Selecting the DayMomentum tab will bring up a page that looks similar to the one shown below:
The Day Momentum application is used to scan the database for stocks that meet a "buy" criteria early in the morning. The panel at the lower left allows the user to input parameters that affect the model. The "Scan" and "Cancel" buttons are used to start and stop the scan. When the Day Momentum application finds a stock that meets the model criteria, the scan is paused and charts appear.
The DayMomentum application consists of four charts. The chart at the top left is a day chart of the NASDQ. Each dot on this chart is a 10-second summary. The smooth cyan line is a model of the price. The chart at the top right is the Momentum chart that we discussed in the previous section. There are two charts at the bottom. On the bottom left you will see yesterday’s day chart. On the bottom right is what’s happening now. Of particular interest are the green LED lights below the company name. This is the output of our day-trading model. The model is evaluated six times during the morning: 16, 21, 31, 41, 52 and 61 minutes into the trading day. A gray LED says that the model did not return a vote. A green LED says that the model recognized a trending pattern and the trend went on to meet the goal of 2.5% profit. A red LED means that a trending pattern was recognized; but the trend has not yet reached a goal. Notice a red horizontal line at 61 minutes into the trading day. This indicates how long the trade was in the portfolio before the 2.5% goal was met.
The panel on the lower left shows some parameters that control the database scanning process. The checkbox labeled "Envelopes" means that only stocks that trade above the smooth green line are considered. If the Purge checkbox is selected, the scanning process will be pruned to only those stocks that have a model vote (green or red LED). The Init checkbox re-initializes the list of stocks to be scanned. The checkbox will show stocks that meet the model criteria without stopping. The "Vol Inc." box lets you select how much of an increase (in percent) the volume today's is over yesterday's volume. The "Min Vol" lets you filter out stocks that do not yet have this much volume. The "ES" box lets you select the minimum slope of the price trend curve (smooth orange line). During the trading day, this line is extrapolated 15 minutes into the future, and you can select its slope. The "Min Mom." box lets you select the minimum momentum (our custom momentum model). And finally, the "Min. Big. Box" box lets you select a minimum on the Big Box Ratio calculation.
Click on the Scan button to begin the database scanning process. At any time, you can hit the Cancel button to stop scanning. You can then adjust the scanning parameters and begin a new scan.
You probably have a lot of questions about this application. The Users Manual will answer some of them. Contact us for further questions.