Ride the trend with stocks showing strong price action and volume
Momentum trading is based on a simple premise: stocks that are going up tend to keep going up, and stocks that are going down tend to keep going down. Rather than fight the trend or search for reversals, momentum traders ride the wave while it's moving in their direction.
This strategy works because market psychology creates trends. When a stock breaks out to new highs on strong volume, it attracts attention from investors, analysts, and algorithms. This buying pressure fuels further gains, creating a self-reinforcing cycle — at least for a while.
Momentum trading requires discipline and active monitoring. You need to know when to enter a trend, when to ride it, and when to exit before it reverses. It's more hands-on than buy-and-hold strategies, but it can capture significant gains during strong bull markets or sector rotations.
Momentum trading requires regular monitoring and quick decision-making. Trends can reverse suddenly, especially during market volatility or news events.
Not suitable for passive investors or those who can't check positions frequently. Set stop-losses and stick to your exit plan.
Don't fight market direction. If the stock is rising on strong volume, assume it will continue until proven otherwise. Trade with the trend, not against it.
Strong moves should be accompanied by high trading volume. Volume validates the trend. Low-volume rallies are suspect and often reverse.
Look for stocks outperforming their peers and the broader market. Strong relative strength indicates leadership, which tends to persist.
Know your exit strategy before entering. Use stop-losses to protect gains. When momentum fades, exit quickly — don't hope for a rebound.
Recent price appreciation relative to starting point
Measures momentum on a scale of 0-100
Average volume compared to historical levels
How close the stock is to its 52-week high
Price relative to 50-day and 200-day moving averages
Our momentum scoring system identifies stocks with strong, sustained price trends. High scores mean:
AI chip maker on strong growth trajectory
6-Month Gain
+48%
RSI
62
Volume Trend
+35%
52W High
98%
Strong breakout on earnings beat, sustained buying pressure, institutional accumulation
Biotech with FDA approval momentum
6-Month Gain
+62%
RSI
68
Volume Trend
+52%
52W High
100%
New drug approval catalyst, sector rotation into healthcare, strong chart pattern
Oil producer benefiting from commodity rally
6-Month Gain
+34%
RSI
58
Volume Trend
+28%
52W High
94%
Rising oil prices, sector leadership, consistent weekly gains
Protect capital with 7-10% stop-losses. Never let a winner turn into a big loser.
If a stock has already doubled in 2 months, you're late. Wait for the next setup.
Build positions gradually and take partial profits along the way.
Focus on stocks showing the strongest momentum in the strongest sectors.
Momentum works best in trending markets. Reduce exposure in choppy, sideways conditions.
See today's highest-scoring momentum stocks with strong trends and volume confirmation.
View Today's Momentum Stocks