Find strong momentum stocks

Screening Filters

1. RSI Category: ['moderate']

   • Purpose: To identify stocks with a Relative Strength Index (RSI) in the moderate range, typically between 50-70.
   • Rationale: RSI is a momentum oscillator that measures the speed and change of price movements. Stocks with a moderate RSI indicate bullish momentum without being overbought, which aligns with the user's request for "strong momentum" stocks. This ensures the stocks are in an uptrend but not at risk of an imminent pullback due to overbought conditions.

2. Moving Average Relationship: ['PriceAboveMA20']

   • Purpose: To find stocks where the current price is above the 20-day moving average (MA).
   • Rationale: When the price is above the 20-day MA, it indicates a short-term uptrend and positive momentum. This filter ensures that the selected stocks are trending upward in the near term, which is a key characteristic of strong momentum stocks.

3. Relative Volume: {'min': '1.5'}

   • Purpose: To identify stocks with trading volume at least 1.5 times their average volume.
   • Rationale: Relative volume measures the intensity of trading activity compared to the stock's historical average. Higher relative volume often accompanies strong price movements, as it reflects increased investor interest and confirms the momentum. This filter ensures that the stocks are experiencing significant activity, which supports the momentum thesis.

4. Month Price Change Percentage: {'min': '5'}

   • Purpose: To screen for stocks that have gained at least 5% in price over the past month.
   • Rationale: A positive price change over the past month is a direct indicator of recent momentum. By setting a minimum threshold of 5%, this filter ensures that only stocks with a notable upward trend are included, aligning with the user's request for strong momentum stocks.

Why Results Match:

• The combination of these filters ensures that the selected stocks exhibit strong momentum characteristics. The RSI filter identifies stocks with bullish momentum without being overbought, while the moving average relationship confirms that the stock is in an uptrend. The relative volume filter ensures that the momentum is supported by increased trading activity, and the monthly price change filter highlights stocks with recent upward price performance.
• Together, these filters create a robust screening process to identify stocks with strong momentum, as requested by the user.