Finding Momentum Stock Query

#1
Trading momentum stock has an edge..they are yummy for quick in out kind of trades too..
but the main question is how to find them quickly?
I have seen few traders doing it and few other traders asking them-Bhai kaise karte ho?
But proper way never been disclosed..

If anyone of you would like to share how you hunt a momentum stock and ride on them then some of us can have a nice group here..
So we all can learn and earn together i.e, Sabka Saath Sabka Vikas

nice day ahead
 

TradeOptions

Well-Known Member
#2
Trading momentum stock has an edge..they are yummy for quick in out kind of trades too..
but the main question is how to find them quickly?
I have seen few traders doing it and few other traders asking them-Bhai kaise karte ho?
But proper way never been disclosed..

If anyone of you would like to share how you hunt a momentum stock and ride on them then some of us can have a nice group here..
So we all can learn and earn together i.e, Sabka Saath Sabka Vikas

nice day ahead
Hi eklavyam, there are many methods / techniques that could be used for finding out such momentum stocks. One of the ways could be to use - Relative Volume Indicator.
https://www.smbtraining.com/blog/relative-volume-rvol-defined-and-how-we-use-it
Relative Volume. This compares current volume to normal volume for the same time of day, and it’s displayed as a ratio. So for example, a stock trading 5 1/2 times its normal volume would have a Relative Volume display of 5.5.

Now how do we use relative volume? We use relative volume to gauge how In Play a stock is. When I am considering trading a stock I glance at relative volume, RV on my Level 2 as the screen grab shares below.

If RVOL is less than 1 it is not In Play on this trading day and I may decide not to trade it. If RVOL is above 2 it is In Play and this is more evidence I ought to be in the name. When stocks are *very* In Play you can see an RVOL of 5 and above. The higher the RVOL the more In Play the stock is.


I also use RVOL for position sizing. If RVOL is <1 I may decide not to take a *very* large position in the name. If RVOL is >3 this may give me more confidence to take a larger position as more reward and more liquidity should be present.
 

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