Fast moving oppertunities for scalping

Screening Filters

1. Price: 1 – 50 USD

   • Purpose: Focus on reasonably priced, actively traded stocks that can move in tradable increments for scalping.
   • Rationale:
     • Stocks under $1 are often illiquid, highly manipulated, or have large spreads—bad for rapid in-and-out trades.
     • Very high-priced stocks (e.g., $300+) can move in large dollar jumps, but position sizing becomes harder for smaller accounts and the spread/commission impact per share can be less ideal for scalping.
     • The $1–$50 range tends to capture many “trader favorites” that move enough in percentage terms while still allowing flexible position sizing and typically tighter spreads.

2. Relative Volume (relative_vol ≥ 1)

   • Purpose: Find stocks trading at above-average volume today, indicating they are “in play” and moving more than usual—key for scalping.
   • Rationale:
     • Relative volume compares current volume to the recent average (e.g., 1.5x–3x normal).
     • When relative volume ≥ 1, it signals increased attention, news, or short-term catalysts, which often translates into stronger price moves and more intraday volatility.
     • High relative volume usually narrows spreads and improves order execution—critical for scalpers who rely on quick fills.

3. Monthly Average Dollar Volume (≥ 200,000 USD)

   • Purpose: Ensure a minimum level of liquidity and tradability over time.
   • Rationale:
     • Dollar volume = price × volume; it tells you how much money flows through the stock.
     • A minimum threshold (even a relatively modest one like $200k/month) filters out the most illiquid names where orders can move the price too much and slippage becomes severe.
     • For scalping, you need to be able to enter and exit without dramatically impacting price; this filter helps protect against thinly traded names.

4. RSI Category: “moderate” or “overbought”

   • Purpose: Target stocks with recent upward momentum or active price action, which is what scalpers often look for.
   • Rationale:
     • RSI (Relative Strength Index) is a momentum indicator; “moderate” implies a healthy trend without being extremely stretched, and “overbought” signals strong recent buying pressure.
     • These conditions often coincide with intraday moves, breakouts, or follow-through momentum—good environments for short-term scalps.
     • Excluding deeply oversold names reduces exposure to choppy, “dead” bounces where liquidity and follow-through might be less reliable for quick trades.

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

   • Purpose: Limit results to major US exchanges with better liquidity, transparency, and order execution quality.
   • Rationale:
     • NYSE/NASDAQ/AMEX-listed stocks tend to have tighter spreads, more consistent volume, and better regulation—ideal for active trading styles like scalping.
     • This filter excludes OTC and pink sheet stocks, which may be extremely volatile but often have poor liquidity and large spreads, making scalps risky and costly to execute.

Why Results Match “Fast-Moving Opportunities for Scalping”

• The relative volume and RSI (moderate/overbought) filters together focus on currently active, “in play” stocks that are attracting attention and often moving quickly intraday.
• The price range and dollar volume filters aim to balance volatility and accessibility with liquidity and tight spreads, which are crucial for scalping.
• The exchange filter keeps you in the most liquid, regulated part of the US market, improving fill quality and reducing execution risk.

Overall, these filters are designed to surface US-listed stocks that are:

• Liquid enough to enter and exit quickly;
• Experiencing higher-than-normal activity right now;
• Showing momentum characteristics that are attractive for short-term scalping strategies.