Momentum trading is based on the theory that stocks that are up on the day, will continue its upwards motion. For intraday trades, the cause of the momentum is not important. Sometimes news can create momentum. Postive news that are likely to move the stock include but are not limited to a company winning revenue-generating contracts, positive results on a drug trial, or relief of debt. Other times, strong buying of a stock not based off of any public news can also create momentum.

With thousands of tickers across the market, timing is of utmost importance in finding stocks that are moving. Being even a second late can cause traders to miss important opportunities at best, and take losses at worst. Having a market scanner is a key part to succeeding as a momentum trader.

Included as a bonus:

Stocktwits activity scanner. Recommended as an add-on for the core momentum scanner. This strategy utilizes the amount of chatter to evaluate where the audience may be for stocks under $20. 

Often times the herd follows the price but if the timing is right, the price can follow the herd. Our finely tuned scanner settings allows us to look for increased Stocktwits activity and either get in before the "meat of the move" or assess if the stock is likely to continue upwards.

At Enhanced Investor, we have spent thousands of hours, refining our scanner and we are proud to present our momentum scanner settings so that we can share with you a piece of our success.