Where should the line be drawn on momentum plays with regards towards dating the start. Should a catalyst push the price of a stock up on Monday, then the stock goes red for three days, then on Thursday the stock goes green again is that a momentum play? If three days is acceptable how about four days? Or five days? Or fifteen days? Or thirty days? Where do you draw the line? I ask this because I just read an article where a writer says that a stock went up on momentum after three days of going down in price. The writer is saying the price went up because it went up. So, how many days of red are acceptable before a momentum play is no longer a momentum play?
I don't have a specific answer to that question since I am not sure what the article says about what indicates momentum is present. I do think it is best to use a combination of 2 lower studies on the chart to indicate momentum. The main one I use is the MACD.and combine that with either RSI or Slow Stochastics. Then you watch them for triggers to positive and negative momentum
To me, this is like saying "The price went up today because it went up". https://finance.yahoo.com/news/why-gamestop-bed-bath-beyond-203000968.html?.tsrc=rss
