Thread by @ProdigalTrader

Wesley Gray & Jack Vogel found a method by which measuring the momentum using 12 months of historical data giving list of stocks with enough room for further upside price action

The method as follows

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Monthly momentum values are calculated as cumulative returns over the past 12 months.

The monthly momentum is calculated in 3 steps

1) We calculate gross monthly returns by adding one to the percent monthly return.

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For example, from a monthly return of 5% (0.05), we get the gross monthly return value of 1.05 (0.05 + 1) while from a monthly return of -5% (-0.05) we get a gross monthly return of 0.95 (0.05 + 1.0).

2) We multiply all the gross monthly returns of past 12 months.

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3) We subtract one from the resultant value from step 2 to get the net 12-month momentum score.

credits: traderslounge site

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