"How many of you apply momentum rules to your fundamental...

"How many of you apply momentum rules to your fundamental analysis. Please also don't make this a TA v FA thing either, it's a strategy thing."

Momentum Trades, I scan for US Small Cap Stocks (MC 300m to 2bn) stocks generally in the $5 to $50 range.

Looking for companies which show increase x2 above average volume, additional TA and MA, will then place a very small first bid, if that shows profit and SP moves in direction as anticipated I'll average up. Once target price has been met, I'll close the trade or if it's looking strong attach a trailing stop loss.

Ideally what I look for is stocks which have yet to be picked up by the major hedge funds. As they collect more stock volume increases and I follow the momentum.

Tesla last year was perfect example of a momentum trade.

As per chart you can see increase in volume April 2013 as hedge funds started buying and that momentum has continued.

Kat.