Daytrading Signale andern

Screening Filters

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.