Screening Filters
Price: 5–100 USD
- Purpose: Focus on mid-priced, tradeable stocks suitable for active day trading.
- Rationale:
- Below $5 you often get very illiquid, highly speculative penny stocks with wide spreads and erratic moves — hard to trade systematically and with size.
- Above $100, position sizing becomes less flexible for smaller accounts and percentage moves can be “expensive” in dollar terms.
- The $5–$100 band is a common sweet spot for liquid, actively traded names that can move enough intraday to generate signals without being purely lottery tickets.
Monthly Average Dollar Volume: ≥ $1,000,000
- Purpose: Ensure there is sufficient liquidity and institutional interest for intraday entries and exits.
- Rationale:
- Dollar volume (price × volume) is a better liquidity measure than share volume alone.
- A minimum of $1M/day on average reduces the risk of slippage and difficulty getting in/out at your price.
- For a daytrader like “Ernie,” you want names where you can execute quickly and reliably when a signal appears.
Relative Volume (Rel Vol): ≥ 1.8
- Purpose: Focus on stocks trading with unusually high activity today versus their normal behavior.
- Rationale:
- Relative volume > 1.8 means current volume is at least 80% higher than typical for that time of day.
- Elevated volume often accompanies catalysts (news, earnings, breakouts/breakdowns) and fuels stronger intraday trends and volatility — ideal conditions for daytrading signals.
- This filter avoids “quiet” stocks where price barely moves, even if they are generally liquid.
3-Minute Rate of Change: ≥ 0.7
- Purpose: Capture stocks already showing short-term momentum on very recent price bars.
- Rationale:
- A positive, meaningful 3-minute rate of change indicates the stock is actively moving right now rather than being static.
- This is aligned with intraday momentum/trend-following or breakout scalp strategies, where you want price already “in motion,” not waiting for something to happen.
- It narrows the universe to names that might be generating actionable real-time signals, not just theoretically interesting charts.
Moving Average Relationship: PriceAboveMA20
- Purpose: Bias signals toward bullish setups in established short-term uptrends.
- Rationale:
- Price above the 20-period moving average (often 20-day on daily charts, or 20-bar on intraday, depending on implementation) suggests the stock is in a short-term uptrend.
- Combining this with positive short-term rate of change and high relative volume highlights potential long-side daytrade candidates: breakouts, trend continuations, and intraday strength.
- It helps avoid countertrend “knife-catching” entries which are generally riskier for most daytraders.
Why Results Match “Daytrading Signal for Ernie”
- The filters collectively target liquid, mid-priced stocks that are unusually active today (high relative volume), are already moving intraday (3-min ROC), and are trading above a key short-term moving average (uptrend bias).
- This combination is precisely what many intraday traders look for as a real-time signal universe: stocks with enough volatility, volume, and trend structure to offer tradeable intraday setups, rather than illiquid or stagnant names.
This list is generated based on data from one or more third party data providers. It is provided for informational purposes only by Intellectia.AI, and is not investment advice or a recommendation. Intellectia does not make any warranty or guarantee relating to the accuracy, timeliness or completeness of any third-party information, and the provision of this information does not constitute a recommendation.