Plain and simple, if you believe in this (momentum trading) attitude of making money then you've got the game backwards and are probably still looking at the future in hopes of creating the right system and set of rules of how to correctly buy a stock on the way up with the use of charts as your guideline. LMFAO! This is the biggest illusion in the chart trader's gambling mind. Sure a rise in a stock looks great in hindsight and the momentum seems so obvious when looking back in time but that sure isn't the case when you've tried it. Don't believe me? Then please once again go right ahead and take as much time as you need and I can bet anyone any amount of dollars that as the mistakes pile up, one will continuously change and restructure their theory so that it can explain why they kept getting it wrong in the past and how to avoid making that same mistake in the future. Unknowingly to the aspiring mind of this person who wants to do this for a living so badly, this idea of learning from your mistakes (as so diligently advocated by these subscription based websites and guru teacher's who want you to trade for their prop shop firms so that they make a business out of your trading back and forth) will continue to dis-illusion the trader into believing he will eventually get it right because he is learning, and learning takes time and flexibility right? WRONG! And please let me explain why this strategy of chasing a stock based on price and volume (otherwise known as momentum) is not the result of buying stocks on the move but instead extreme discipline and calculated money management. That will also explain why gamblers seem to go some time successfully scalping .05 - .10, to .20 on stocks that are in play with high amounts of volume and price volatility when instead they could have had the same success trading stocks that trade in a natural $1 - $2 range. (It's also quite hilarious when looking at a trade sheet of one of these traders as they continuously make such small amounts of gains on these stocks that have notable interested buying and at the end of the day the stock ends up $5 dollars higher. One might ask why didn't you just hold the stock and why did you keep trading for .10 and .20? The traders will argue that there was no way to know it was going to be up $5 dollars on the day, and I say they're right since they don't understand why the stock is up at all because they are engulfed in the idea of chart trading which holds 0 relevance as to why stocks exist and trade in the first place.) Momentum is not the cause of a stocks move but instead its an affect , and an affect as we all know is the sum of all output and energy not the cause of it. Let me explain a situation so the illustration is clear.
Larger companies like AAPL and CMG, although high flying stocks by nature due to elements I won't talk about here, are excluded from this example because I want to make a point about stocks that have smaller market caps and can be moved inside of a decision made by one decent fund. But I won't use a stock example that trades under a $1,000,000 per day in dollar volume because of the wide spreads between the bids and offers that can make the stock seem tradeable to the naked eye but experience will show you that being able to step in front of large orders that are sometimes placed in a blink of an eye are not realistic.
Let's say company XYZ trades 3 million dollar shares a day. Hedge fund ABC gets a note from an insider or friend that company XYZ has good news and numbers coming out next week. Hedge fund ABC decides that they will invest $30 million dollars in company XYZ but they don't wish to do it all in one day since it might be difficult to maintain the attractive $5 dollars a share they wish to recieve. (Just remember that this example so far alone already debunks the idea that stocks move up based on momentum but instead some logical, or in some cases illogical factors based on hope, trust and deception) They also decide that if it takes longer than a week to acquire these shares then they risk rumors and other insiders getting the information and the price may get away from them as the super computer algorithms and the nosey ass quant strategies begin to take advantage of these alarming statistics when the fund begins its first day of operations.
P.S. Just about 2 years ago when you use to type in the words "stock charts" in google there were probably only a couple hundred thousand results. Now 23 million! We now have a society of less intelligent investors ignoring information and news and now more charts that will help them predict the future. LMFAO!