Stars studies price, volume and market structure. Start with a valid base, check whether the breakout closed convincingly above resistance, then compare relative strength and trend health. Review extension in both percent and ATR units before treating a strong pattern as an attractive entry.
Weights are heuristics, not a calibrated probability of 2× or 10× returns. Historical testing has not established that higher grades consistently outperform lower grades. Volume indicates activity, not the identity of buyers. A high score can coexist with entry risk.
Goyal, Jegadeesh & Subrahmanyam · 2025
Empirical determinants of momentumInternational evidence links momentum to gradual information arrival and finds stronger momentum in rising, less volatile markets. This supports examining trend context, not a guaranteed breakout rule.
George & Hwang · 2004
The 52-Week High and Momentum InvestingStudies proximity to the 52-week high as a momentum signal. Near-high strength and distance from a sensible entry are different questions.
Daniel & Moskowitz · 2016
Momentum CrashesMomentum strategies can suffer sharp reversals. Our extension and failed-pivot diagnostics make technical risk visible; they do not replicate the paper's crash model.
Consolidation filter: contracting rangeVolume surge: ≥ 3× 20-day averageMulti-month breakout above pivotMA alignment: 20E > 50S > 200SRSI regime: 40–50 stay → 60 cross