Info!! A Farther Expect At Short-Term Stock Marketplace Momentum

I of late took an initial await at stock momentum, finding that markets that complete the 24-hour interval rigid (weak) tend to merchandise higher upward (below) their day's high (low) the next session.

Here is some other await at short-term momentum, drawing upon the Demand/Supply indicator mentioned inward my previous post.

Going dorsum to slow 2002, when I initiative of all began collecting those data, if 2 weather condition are met:

1) The virtually recent 24-hour interval has positive momentum (Demand exceeds Supply);

2) The virtually recent 24-hour interval has stronger momentum than the prior 24-hour interval (Today's Demand greater than yesterday's),

then nosotros merchandise higher upward the previous day's high inward SPY roughly 60% of the fourth dimension (vs 48% for all remaining days).

Adding a forcefulness filter such equally advance/decline forcefulness improves these odds further. Interestingly, nosotros don't run into an border on taking out yesterday's depression when downside momentum is strong.

More on this topic to come; eventually, I'll hold upward adding a Momentum System for swing trading to the Transition System. Signals from both systems volition appear on the weblog together with inward Twitter updates (decision back upward for discretionary traders.
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