Our platform helps you identify the best candidate stocks for momentum trades right after earnings.
We can begin by identifying the biggest historical movers during earnings.
These stocks are strong candidates for momentum plays, as typically large moves often carry momentum that extends to multiple days afterwards. Later, we'll delve deeper to further research the best post-earnings behaviour.
To find the biggest historical movers, we can start on the home screen.
Browse through the list and select the stocks with the highest standard deviation. A higher standard deviation indicates a wider range of price moves, which is beneficial for our strategy.
Notice how WOLF ZM, PANW, and AAP appear to be strong candidates.
Other important metric for our runners strategy is the stock's movement the day after the earnings, meaning the second day of trading after the release
We want stocks that, when they experience a significant move on the first trading day after earnings, are typically followed by another substantial move the next day.
This allows us to set alerts for these stocks on their earnings days and, if a big move occurs, ride the momentum into the following day based on this historical trend.
Duration of move is also important to watch. By duration, we mean how many consecutive days the stock continued in the same direction after earnings, either closing up or down for multiple days.