StocksMonkey Momentum Rank (SMMR)

Stock momentum is an important concept because it reflects the strength and consistency of price movements, helping traders spot whether buyers or sellers are in control.

One practical way to measure this is by looking at the percentage of up candles versus down candles across different timescales.

An “up candle” occurs when a stock closes higher than it opened, while a “down candle” shows the opposite.

By comparing how many up candles occur relative to down candles over short and medium periods, we can gauge whether momentum is building or weakening.

A higher proportion of up candles suggests persistent buying pressure, while more down candles may point to selling dominance.

This simple measure provides a clear, visual way to assess momentum and can be combined with other tools to confirm trends and refine entry or exit decisions.

The StocksMonkey Momentum Rank (SMMR) uses a weighted average of several short and medium term percentage values for up/down candles to help identify stocks that have stronger momentum. We calculate a total weighted value for each stock and then compare each stocks value to create an easily usable rank between 0-99.

• Values of 80 and more generally demonstrate stronger upward momentum stocks.
• Values of 20 and less generally demonstrate stronger downward momentum stocks.

Of course this is just one of the tools that you would use to help create a narrowed list of stocks for your further analysis.