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50 Top Momentum Stocks -
three ways of calculating bullish momentum
1. Bullish Momentum = a big increase in Trend Score
This report lists the 50 stocks showing the most recent burst of bullish momentum based on daily data.
We define bullish momentum as a big INCREASE in Trend Score. Then we sort the list according to overall Trend Score from best to worst so you can quickly see the ones with the most promising charts.
Trend Score is our proprietary combination of technical factors reduced to a signal number that allows us to quickly identify stocks on the move. Factors include Moving Averages, Wilder's DMI (ADX), Aroon and MACD. We combine the scores for each of these indicators into a composite score that ranges from 0 to 6 that shows how strongly a stock is trending in a bullish direction.
2. Bullish Momentum = multiple moving averages heading upward
This report lists the 50 stocks showing sustained bullish momentum based on daily data. We define bullish momentum as the following:
- 20-day Moving Average > 50-day Moving Average > 200-day Moving Average
- Slope 20-day Moving Average > 0 and Slope of 50-day Moving Average > 0 and Slope of 200-day Moving Average > 0
- Latest Price > 20-day Moving Average
NOTE on MACD Confirmation, DMI Confirmation and Aroon Confirmation:
If either MACD Confirmation or DMI Confirmation or Aroon Confirmation is set to "No" then it means the upward trend may be weakening.
3. Bullish Momentum = highest Trend Score
This report lists the 50 stocks showing sustained bullish momentum based on daily data.
In this case we define bullish momentum as simply having the highest Trend Score (typically between 5 and 6 on our scale). Then we sort the list according to overall trend score from best to worst so you can quickly see the ones with the most promising charts.
Trend Score is our proprietary combination of technical factors reduced to a signal number that allows us to quickly identify stocks on the move. Factors include Moving Averages, Wilder's DMI (ADX), Aroon and MACD. We combine the scores for each of these indicators into a composite score that ranges from 0 to 6 that shows how strongly a stock is trending in a bullish direction.
Momentum Trading Strategy - how to use our data
Momentum Trading as an investing strategy is when traders look to profit from either buying or selling short securities when they are strongly trending - i.e., when price action momentum is high. High momentum is evidenced by price advancing or declining over a wide range in a relatively short period of time.
The stocks on this page have been evaluated using daily closing data. All have rising trend lines within the most recent four to eight weeks. As such, they are good candidates for a long-only momentum strategy. In other words, gains can be had if the trends continue. Some traders will look for the trends to extend through several weeks while others may opt to take a very short-term approach and day-trade the expected price moves. The trader will then exit the trade when the trend weakens.
To pick the best momentum trading candidate from the lists on this page you must do your due diligence. We have tools to help. Hover over the stock symbol and check the chart thumbnail and make sure it looks good to you. Look at the industry in which the company operates and make sure you are comfortable in that kind of investment. Click on the stock symbol to go our Stock Search page which provides more detail on both technical and fundamental data as well as an interactive chart. Determine if you are ready for an immediate investment or whether you would prefer a better set-up - i.e., a pullback that would provide a lower entry price. Determine an appropriate stop level. Have an exit scenario or target in mind and be sure to keep an eye on the charts so you can be ready to sell when your target has been reached.
