Why did we build the MomentumDetector?
High Momentum Stock Definition: A high momentum stock exhibits strong directional movement and maintains enough trading activity to sustain its trajectory. This sustained movement is powered by trading intensity, which we measure by the number of trades executed per second.
However, momentum strategies offer one way to navigate through market randomness: when a security experiences a strong move sustained by very high activity (momentum), it can create a directional bias in price movement.The U.S. stock market is particularly well-suited for momentum strategies. With thousands of securities trading simultaneously, extremely skewed environments frequently occur. These situations can result in stocks moving 10%, 20%, 50%, or even more in a single trading day. To capitalize on these high-momentum events, traders need reliable detection tools. This is where MomentumDetector comes in: a specialized stock scanner that continuously monitors every security in the U.S. stock market to identify these momentum events.