Stock to buy for day trade

Screening Filters

1. Price between $5 and $80 ('price': {'min': '5', 'max': '80'})

   • Purpose: Focus on tradable, reasonably priced stocks suitable for active day trading.
   • Rationale:
     • Below $5 you often get very illiquid, risky penny stocks with wide spreads and erratic moves that are hard to trade in and out of quickly.
     • Very high-priced stocks (hundreds or thousands per share) can be harder to size properly for small/medium accounts and may move in large dollar increments, increasing risk per share.
     • The $5–$80 range tends to include many actively traded names where intraday setups are more manageable for most day traders.

2. High Liquidity ('monthly_average_dollar_volume': {'min': '1000000'})

   • Purpose: Ensure there is enough dollar volume traded so you can enter and exit quickly without moving the market too much.
   • Rationale:
     • A minimum of $1,000,000 in average monthly dollar volume filters out thinly traded stocks.
     • Higher dollar volume usually means tighter bid–ask spreads, better order execution, and less slippage — all critical for day trading where small price differences matter.

3. Breakout Above Resistance ('support_resistance_relationship': ['PriceBreakResistance'])

   • Purpose: Find stocks that are breaking above a known resistance level, a classic technical signal used for short-term momentum trades.
   • Rationale:
     • When price breaks above resistance, it often indicates strong buying pressure and the potential for a momentum move.
     • Day traders frequently look for these breakouts because they can lead to fast, tradeable intraday trends with clear technical levels for entries and stops.

4. Strong Daily Move Already Underway ('price_change_pct': {'min': '3'})

   • Purpose: Target stocks that are already moving significantly (at least +3%) during the day.
   • Rationale:
     • Day traders generally want volatility and movement; a stock that’s flat is not interesting.
     • A minimum 3% price move suggests the stock is “in play” today — news, momentum, or unusual activity that can fuel further intraday moves.

5. Recent (Very Short-Term) Upward Bias ('min5_price_change_pct': {'min': '0'})

   • Purpose: Ensure that, in the last 5 minutes, the price is at least flat or ticking up, not pulling back hard.
   • Rationale:
     • This is a micro-timing filter: if the last 5-minute move is positive or at least not negative, it suggests near-term buying pressure is intact.
     • For intraday entries, you generally want to avoid stocks that are just starting to roll over right as you’re looking to buy.

6. Unusually High Current Trading Activity
   ('comparison_between_indicators': [{'indicator1': 'relative_vol', 'indicator2': 'monthly_average_dollar_volume', 'operator': 'greater than'}])

   • Purpose: Capture stocks trading with higher-than-normal activity (relative volume above their usual level).
   • Rationale:
     • “Relative volume” compares current trading volume to typical volume; when it’s high, the stock has unusual attention and activity.
     • Requiring relative volume to be greater than the norm (here expressed via a comparison to average dollar volume) aims to find stocks that are especially active right now — prime hunting grounds for intraday opportunities.
     • High relative volume often accompanies news, breakouts, or institutional interest, all of which can fuel sharper intraday moves.

Why Results Match Your Day-Trading Focus

• The price and liquidity filters (price range and minimum dollar volume) focus on names that are realistically tradable intraday with manageable risk and good execution.
• The technical and momentum filters (break of resistance, ≥3% price move, positive last 5-minute change) specifically look for stocks already showing strong, tradable intraday momentum — exactly what day traders typically seek.
• The relative volume filter ensures you’re seeing stocks with unusual current activity, which are more likely to have strong intraday trends and volatility.

Together, these filters don’t “pick the one stock to buy,” but they narrow the universe to a list of candidates that fit common day-trading criteria: liquid, moving, breaking key levels, and actively traded right now. You’d then apply your specific strategy (entry triggers, risk management, time of day rules, etc.) to choose among them.