Momentum companies' data aims to reflect the companies trading with positive momentum. The key technical indicators and price parameters used for this screen include Relative Strength Index (RSI), Simple Moving Averages (SMAs), Moving Average Convergence/ Divergence (MACD), Directional Movement Index (DMI), Volume and Beta.
The RSI indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status, while a reading of 30 or below suggests an oversold status. Similarly, SMA helps identify existing price trends. If the stock price trade above the 21-period SMA, then it suggests prices are currently in a bullish trend and vice–versa. MACD is a momentum oscillator used for indicating trends and not to recognise oversold or overbought status. MACD reflects two lines on the chart which swing without margins. If the two lines crossover, it indicates trading signals alike two-moving average system.
When all the above-mentioned technical parameters are combined, it helps reflect shares either in positive or negative momentum. This data screen of Sivastatz is a form of Positive Price Momentum Companies’ screener to identify potential opportunities in this space.
| Key Metrics |
Description |
| Relative Strength Index (RSI) Wilder Smoothing |
A momentum indicator that can gauge the company's price trend and its strength |
| Moving Average Convergence/ Divergence (MACD) Histogram |
Used to identify possible trend reversals and price swings |
| 20-Day Simple Moving Average (SMA) |
A trend-following indicator calculated by averaging 20 days close price data point |
| 50-Day Simple Moving Average (SMA) |
A trend-following indicator calculated by averaging 50 days close price data point |
| Directional Movement Index (DMI) |
A momentum indicator that help in the trend's direction and strength analysis |
| Volume |
It represents the number of shares that have been traded in a particular period |
| Beta |
It represents the company's volatility with respect to the overall market's volatility |
| Company Market Capitalization |
Companies with more than AUD 2000 million market capitalization are considered |
Frequently Asked Questions (FAQs)
Q. What is momentum trading?
Ans. Momentum trading involves taking advantage of upward or downward trends in a stock and taking position accordingly. It involves taking high-risk as stocks might be in good momentum technically but might have strong fundamentals.
Q. How are momentum stocks identified?
Ans. A stock is in momentum if the price differences for a fixed time interval as measured are moving in the same direction. For instance, developing a 20-day momentum line requires that the closing price of a stock 20 days ago is reduced from the last closing price. The value then can be shown near a zero line.
Q. Does this screen show companies’ data from a particular sector?
Ans. No, this screen includes companies from across the sectors and market capitalization.
Q. What do the Consensus Ratings and Consensus Mean Target Price of a company indicate?
Ans. The consensus mean target is deduced using statistical averages of broker estimates determined to be on the majority accounting basis and is provided by the licensed data provider. The price target is the projected price level forecasted by the respective analyst(s) within a specific time horizon.
The mean consensus rating is based on the data provided by the licensed data provider. The Consensus Rating is based on the Standard Scale of 1) Strong Buy, 2) Buy, 3) Hold, 4) Sell, and 5) Strong Sell.
Q. How many companies are shown on this screen?
Ans. This screen may include 10-20 companies, and the companies’ data screen is updated every week.
Disclaimer – The information, data and other resources available on this website and received from Kalkine Pty Ltd (“Kalkine”) such as e-mails or newsletters are provided for education and informational purposes only. It does not constitute or provide financial, investment or trading advice and should not be construed as an endorsement of any specific stock or financial strategy in any form or manner.
We strive to provide accurate and up-to-date information; however, the data contained in this website is not necessarily real-time nor accurate. Data as displayed is provided by one or more licensed sources. Kalkine does not make any representations or warranties regarding the quality, reliability, or accuracy of the information provided. You should not make any decision, financial, investments, trading or otherwise, based on any of the data presented on the website without undertaking independent due diligence and consultation with a professional broker or competent financial advisor.
Investing in the stock market involves risk, including the risk of losing your investment. Past performance is not indicative of future results. The use of the data provided on this website does not guarantee any specific outcomes or returns. This website may contain links to third-party content. We are not responsible for the content or accuracy of these external sources and do not endorse or verify the information provided by third parties. We are not liable for any decisions made or actions taken based on the information or data provided on this website. Users are responsible for their own investment decisions and should exercise caution and due diligence.