Cypress Point

     Cypress Point Technologies, LLC
            Home of HedgeTools ®


Momentum Tab

Selecting the Momentum tab will bring up a page that looks similar to the one shown below:

Momentum Tab

Momentum Chart

The purpose of the Momentum chart is to augment the Equivolume chart. The intent of this chart is to show short term momentum swings in each stock. Momentum changes are denoted by red arrows on the momentum model (shown as a Dark Cyan line). Momentum changes are close to Buy/Cover and Sell/Short indicators.

The strategy is to trade the momentum changes. Arrows at the top of a trend are Sell and Short trades. The trend is monitored until the trend again reverses. This is indicated by a red up arrow on the model curve. A Cover and Buy order is then executed near this trend reversal.

The Momentum chart shown above contains 480 dot summaries, with 4 dot summaries per day. Therefore, the above chart contains 120 days of data. Today’s dot summaries can be seen in the Trade chart (lower right). Four samples are taken each day. Each sample is contained in a colored rectangle. The computer color name for each rectangle is Dark Cyan. Because the open is very noisy, the first dot summary is taken 10 trades into the trading day. The second and third samples are 1/3 and 2/3 into the trading day. The last sample is at the close.

A proprietary model is shown on the Momentum chart as a dark cyan line through the dot summaries. Also shown are two red and green bands. These bands are centered on today’s last price. The height of each band is a 5% net profit. Shown in the chart above is a short-sale potential. The red band is above the last price to show a loss of 5%, and likewise, the green band shows how far the stock would have to fall for a 5% net profit. Although it may not be immediately obvious from looking at the Momentum chart above, the vertical scale is logarithmic. This means that a percentage distance is constant in the vertical dimension. The profit/loss color bands are shown to give a quick visual indication of the potential short term profit/loss relative to today’s last price.

Control Buttons Panel – Scan tab

Below the Momentum chart is another tabbed panel. The Scan tab is shown below.

Momentum Scan Tab

You can manually bring up a chart by entering a ticker symbol into the Symbol box and clicking the Display button. When this page first appears, the first symbol in the database is entered into the Symbol box. You can also reset back to the first stock in the database by clicking on the First button (fourth row down).

Let’s skip down to the fourth row of buttons. The Next New button starts a scan through the database for all stocks that have a momentum change (trend reversal) within 12 Dots. The number “12” comes from the entry:

Within Dots

on the second row down. For example, if you change this number to “4” you will obtain trend reversals in one of the four dot summaries today.

During a scan, the text on the Next New button changes to Cancel. At any time you can abort the scan by hitting this button.

After a stock is found and displayed, the Next New button changes to Next. You can continue the scan by clicking on this button. The Previous and Next buttons step forward and backward though the stocks in the database. If you have the time and patience, you can manually step though each stock in the database using these two buttons.

The bottom panel is used to fine tune the model, and is used only by administrators.

Momentum Panel – Buttons tab

The Buttons tab is similar to the one shown on the Equivolume chart. It is used to display the Momentum chart for stocks in the BigBox, Watch and Portfolio buttons, as well as stocks by industrial groups.