Daily Momentum stocks

Screening Filters

1. market_cap >= 2,000,000,000

   • Purpose: Focus on stocks with sufficient size and liquidity.
   • Rationale: For a daily momentum screen, larger companies are often more tradable and less prone to extreme, unreliable price spikes caused by very low float or thin trading. This helps keep the list more practical for short-term momentum trading.

2. relative_vol >= 2.5

   • Purpose: Identify stocks trading with unusually high volume versus their normal level.
   • Rationale: Momentum stocks typically need strong participation from buyers and sellers. A relative volume of 2.5 or higher suggests the stock is attracting attention today, which is a key ingredient for a meaningful daily move.

3. MACD = bullish

   • Purpose: Confirm positive short-term trend momentum.
   • Rationale: A bullish MACD signal supports the idea that the stock’s price trend is strengthening. This is useful for finding stocks that are not just active, but actively trending upward.

4. RSI category = moderate

   • Purpose: Avoid stocks that are too overbought or too weak.
   • Rationale: A moderate RSI suggests the stock has momentum without being extremely stretched. That can help screen for names that may still have room to continue moving, rather than ones already overextended.

5. Price above MA5, MA20, and MA60

   • Purpose: Confirm the stock is trading above key short-, medium-, and longer-term trend levels.
   • Rationale: This is a strong bullish alignment. Price above all three moving averages indicates the stock has momentum across multiple timeframes, which is exactly what a daily momentum screen wants.

6. price_change_pct >= 5

   • Purpose: Require a meaningful positive move on the day.
   • Rationale: Daily momentum stocks should already be showing noticeable strength. A minimum gain of 5% filters for stocks that are actively moving and likely drawing trader attention.

Why Results Match:

• The screen looks for stocks already moving up today, not just stocks that are fundamentally strong.
• It combines price action (up at least 5%), volume expansion (relative volume), and trend confirmation (MACD and moving averages).
• The moderate RSI helps avoid chasing names that are too overbought, while the market cap minimum keeps the results focused on more tradable stocks.
• Overall, these filters are well aligned with daily momentum stocks: liquid, active, trending upward, and showing strong trader interest.