Short trade ideas

Screening Filters

1. rsi_category = overbought

   • Purpose: Find stocks whose momentum (RSI) is stretched to the upside.
   • Rationale: For short trade ideas, a common technical approach is to look for overbought conditions, where price has run up too far too fast and may be vulnerable to a pullback. This mirrors what was done with AMD in your previous example (RSI ~80). Overbought RSI doesn’t guarantee a drop, but it tilts probabilities toward consolidation or mean reversion—exactly the kind of setup traders often look to short.

2. moving_average_relationship = PriceAboveMA20

   • Purpose: Ensure the stock is trading above its short‑term trend (20‑day moving average).
   • Rationale: This confirms the stock is in a strong short-term uptrend and has become extended above its recent average price. For short ideas, traders often look to short strength after it has gone “too far,” not weakness. Price meaningfully above the 20‑day MA suggests potential for a reversion move back toward that average, which is a common short target.

3. support_resistance_relationship = PriceBreakResistance

   • Purpose: Select stocks that have recently broken above a resistance level.
   • Rationale: A fresh resistance break often attracts late buyers and momentum chasers. For a contrarian short setup, this can be attractive: if the breakout fails or stalls after an overbought, extended move, it can lead to a sharp pullback as those late buyers get trapped. This aligns with looking for “short-the-exhaustion” type trades rather than shorting stable, range-bound names.

4. month_price_change_pct.min = 20

   • Purpose: Require at least a +20% price gain over the last month.
   • Rationale: A big recent run-up is classic context for short ideas. The logic is similar to AMD’s “rapid rise” in your prior analysis: large, fast gains often precede profit-taking or corrective moves. By forcing at least +20% in a month, the screener is focusing on names that are likely overextended and more vulnerable to a pullback, rather than grinding, low-volatility names.

5. is_index_component = NDX (NASDAQ‑100 components only)

   • Purpose: Limit results to large, liquid, tech‑heavy stocks similar in profile to NFLX.
   • Rationale: NFLX is a NASDAQ‑100 component. Focusing on NDX ensures:
     • High liquidity (better for entering and exiting short trades).
     • Institutional-quality, well-covered names where technical levels and sentiment matter.
     • Similar “universe” and volatility profile to stocks like NFLX and AMD, making the screen more relevant to the style of trades you’ve been asking about.

Why Results Match Your Request

• You asked for short trade ideas, and all filters are oriented toward finding extended, overbought, momentum names that have run sharply higher (RSI overbought, big 1‑month move, price above MA20, breakout above resistance). These are classic preconditions traders use to scout potential short setups.
• Restricting to NASDAQ‑100 keeps the list in the same quality/liquidity bucket as NFLX, AMD, and other large-cap tech names, which are typically preferred for short trading because of tighter spreads, better borrow availability, and active options markets.

Together, the filters are designed to surface “NFLX/AMD‑style” candidates: strong, recently hot stocks that may now be technically stretched and therefore interesting to evaluate for short trades.