Guide
The Momentum Scanner ranks your watchlist stocks by a composite momentum score (0-100) that combines four key momentum indicators: RSI-14, ROC-5, Stochastic %K, and MACD histogram. Higher scores indicate stronger bullish momentum, lower scores indicate bearish momentum.
Range: 0 (extreme bearish momentum) to 100 (extreme bullish momentum)
The momentum score is calculated by averaging four normalized momentum indicators. Each indicator contributes equally to the final score. This approach reduces noise from any single indicator and provides a more balanced view of momentum strength.
The momentum score combines four technical indicators:
| Indicator | What it measures | Contribution to score |
|---|---|---|
| RSI-14 | Relative Strength Index over 14 periods. Measures overbought/oversold conditions. | Direct: 0 (oversold) to 100 (overbought) |
| ROC-5 | Rate of Change over 5 days. Measures percentage price change. | Normalized: Large gains push score higher, large losses push lower |
| Stochastic %K | Measures where price is relative to recent high-low range. | Direct: 0 (at lows) to 100 (at highs) |
| MACD Histogram | Difference between MACD and signal line. Measures momentum acceleration. | Normalized: Positive histogram raises score, negative lowers it |
All four indicators are normalized to a 0-100 scale and averaged. If an indicator is missing for a stock, the score uses only available indicators.
Scores are grouped into five categories for quick interpretation:
| Category | Score range | Typical interpretation |
|---|---|---|
| Strong Bullish | 70-100 | Multiple momentum indicators showing strong upward pressure. Often seen in strong uptrends or breakouts. |
| Bullish | 55-69 | Above-average momentum, positive but not extreme. Healthy upward bias. |
| Neutral | 45-54 | Balanced momentum, no clear directional edge. Consolidation or indecision. |
| Bearish | 30-44 | Below-average momentum, negative bias. Downtrend or pullback in progress. |
| Strong Bearish | 0-29 | Multiple indicators showing strong downward pressure. Often seen in steep declines or breakdowns. |
Finding strong momentum leaders
Look at top-ranked stocks (scores 70+). These show broad momentum strength across multiple indicators, useful for momentum trading or confirming breakouts.
Identifying weakness
Bottom-ranked stocks (scores below 30) show broad momentum weakness. Consider for short positions, exit signals, or avoiding new longs.
Divergence analysis
Compare momentum score to price action. Strong price gains with declining momentum (lower scores over time) can signal exhaustion. Rising momentum with flat price can signal coiling for breakout.
Rotation tracking
Watch which stocks are moving up/down the rankings over time. Momentum leaders rotating lower can signal sector rotation or market regime change.
Access the Momentum Scanner from the Analysis page under the Momentum tab.