Momentum is a simple well-known trading strategy that buys stocks with the best returns over the past three to 12 months and sells stocks with the worst returns over the same horizon. Many tweaks to the basic momentum strategy have been published in academic papers.
Momentum combined with a volatility effect is one such useful trick as research shows that momentum returns could be enhanced by using the most volatile stocks. An additional advantage of this approach is that it works very well within large-cap stocks (it is well-known that momentum works better in a small-cap universe; therefore, any trick which works within large caps is helpful).
There is no change in the trend this is a contrary pick. If the stock has fallen the last few weeks and even faster last few days. There is a high probability of reversal.
The stock is near the weekly demand zone. This creates another opportunity for a pullback.