KK's Corner: Identifying Momentum Stocks
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Here is a simple strategy to identify momentum stocks for trading. Run this scanner every weekend or may be once in a fortnight and look for entry using your favorite entry method in your favorite charting method in 0.25% or 1% box / brick size.
Here is the simple approach:
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Build a P&F scanner that will identify stocks which are above x% above the Super Trend in 3% box size. I look for candidates which are 6% above Super Trend in 3% box size. You may choose any other % level. The second condition in the scanner would be last column is a column of X. This is to ensure that we are outperforming in 3%.
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Run the above scanner in P&F RS Scanner to identify a list of stocks that are strong outperformers. Save this list as a group.
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Go to P&F RS Matrix and run the scanner using the group saved in the previous step. Sort the list in the descending order of total RS Ranking score. And pick the top 10 or 15 stocks from the list.
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Save this top 10 or 15 stocks as a separate group. This is a list of stocks that are probably best among the best. Run your favorite entry scanner in this group either in 1-min time frame for intra-day to short-term swing trades or run the entry scanner in 0.5% or 1% P&F or Renko chart to identify entry.
Again, this strategy would work well when the market is bullish and the Mid small cap indices are outperforming Nifty 50.
Hope this helps
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Thank you sir
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Thank you Sir
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Thank You sir for explaining this in today's' webinar
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Very nice system KK sir, surely will be very help to identify the stocks
