Suggest a trade

Screening Filters

1. Price: $20–$120

   • Purpose: Focus on mid‑priced, “tradable” US stocks rather than penny stocks or very high‑priced names.
   • Rationale:
     • Below ~$20 you often get lower‑quality or more speculative companies; spreads and volatility can be less predictable.
     • Above ~$120, position sizing becomes less flexible for smaller portfolios and options can be more expensive.
     • This range is a practical sweet spot for finding stocks suitable for a specific trade idea in a typical retail account.

2. Monthly Average Dollar Volume: ≥ $2,000,000

   • Purpose: Ensure the stocks are liquid enough to enter and exit trades without huge slippage.
   • Rationale:
     • Dollar volume (price × shares traded) ≥ $2M/month filters out very thinly traded stocks.
     • Better liquidity generally means tighter bid–ask spreads, more reliable chart patterns, and less risk of getting “stuck” in a position.
     • For a “specific trade” recommendation, liquidity is critical so the user can realistically execute the idea.

3. Moving Average Relationship: PriceAboveMA20

   • Purpose: Find stocks with price trading above their 20‑day moving average (a short‑term trend filter).
   • Rationale:
     • Price above the 20‑day MA usually signals short‑term upward momentum or at least a constructive trend.
     • For a buy‑side trade, this avoids names in clear short‑term downtrends, aligning the trade idea with existing positive price action.
     • It increases the probability that you’re trading with the trend rather than against it.

4. RSI Category: Moderate

   • Purpose: Target stocks that are neither overbought nor oversold on the Relative Strength Index.
   • Rationale:
     • “Moderate” RSI avoids extremes (e.g., very high RSI that may indicate overbought / due for a pullback, or very low RSI that may signal ongoing weakness).
     • For a new trade idea, this aims for a more balanced risk/reward entry point rather than chasing stretched moves.

5. Is Index Component: GSPC (S&P 500)

   • Purpose: Restrict the universe to S&P 500 companies.
   • Rationale:
     • S&P 500 members are generally larger, more established, and more liquid than the broader market.
     • This reduces idiosyncratic risk (tiny or questionable companies) and focuses on mainstream US names that are more appropriate for many investors.
     • For suggesting a specific trade, these are the kinds of companies most users can trade easily in a standard US brokerage account.

Why Results Match the User’s Request

• The user wants a specific trade in the US stock market. These filters narrow the universe to liquid, mid‑priced S&P 500 stocks that are in short‑term uptrends and not in technical extremes, making them realistic, actionable candidates for a buy‑side idea.
• By combining liquidity, price range, trend (PriceAboveMA20), and balanced momentum (moderate RSI), the screener is designed to surface practical, higher‑quality setups that can be turned into a concrete trade, rather than speculative or hard‑to‑trade names.