Daytrading stocks

Screening Filters

1. Price: $5–$100

   • Purpose: Focus on tradable, reasonably priced stocks.
   • Rationale:
     • Below $5 you often get illiquid penny stocks with wider spreads and higher manipulation risk, which are harder to day trade efficiently.
     • Above $100, price moves can require larger capital per trade and may not suit all day traders, especially those looking to scale in and out with smaller accounts.
     • The $5–$100 range tends to offer a good balance of volatility, liquidity, and accessibility for active day trading.

2. Volume: ≥ 1,000,000 shares (average daily)

   • Purpose: Ensure strong liquidity and tight bid–ask spreads.
   • Rationale:
     • High volume means it’s easier to get in and out quickly without moving the market much.
     • Tight spreads reduce trading costs, which matters a lot when doing many intraday trades.
     • For day traders, low-volume names can trap you in a position or force you to accept poor fills.

3. Relative Volume (Rel Vol): ≥ 1.5

   • Purpose: Highlight stocks trading significantly more volume than usual today.
   • Rationale:
     • Relative volume compares current volume to the stock’s typical volume. A value ≥ 1.5 indicates at least 50% more activity than normal.
     • Elevated relative volume is often driven by news, earnings, or catalysts—exactly the conditions that create intraday volatility and tradeable moves.
     • Day traders typically look for “in play” stocks where today’s action is meaningfully different from the average.

4. Beta: HighRisk (high beta)

   • Purpose: Target stocks that move more than the overall market.
   • Rationale:
     • High beta stocks are more volatile—they tend to have larger intraday price swings.
     • For day trading, volatility is essential; without price movement, there’s little profit opportunity.
     • This filter aligns with the typical day-trading preference for more aggressive, faster-moving names (with the trade-off of higher risk).

5. Price Change % (Today): 3%–20%

   • Purpose: Capture stocks already making substantial intraday moves, but filter out extreme outliers.
   • Rationale:
     • A move of at least 3% indicates a stock is actively moving and potentially reacting to a catalyst or strong supply/demand imbalance.
     • Capping at 20% avoids some of the most extreme, often news-driven spikes where spreads can widen and risk becomes more binary and harder to manage.
     • This range focuses on names with meaningful movement and tradable swings, without concentrating purely on the most unstable movers.

6. Exchange: XNYS, XNAS, XASE (NYSE, NASDAQ, AMEX)

   • Purpose: Restrict to major U.S. exchanges.
   • Rationale:
     • These exchanges typically have better liquidity, more reliable data, and tighter spreads—key for intraday trading.
     • They are home to most well-followed, institutionally traded stocks, which generally respond more cleanly to technical levels and order flow.
     • Excluding OTC and very small venues avoids many illiquid or low-quality names that are unsuitable for most day traders.

Why Results Match “Daytrading Stocks”

• The screen focuses on liquid, actively traded names (high volume, high relative volume, major exchanges), which are essential for quick entries and exits.
• It emphasizes volatility and movement (high beta, 3–20% daily price change), aligning with the need for intraday price action and tradeable swings.
• The price range targets stocks that are neither illiquid pennies nor extremely high-priced, making them more practical for frequent, intraday position sizing.

Together, these filters narrow the universe to stocks that are more likely to be “in play” and technically tradable for day trading strategies, while reducing exposure to illiquid or unresponsive names.