Lesson 22 of 26 · Trading Mastery · 1 min read
Momentum
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Putting RSI, EMA position, and detected patterns together into one composite read of the stock's own recent trading behavior.
Momentum, as InsiderWolf scores it, is a capstone — it combines everything else on this track (RSI, whether price sits above or below EMA20/50/200, and the count of bullish vs. bearish chart patterns detected) into a single composite reading. It's not about the business at all, unlike the Fundamentals track — it's purely about the stock's own recent trading behavior.
Markets can stay irrational, or simply slow to react to real information, for a long time; momentum tries to capture that directly, separately from what the underlying fundamentals say.
No single indicator is the answer. Momentum is what happens when you stop asking one at a time.
What feeds the Momentum score
1
RSI (14)
2
EMA20/50/200 Position
3
Bullish vs. Bearish Patterns
Combined into one Momentum score on every ticker's live Scorecard.
Key takeaways
- This is the most explicitly short-term-oriented signal on either track — it reflects recent trading action, not the underlying business's durability.
- A stock can score well on Momentum and poorly on every Fundamentals score at once, or the reverse — the two are measuring genuinely different things (see the Fundamentals track).