Importance of a High of Day (HOD) Scanner
A lot of confusion surrounds the value of a HOD Scanner such as the one found in MOMO Pro. Our Stream functionality is built around serving up a live stream of new highs of the day (HOD) and new lows of the day (LOD).
There are numerous benefits of this view and it is easy to casually disregard the richer value that lies behind the generally simple concept.
For those that don't know - a HOD Scanner shows stocks which are only reaching a new intraday highs of the day. The opposite for a LOD Scanner. This means if a stocks last trades prints - 100, 101, 101.5, 101.25, and 102. You would see the stock reaching all the new higher high entries and ignore the one entry not making a higher high (101.25).
The richness here is that you can quickly see those stocks making meaningful moves and disregard those which are not. Obviously if all prints were shown, the stream would be a impossible to consume due to the 100's of thousands of trades a minute which are made.
The other element is that these highs and lows of the day critical daily milestones for each stock. Why? Well these are points in which are most observered by individuals making a buy/sell decision. That is, do I finally jump in and buy before the stock goes even higher, do I take my profits, or do I cut my losses. The human element is significant here as regardless of their intent, the movement is emotionally triggering as they have likely already digested the prior days movements and have made a "non-decision" or are comfortable letting the stock rise or fall to the current day.
Technically, the reaching a new higher high or lower low is also in a period of "price discovery" meaning that the prior hours of support and resistance for day are no longer in play. This break beyond of the prior trading "baggage" is also a point where increasing momentum and corresponding gains and losses can be realized - this is why we love higher highs and lower lows and have built MOMO around it.
Within MOMO Pro we have enhanced the view with other supporting indicators to help you take quicker action on the stock (filters for industry, price, volume, count) as well as 52 week high indicators (solid green or red background). Additionally, we have news, socially trending, and favorite indicators.
If desired, you may even upload your own set of symbols to just get breakouts from that custom list of symbols uploaded as a CSV or manually entered.
Sign up or learn more about MOMO Pro at Mometic.com
//Profit from Momentum