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How to trade the CredM Daily Momentum indicator

  1. This indicator is based on a Machine Learning model based on about 40 different “features” derived from daily price and volume for each of the stocks
  2. The chart updates every day at 4:30 PM IST
  3. The 50 stocks oscillate between oversold and overbought zones, so they trend in the middle and revert-to-the-mean at the extremes
  4. Stocks at the extreme left (“oversold”) are underpriced compared to the market, and poised to go up, especially if the market goes up
  5. Stocks at the extreme right (“overbought”) are overpriced compared to the market, and poised to go down, especially if the market goes down
  6.  Whether the market will go up or down is anybody’s guess, but the market breadth chart can provide some clue about the overall market direction of late
  7. Signals can repeat from one day to the next, if a stock remains in the oversold or overbought zone
  8. Typical holding period for a signal is 5-10 days, and expected price movements are about 3-7%, but this is influenced a lot by volatility and chance. 
  9. This information is best used to create biases about price movement while day-trading. Think of this as a daily RSI, but more accurate. Review 1-year charts below to study how the indicator has predicted price movements in the past. 
  10. This is not an investment advisory, a solicitation to buy or sell specific stocks, or a claim to predict the future prices in the market (because that’s impossible). This is simply a blind algorithm published in good faith. This goes for the twitter updates as well.

Historical (One Year) Charts for Each Stock