Short-Term Momentum Pullback Strategy

This scanner focuses on stocks that are showing strong momentum but are temporarily pulling back toward shorter-term moving averages. Because it uses very short moving averages such as the 10-day and 13-day averages, it often identifies hotter themes and faster moving stocks in the market. These stocks tend to move quickly and are commonly used in short-term swing trading strategies.

The strategy uses the following conditions:

• Bullish candlestick pattern
  The signal candle must be one of the following:
  • Bullish Hammer
  • Bullish Marubozu (Strong Buy)
  • Standard Bullish Candle
  These patterns indicate strong buying pressure during the session.
• Long-term trend confirmation
  The stock must be trading above its 200-day moving average. This ensures that the trade is aligned with the long-term market trend.
• Intermediate trend strength
  The 21-day moving average must be above the 50-day moving average, and the slope of the 50-day moving average must be rising. This confirms that the medium-term trend is upward.
• Short-term pullback entry
  The scanner looks for situations where price dips below a short-term moving average but quickly closes back above it:
  • Price falls below the 10-day moving average and closes back above it, or
  • Price falls below the 13-day moving average and closes back above it.
  This often signals that buyers stepped in during a short pullback.
• Momentum confirmation
  Momentum is measured using the Slow Stochastic oscillator (10, 7, 4). The slope of the %D line must be rising, indicating that momentum is turning upward.
• Recent pullback requirement
  The system requires at least one prior lower candle before the signal occurs. This confirms that a short consolidation or pullback happened before the bullish reversal.

Because this strategy focuses on shorter moving averages such as the 10-day and 13-day averages, it often highlights stocks that are currently attracting strong trading interest. These setups can represent early entries into stocks that are part of the market’s strongest or most active themes.