CompanyGraph
Momentum alignment means several historical indicators point in the same direction now. It does not mean the next return is known.
What is momentum alignment?
Momentum alignment is the coexistence of trend, directional, and sometimes volume conditions calculated from past weekly prices. Agreement can reduce dependence on one indicator, but the inputs often share the same price history and are not independent evidence.
How does the moving-average trend screen work?
The Fast SMA Above Slow SMA With Trend and Volume interpretation requires its configured weekly moving-average, trend, and volume observations to fire together. A match describes the present configuration. Moving averages lag the prices used to calculate them, and volume does not identify who traded.
Fast SMA Above Slow SMA With Trend And Volume
Fast SMA above slow SMA, trend strength elevated, and volume above baseline
How does the directional uptrend screen work?
The Trend Directional Alignment interpretation requires a recent high to be more recent than a recent low under a 25-week Aroon calculation, elevated 14-period ADX directional-movement asymmetry, and positive directional movement above negative directional movement.
This panel is specifically configured for upward alignment. A match does not predict duration or magnitude, and the Aroon and directional-movement observations use different windows.
Aroon Up-Spread With Elevated ADX Asymmetry And +DI Above -DI
Aroon spread is on the upper side (recent high more recent than recent low), ADX asymmetry is elevated, and +DI exceeds -DI
Why were two momentum panels removed?
The broader Trend Alignment panel includes direction-agnostic ADX with volume-price indicators, so its positive direction rests on overlapping volume inputs rather than ADX itself. Capital Flow Momentum uses public price and volume indicators; it does not observe institutional fund flows or identify buyers. Those bindings were removed to avoid stronger claims than their formulas support.
How should you combine momentum filters?
Use the directional panel when explicit upward direction matters. Add the moving-average panel only when requiring another lagging confirmation is part of the rule. CompanyGraph uses AND logic, so combining panels narrows the current evaluated universe. Zero results apply to the current weekly snapshot and available data only.
What can create a false momentum signal?
Gaps, earnings events, thin trading, splits, stale prices, short covering, index rebalancing, and one high-volume week can affect indicators. Closely related inputs can make agreement look more independent than it is. A strong configuration can also be late in a move and reverse immediately.
What should you check before using a momentum screen?
Inspect data quality, liquidity, spreads, event dates, and the underlying price series. Define entry, invalidation, position size, and horizon separately. Investor.gov's market overview provides context on markets and intermediaries; indicators do not reveal participant motives.
What can momentum alignment not tell you?
The panels do not measure intrinsic value, business quality, future news, order-book liquidity, ownership intent, or expected return. They identify current weekly configurations. Use CompanyGraph for reproducible screening, not as a claim that a trend must continue.