Screening Filters
Market Cap ≥ $10,000,000,000 (Large Caps)
- Purpose: Focus on larger, more established companies.
- Rationale: For short‑term trades, large caps tend to have:
- More predictable price behavior than very small or micro‑cap names.
- Lower risk of extreme, news-driven gaps purely from illiquidity.
- Better institutional participation, which can make technical signals more reliable.
Monthly Average Dollar Volume ≥ $3,000,000
- Purpose: Ensure stocks are sufficiently liquid for short‑term entry and exit.
- Rationale: High dollar volume means:
- Tighter bid–ask spreads (lower trading costs).
- Easier to get in and out without moving the market much, which is crucial if you are trading on days/weeks time frames.
- Less slippage between your intended price and the actual fill.
RSI Category: “Moderate”
- Purpose: Avoid stocks that are extremely overbought or oversold.
- Rationale:
- For short‑term “investing” or trading, extremes in RSI (very high or very low) can signal exhaustion and a higher risk of pullback or whipsaws.
- “Moderate” RSI suggests the stock has positive momentum but is not yet in a blow‑off or panic phase, which can be more favorable for lower‑risk continuation moves in the near term.
Price Above 20-Day Moving Average (PriceAboveMA20)
- Purpose: Select stocks in short‑term uptrends.
- Rationale:
- The 20-day moving average is a common proxy for the short‑term trend (about one trading month).
- Requiring price to be above the 20‑day MA filters for names where buyers are in control recently, which aligns with a short‑term bullish stance.
- This avoids stocks that are currently below their short‑term trend line and may still be in the early stages of a downtrend or consolidation.
1-Month Price Change: +15% to +60%
- Purpose: Capture recent, strong but not extreme positive momentum.
- Rationale:
- A gain of at least 15% in a month signals that the stock has meaningful recent strength—momentum traders often look for this type of move as a sign of active buying interest.
- Capping the increase at 60% avoids extremely parabolic movers, which are more prone to sharp reversals and may be too late for a “short‑term” entry with a favorable risk/reward.
- This range tries to balance upside momentum with some moderation to reduce the likelihood of buying at a peak.
Why Results Match Your Short-Term Investment Goal
- The trend and momentum filters (PriceAboveMA20 plus 15–60% 1‑month gain) focus on stocks that are already moving upward in the near term, which is what most short‑term investors/traders want: names with current strength rather than hoping for a turnaround.
- The risk and stability filters (large market cap and decent dollar volume) help reduce the chance of wild, low‑liquidity swings that are harder to manage in the short term.
- The RSI moderation filter aims to identify stocks with ongoing momentum but without being at such an extreme that a quick reversal becomes highly probable.
Together, these filters narrow the universe to liquid, larger-cap stocks in a healthy short‑term uptrend with solid but not overly stretched recent performance, which is a reasonable way to screen for candidates that may be suitable for short‑term investing or 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.