ARE YOU LOOKING FOR AN EDGE?
The Intra-Day Momentum Method is not a Trading System, but a guide to help traders determine intra-day direction. The Intra-Day Momentum Method points out price levels that have been historically significant. The Levels are labeled ML 1 for Momentum Long Level Up and MS 1 for Momentum Short Level Down. Once ML 1 Level has been reached, a stock will have closed above the Open over 70% of the time and above the ML1 Level 49% of the time. Once the MS 1 Level has been reached, a stock will have closed below the Open over 70% of the time and below the MS1 Level 47%. Actionable, scalable, timely research delivered to your web-browser everyday.
DOES TREND FOLLOWING GIVE A TRADER AN EDGE?
Using The Intra-Day Momentum Method Model is expanded to three levels in each direction. Using the model to identify a trend, we calculate the probabilities of the next level being met. Our research suggests that if the high of the day is .01 higher than the ML1 Level, then the close of the day is at or above ML1 50% of the time, an increase of 1% over the 5 years studied. If the low of the day is less than the MS1 Level by .01, then the close of the day has been at or below the MS1 Level 48% of the time. This is an increase by 1% over the 5 years of data studied.
WOULD IT HELP YOU TO KNOW WHICH SIDE OF THE OPEN A STOCK WOULD LIKELY CLOSE ON?
The following stats are the results from applying the approach to approximately 460 stocks in the S&P 500 from the dates shown in the graphic below. These stats are updated weekly (for non-subscribers) and are available for the prior week by Sunday evening. To view individual days, click on the Historical Results Tab or on each day individually below under Historical Results.SP 500Current Stats 4-1-15 to 10-09-2020*(Fed Meetings / Announcement Dates may not always included due to volatility)102314Close >= ML 150 %167938Close >= Open81 %206598Total ML 1208621Total MS 1164694Close <= Open79 %98833Close <= MS147 %51740ML 1 Reversals25 %51740MS 1 Reversals25 %Total Reversals14 %These numbers are calculated EODSUBSCRIBE TODAY!!
THE INTRA-DAY MOMENTUM METHOD
3-19-15 TO 10-09-2020
ML 1 STATS
50%% Close >= ML 181%% Close >= Open25%% ML 1 Reversals
MS 1 STATS
47%% Close <= MS 179%% Close <= Open24.8%% MS 1 Reversals