price momentum learn from Stephen Stewart

http://stockcharts.com/public/1130973/tenpp/1

http://educsos.blogspot.com/2015/08/stewart-notes_2.html

It is called Map Syntax (MAPS), which had VIOLENT price action and optimizing it. If turned where, the momentum can last at least a few weeks. So one can be patient to hold the stock and swing trade it. Set stop at the low or middle of the breakout bar. For example.

Just Follow these 3 Rules:

1. Only Invest Above the Green Line. (250 day avg.)
2. Only Invest Above 90 Relative Strength Factor (Top 10% of All Investments).
3. The Money Wave should be < 20 and turning up (Buy in Green Zone, Sell in Red Zone).

Buy when they are coming out of the Green Zone, and take profits in the Red Zone.

It is based on weekly price momentum using weekly RSI. Besides looks for weekly RSI over 70, (which I used 65), I also require criteria: weekly volume change is at least 50% more than the moving average of 26 prior weeks. I implemented this in TD and found a lot of good examples.

Most of time, the first time a stock reach such criteria, the upside momentum is more powerful. Muathe called this first mountain setup.

 For example,

ACHN back to year 2014.

Certainly there are failures, for example PZE. It appeared a good long term breakout with volume and RSI muscle, however it failed and dived hard. So the money management is key for this strategy.

I implemented this.

for week of 2016-12-12, below is the list. We can see the performance. Most of this stocks continued trending up.

http://finviz.com/screener.ashx?v=211&f=cap_smallover,sh_avgvol_o50,sh_price_o5&t=AAN,ACAS,ACTA,ADTN,AEGN,AF,AIMC,AIT,AKAO,AKS,ALIOY,AMAG,AMBC,AMCC,ARCB,ARW,ASB,ATW,AXAS,AXS,AZPN,BAC,BAH,BANR,BCPC,BEL,BFCF,BGC,BHE,BHLB,BIO,BLK,BNCN,BNED,BPFH,BPOP,BRK/B,BRKL,BRKS,BXS,CACI,CBS,CBSH,CBU,CCMP,CDEV,CECO,CENTA,CFFN,CHE,CLC,CLH,CNOB,COHR,COLB,CPF,CPLA,CSFL,CTAS,CTS,CUBI,CVBF,DCOM,DIOD,DV,EFSC,EFT,EIG,EMKR,EOG,ERF,ESE,ESNT,ESSI,EXTN,EXTR,FBNC,FBP,FCB,FCF,FFBC,FFIN,FIBK,FMBI,FMCC,FNB,FNGN,FNMA,FRA,FRBK,FRC,FRME,FRP,FSB,FSIC,FULT,GATX,GBCI,GBNK,GEF,GFF,GLAD,GMS,GPRE,GS,GTY,H,HBHC,HEOP,HFWA,HI,HII,HLI,HLT,HMST,HOMB,HOV,HTH,HTLF,HUBB,HW,IBKC,IBOC,IBTX,ICFI,IDCC,IIVI,IL,INDB,INN,INVN,IOSP,IPHS,IPI,IRBT,IRDM,ITRI,JBHT,JBLU,JFR,JRO,KAMN,KBAL,KE,KEM,KFY,KLIC,KLXI,KNX,KOP,KRO,LBAI,LION,LIOX,LRN,LSTR,LTXB,LUKOY,MATW,MBFI,MC,MDU,MEI,MENT,MGI,MGLN,MHLD,MHO,MLI,MOD,MSA,MTB,MTL,MTRN,MTRX,MYRG,NANO,NBHC,NBTB,NCI,NDSN,NFBK,NMIH,NRE,NSIT,NSL,NSR,NTRS,NVDA,NWBI,OCFC,OGZPY,OKS,ONB,ORBK,ORN,OTTR,PB,PBCT,PEIX,PERY,PES,PFS,PGR,PIP,PIR,PJC,PLXS,PNFP,PPBI,PPR,PRA,PTEN,QUIK,RE,RGA,RMAX,ROLL,ROST,RP,RTEC,SAIA,SAIC,SBSI,SCHL,SFBS,SFNC,SIVB,SJI,SKYW,SLM,SNC,SPR,SPTN,STBA,STBZ,STI,STL,SWM,SXC,TCB,TCBI,TDY,TEX,TLRD,TLYS,TMST,TOWN,TRMK,TRS,TRST,TSC,TTEK,TWI,UAM,UBNK,UBSH,UCBI,UMBF,UMH,UNM,UNVR,USM,UVSP,UVV,VAC,VASC,VECO,VTA,VVI,WABC,WAFD,WCIC,WGO,WRK,WSBC,WTFC,WTI,WWD,XHR,XLNX,XXIA&ta=0&o=-change&r=241

For week of 2016-12-05

http://finviz.com/screener.ashx?v=211&t=ABM,ACTA,ADSK,AEIS,AF,AGCO,AGII,AGO,AGX,AI,AIMC,AIN,AKS,ALIOY,AMBC,AMCC,AMD,APO,ARCB,ATKR,ATW,AXAS,AXE,BAC,BAH,BANR,BFCF,BGFV,BHLB,BIF,BOBE,BRKL,BTO,BWA,BZH,CBF,CBOE,CDEV,CECO,CFFN,CGNX,CHH,CKEC,CLC,CLF,CM,CNOB,COLB,CSFL,CTS,CUBI,CVI,DCI,DCOM,DFRG,DIS,DK,DV,EMKR,ENVA,EOG,ERI,ESSI,EXPD,FAST,FBNC,FBP,FCAU,FCB,FET,FF,FFIN,FIBK,FLO,FMBI,FMCC,FMSA,FNMA,FNSR,FRA,FRAN,FRBK,FRP,GATX,GEF,GFF,GMS,GS,GV,H,HEES,HI,HIIQ,HLT,HMST,HOV,HUBB,HW,HXL,IBKC,IBOC,IBTX,IIVI,IL,INDB,ING,INN,INVN,IOSP,IPI,ISCA,JEC,JFR,JRO,KBAL,KE,KEM,KKR,KLIC,KLXI,KMTUY,LBAI,LRN,LZB,MCFT,MEI,MGI,MGM,MHO,MITT,MOD,MRTN,MSGN,MT,MTSI,NAK,NBHC,NILE,NMIH,NTRS,NVCN,NXST,OCFC,ODP,OFG,ORIG,ORIT,ORN,PBCT,PCAR,PDS,PERY,PES,PFS,PFSI,PIP,PJT,PLAY,PRA,PVTB,PZZA,RHP,RRTS,RVT,S,SAIC,SBCF,SBSI,SCGLY,SCHL,SCMP,SFBS,SFNC,SLM,SMG,SNC,STAR,STAY,STBZ,SWC,TCB,TCS,TER,TICC,TIME,TLRD,TLYS,TRNO,TRST,TSC,TSEM,TTC,UCBI,UMBF,UNVR,UVSP,VASC,VLY,VVR,WAC,WLB,WSBC,XLNX,XXIA,YRCW&ta=0&o=-change