Screening Filters
Price: $10–$150
- Purpose: Focus on reasonably priced, active stocks suitable for typical swing-trading position sizes.
- Rationale:
- Below $10 often includes very speculative, thinly traded “penny” names with erratic moves and wider spreads.
- Above $150 can make it harder for many traders to size positions and manage risk (larger capital per share, potentially higher dollar volatility).
- This range strikes a balance: active, institutionally interesting names but still accessible for swing traders.
Relative Volume ≥ 1.5
- Purpose: Find stocks trading at least 1.5× their usual volume, indicating unusual interest right now.
- Rationale:
- Swing traders look for fresh momentum driven by news, breakouts, or shifting sentiment.
- Elevated relative volume confirms that current price moves have real participation behind them, increasing the odds of follow-through over the next few days.
Monthly Average Dollar Volume ≥ $1,500,000
- Purpose: Ensure sufficient liquidity for entering and exiting swing trades efficiently.
- Rationale:
- Dollar volume (price × volume) directly measures how much money trades in and out daily.
- A $1.5M+ threshold filters out illiquid names with big bid–ask spreads and high slippage, which are risky for short-term trading.
Moving Average Relationship: PriceAboveMA20
- Purpose: Focus on stocks in short-term uptrends.
- Rationale:
- The 20-day moving average is a common swing-trading benchmark for the intermediate trend.
- Price above the 20-day MA means the stock is generally trending up over the last month, aligning with “trade in the direction of strength” principles for swing trades.
RSI Category: Moderate
- Purpose: Avoid stocks that are extremely overbought or oversold.
- Rationale:
- RSI measures recent momentum. “Moderate” implies the stock has strength but isn’t at extreme levels where sharp reversals are more likely.
- For swing trading, this helps target setups with room to move further, instead of chasing parabolic moves that may snap back.
One-Week Predicted Return ≥ 0%
- Purpose: Emphasize names where a model-based outlook is at least non-negative over the next week.
- Rationale:
- Swing traders typically hold for several days to a couple of weeks; using a 1‑week predictive signal focuses on candidates where the expected short-term bias is upward, supporting the idea of a bullish swing trade.
Why Results Match the Request
- The filters combine short-term uptrend (PriceAboveMA20) with current momentum and interest (high relative volume), which is exactly what swing traders seek for “stock of the day” candidates.
- Liquidity controls (dollar volume and price range) make the picks more practical to trade with tighter spreads and easier position management.
- Risk control via moderate RSI avoids the most extended, “blow-off” type moves that are more prone to quick reversals.
- The non-negative 1-week predicted return aligns the screen with a short holding period and a bullish swing bias.
Together, these criteria narrow the universe to stocks that are liquid, actively moving, in short-term uptrends, and not yet dangerously stretched—high-quality conditions for identifying a “stock of the day” for swing 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.