It looks for relatively undervalued stocks but tries to avoid value traps by only selecting the companies with the highest stock price increase over the last 6 months. (valuesignals.com)
But as a way of avoiding value traps — stocks that are cheap for a reason — they also suggest using a momentum filter. (charlessizemore.com)
The momentum overlay seeks to avoid value traps by gaining exposure to value stocks that are displaying relative price strength. (indexologyblog.com)