The Intra-Day Momentum Method Levels are designed to determine the daily intra-day market direction. The results shown here are presented to demonstrate the model. When applied to over 400 stocks in the S & P 500 from April 2015 through October 2020, we see the following results. The graph below shows the High and Low of the day in relation to The Intra-Day Momentum Levels for this period of time. It demonstrates that the market has a specific price range in which it is most likely to trade.
![](https://i0.wp.com/www.qatsystems.com/analytics/wp-content/uploads/2021/06/HDMM_High-Low.png?resize=640%2C470&ssl=1)
The IDMM Level extends in both directions from the Open. The MS1 and ML1 have demonstrated to be the High or Low of the day about 1% of the time.
Probabilistically Predicting High/Low of the Day
We can to some degree calculate where the expected High or Low of the day may occur. I will describe how we will probabilistically predict the High or Low of the day using all data collected. I will go further into detail on how we will optimize this using patterns and other forms of analysis.
Of all the data collected, 96% would not have needed an ML4 level to capture the High of the day. Of all data collected, 95% would not have needed an MS4 level to capture the Low of the day. Using this information, we can probabilistically predict that with 96% certainty that the High of the day will come below an ML4 Level. We can also predict that 95% of the time, the Low of the day will be above the MS4 Level.
We can also predict that 88% of the time, the High of the day will come below the ML3 Level. The Low of the day will be above the MS3 Level 86% of the time.
We can also determine that 63% of the time the High of the day will be below the ML2 Level. The Low of the day will be above the MS2 Level 61% of the time.
These calculations can be further improved by filtering for Non-Intra-day Reversal and other patterns. We will discuss these in upcoming articles.