years but has levelled off this year.

Momentum

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Gmtrader

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