Screening Filters
Weekly Average Turnover (min: 1,000,000):
- Purpose: To ensure the selected stocks have sufficient liquidity.
- Rationale: Day traders need stocks that can be easily bought and sold within a short time frame. A high average turnover indicates that the stock is actively traded, reducing the risk of slippage and ensuring that trades can be executed quickly.
Relative Volume (min: 2.5):
- Purpose: To identify stocks experiencing significantly higher trading activity compared to their historical average.
- Rationale: A relative volume above 2.5 suggests that the stock is currently attracting more attention than usual, which often leads to increased price volatility—an essential characteristic for day trading opportunities.
Beta (HighRisk):
- Purpose: To focus on stocks with high market sensitivity and volatility.
- Rationale: High-beta stocks tend to move more aggressively in response to market changes, providing the price swings that day traders rely on to generate profits within a single trading session.
Price Change Percentage (min: 4%):
- Purpose: To filter for stocks that have already shown significant price movement.
- Rationale: A minimum price change of 4% ensures that the stock is experiencing notable momentum, which is critical for day traders looking to capitalize on short-term price trends.
Price-to-Earnings Ratio (PE TTM, max: 15):
- Purpose: To focus on stocks that are relatively undervalued compared to their earnings.
- Rationale: While not a primary metric for day trading, a low PE ratio can indicate that the stock is fundamentally sound and less likely to experience sudden, unpredictable crashes, providing some level of stability for short-term trades.
Why Results Match:
- The filters collectively focus on stocks with high liquidity, significant price movement, and increased trading activity, all of which are critical for day trading.
- High beta and relative volume ensure that the selected stocks are volatile and actively traded, providing ample opportunities for intraday price swings.
- The inclusion of a minimum price change percentage ensures that the stocks are already exhibiting momentum, which is a key factor for identifying potential day trading setups.
- The PE ratio filter adds a layer of fundamental screening, ensuring that the stocks are not excessively overvalued, which could reduce the risk of sudden adverse price movements.
These filters are well-suited to identify stocks that align with the fast-paced and high-risk nature of day trading.
This list is generated based on data from one or more third party data providers. It is provided for informational purposes only by Intellectia.AI, and is not investment advice or a recommendation. Intellectia does not make any warranty or guarantee relating to the accuracy, timeliness or completeness of any third-party information, and the provision of this information does not constitute a recommendation.
