Stockbee Momentum Burst Methodology
Purpose
This skill operationalizes a Stockbee-style short-term Momentum Burst review process. It is designed to find candidates for manual chart review, not to issue automatic buy signals.
Core Hypothesis
Some stocks produce short, sharp momentum bursts after a period of range contraction. The useful part of the move often occurs over the next several sessions rather than over a long trend-following window.
The script looks for three trigger families:
4% Breakout
- Close is at least 4% above the previous close
- Volume is higher than the previous day
- Volume exceeds the configured liquidity floor
Dollar Breakout
- Close minus open is at least the configured dollar threshold, default
$0.90 - Useful for higher-priced stocks where a dollar move can matter even if the percentage move is under 4%
- Close minus open is at least the configured dollar threshold, default
Range Expansion
- Current daily range is larger than each of the prior three daily ranges
- Prior day was not already extended
- Volume confirms the expansion
What Makes a Better Candidate
The screener scores the following qualities:
- Clean prior base or short consolidation
- Prior-day narrow range or down day
- Breakout volume expansion
- Close near the high of day
- Entry-day low close enough to define risk
- No recent 4% breakdown
- Not already up three days before the trigger
- Market regime allows new swing risk
What the Script Does Not Do
The script does not:
- Place orders
- Guarantee follow-through
- Replace manual chart review
- Verify news/catalysts
- Model intraday slippage or liquidity at the level-2/order-book level
- Decide final position size
Recommended Downstream Flow
stockbee-momentum-burst-screener
↓
technical-analyst
↓
position-sizer
↓
breakout-trade-planner optional
↓
trader-memory-coreThe strongest use case is a daily routine after the market closes or near the close, followed by a manual chart review and a pre-planned stop.