Momentum stocks

Screening Filters

1. relative_vol > 1.5

   • Purpose: Finds stocks trading with above-average volume.
   • Rationale: Momentum stocks often attract strong participation and buying interest. Higher relative volume suggests the move is being confirmed by market activity, which makes the trend more meaningful and less likely to be a low-liquidity drift.

2. PriceAboveMA20

   • Purpose: Screens for stocks trading above their 20-day moving average.
   • Rationale: This indicates the stock is in a short-term uptrend and trading stronger than its recent average price, which is a common momentum characteristic.

3. PriceAboveMA200

   • Purpose: Screens for stocks trading above their 200-day moving average.
   • Rationale: This confirms the stock is also in a longer-term uptrend. Momentum stocks are often strongest when they have both short-term and long-term trend support.

4. MACD bullish

   • Purpose: Identifies positive momentum and trend strength.
   • Rationale: A bullish MACD suggests buying momentum is building and that the stock’s trend may still be improving. This is useful for finding stocks with continued upside momentum rather than just a temporary bounce.

5. week_price_change_pct > 0

   • Purpose: Ensures the stock has gained over the past week.
   • Rationale: Momentum stocks should show recent positive price movement, so this filter helps confirm near-term strength.

6. month_price_change_pct > 0

   • Purpose: Ensures the stock has gained over the past month.
   • Rationale: This helps confirm the move is not just very short-lived. A positive monthly return suggests sustained momentum rather than a one-day spike.

Why Results Match:

• Together, these filters look for stocks that are trending up across both short and long timeframes.
• They also require strong recent trading activity, which is often present in true momentum names.
• The combination of price trend filters, momentum indicator confirmation, and positive recent performance helps isolate stocks that are actively moving higher and are more likely to fit the “momentum stocks” definition.