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.