#AVCT — Understanding Momentum
Momentum isn’t simply about whether a stock is going up or down. It’s also about whether that momentum is improving or deteriorating.
AVCT currently has a Trend Intensity reading of -0.87%, meaning the 7 SMA remains slightly below the 65 SMA. Technically, it hasn’t entered my positive momentum regime yet.
But here’s what interests me:
5 days ago: -2.24%
Today: -0.87%
5D Intensity Change: +1.37
The gap between the 7 and 65 SMA is closing. Momentum is still negative, but it is accelerating in the right direction.
Think of it this way:
Intensity tells me where momentum is now.
Intensity Change tells me where momentum may be heading.
Combine that acceleration with an 7/65 bullish crossover, and we potentially have the early emergence of a new trend.
The Viking intends to buy on Monday. Will post his buy order. Now, how many tell you what they intend to do before they’ve bought?