Momentum

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Momentum

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This screen looks for coins with momentum, regardless of trend direction.  

  1. Confirmation of a trend. If the momentum signals are bullish and the general uptrend is Up, then this can serve as a confirmation.
  2. Reversal indication. If the momentum signals are bullish but the general trend has been Down, then this could signal a trend reversal (from Down to Up in this case).  Vice versa, if the coin has been in an UpTrend, but momentum signals turn bearish, this could indicate a correction / pullback or a trend reversal.

Momentum is captured using MACD and RSI indicators, although one could add others like CCI (cross above -100 is bullish and cross below +100 is bearish).

Screen definition (bullish):

  1. Bullish MACD crossover (MACD is above MACD Signal Line)
  2. Bullish RSI crossover (RSI is above 50)
  3. Volume ($) is above 200,000 (need decent liquidity)

Additionally, a trader could visually examine OBV (On Balance Volume) indicator to see if it’s rising and at or near it’s highs.  This would indicate that “up” days have greater volume than “down” days, which is bullish.