When traders talk about “momentum,” they’re usually referring to the stocks and exchange-traded funds (ETFs) that are leading the market — those with high relative strength, powerful breakouts, and technical trends supported by volume. But how do you actually find them before the rest of the crowd piles in?
In a recent live webinar, John Rowland, CMT, sat down with Jim Van Meerten, author of Barchart’s Chart of the Day newsletter, to break down Jim’s proven process for screening high-momentum candidates.
Momentum isn’t just a buzzword. By focusing on stocks and ETFs already showing strength, traders can tilt the odds toward catching the next leg higher, rather than chasing a runaway trend.
In the clip, Jim explains how he funnels a large universe of stocks down to the best of the best:
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Start with momentum watchlists: Top Stocks to Buy, Top Stocks to Own, and new highs lists on Barchart.
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Filter with Weighted Alpha: Jim looks for higher Weighted Alpha (a measure of long-term price appreciation).
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Apply Barchart Opinion: Screen for stocks with Barchart Opinion ≥ 99%, which confirms strength across 20-, 50-, 100-, and 200-day moving averages.
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Add Strength & Direction: Tighten further by requiring top-percentile scores in signal strength and trend direction.
The result? From the entire S&P 500 Index ($SPX), only about 27 stocks made the cut at the time of the webinar. That’s the power of momentum screening — taking hundreds of candidates and narrowing it down to a handful of actionable setups.
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Stock Screener: Apply filters for Weighted Alpha, Barchart Opinion, and Strength/Direction.
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ETF Screener: Find sector and thematic ETFs leading in momentum (AI, Energy, Financials, etc.).
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Flipcharts & Chart Templates: Rapidly scan charts of screener results to confirm technical setups.
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New Recommendations: Catch fresh buy signals aligned with momentum indicators for both stocks and ETFs.
Momentum trading is about clarity and consistency — using data-driven tools to filter out noise and focus on the stocks and ETFs most likely to keep moving.