For swing trading of hype

Screening Filters

1. Monthly Average Dollar Volume ≥ $500,000

   • Purpose: Ensure the stock is liquid enough for swing trading.
   • Rationale:
     • Swing trading requires getting in and out without moving the price too much or suffering from wide bid–ask spreads.
     • A minimum dollar volume of $500k per month suggests there’s sufficient trading activity and interest.
     • For a “hype” style trade, high enough liquidity is especially important because hype names can gap or move fast; liquidity helps reduce slippage on entries and exits.

2. Beta: HighRisk (High Beta)

   • Purpose: Focus on more volatile stocks that move enough to make swing trades worthwhile.
   • Rationale:
     • Beta measures how much a stock tends to move relative to the overall market. High beta = larger price swings.
     • Swing traders need price movement to generate profit over a short to medium time frame; very low-volatility stocks often don’t move enough to justify the trade.
     • “HYPE” by nature implies big moves, momentum, and higher risk—using a high-beta filter targets names with that explosive, hype-like behavior that can create clear entry/exit opportunities.

3. Moving Average Relationship: PriceAboveMA200

   • Purpose: Only consider stocks in a longer-term uptrend.
   • Rationale:
     • The 200-day moving average is a widely used line in swing and position trading to define the primary trend.
     • Price above the 200-day MA suggests the stock is in a bullish phase; swing entries in the direction of the primary trend typically have a higher probability of success.
     • For a “hype” swing trade, you generally want to ride the existing upward momentum rather than fight a downtrend. This filter avoids many structurally weak charts that may just be bouncing in a downtrend.

4. Support/Resistance Relationship: PriceAroundSupport

   • Purpose: Find stocks currently trading near a support zone, which is a common technical entry area for swing traders.
   • Rationale:
     • Swing traders often enter near support (a price level where demand has historically stepped in) to get favorable risk/reward:
       • Risk is defined by a stop slightly below support.
       • Upside potential is larger if the stock rebounds toward prior resistance.
     • Filtering for “PriceAroundSupport” tries to identify stocks that are:
       • In an uptrend (via PriceAboveMA200), and
       • Pulling back or consolidating near support, creating potential entry zones.
     • This aligns directly with your question about “entry points” because a price near a well-defined support level is exactly where many swing traders plan entries.

Why Results Match Your Swing-Trade Question on HYPE

• The filters are tailored to swing trading logic:

  • Uptrend bias (PriceAboveMA200) for trade direction.
  • Entry focus around support (PriceAroundSupport).
  • Sufficient liquidity (Dollar Volume) so entries/exits are practical.
  • Enough volatility (High Beta) to make swings meaningful.

• Although you asked specifically about HYPE, your colleague interpreted this as finding HYPE-like swing setups:

  • “Hype” stocks tend to be high beta and actively traded, which the beta and volume filters are designed to capture.
  • Entry/exit decisions for swing trades often rely on trend and support/resistance, which is why the 200-day MA and “around support” conditions are used.

In combination, these filters search for stocks that:

• Are volatile and potentially “hypey” enough for strong swings.
• Are liquid enough to trade.
• Are in a broader uptrend.
• Are currently located at or near potential swing entry zones (support), which then naturally suggest exit zones near resistance or prior swing highs.