Swing trades

Screening Filters

1. Price: 10–150 USD

   • Purpose: Focus on reasonably priced, actively traded stocks suitable for swing traders.
   • Rationale:
     • Below $10 can include many highly speculative or illiquid names that behave erratically and can be hard to trade with size.
     • Above $150 often means higher capital required per position and smaller percentage moves for the same dollar move, which some swing traders prefer to avoid.
     • This range targets mid-priced stocks that often show meaningful swings without being penny stocks.

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

   • Purpose: Ensure sufficient liquidity for entering and exiting swing trades efficiently.
   • Rationale:
     • Dollar volume (price × volume) is a good proxy for how much money trades in and out of the stock daily.
     • A minimum of $2M/month helps reduce slippage and the risk of getting “stuck” in a position, which is critical for short- to medium-term swing trading.

3. Moving Average Relationship: PriceAboveMA20

   • Purpose: Bias results toward stocks in short-term uptrends.
   • Rationale:
     • The 20-day moving average is a common swing-trading timeframe (about one trading month).
     • Requiring price to be above the 20-day MA means the stock is showing positive short-term momentum rather than being in a clear downtrend, which aligns with many swing strategies that “ride” existing trends.

4. RSI Category: Moderate

   • Purpose: Avoid stocks that are extremely overbought or oversold.
   • Rationale:
     • RSI (Relative Strength Index) measures recent price momentum.
     • A “moderate” RSI generally excludes extremes (very high RSI = potentially overbought blow-off; very low RSI = potentially “falling knife”).
     • For swing trades, this helps find names with room to move further in your favor without being at an exhaustion point already.

5. Region: United States

   • Purpose: Restrict the universe to U.S. stocks, as requested.
   • Rationale:
     • Ensures that all results are listed in the U.S., aligning with the user’s focus on the US stock market and making it easier to trade through typical U.S. brokers and within U.S. market hours.

6. Exchange: XNYS, XNAS, XASE

   • Purpose: Focus on major U.S. exchanges (NYSE, NASDAQ, AMEX).
   • Rationale:
     • These exchanges list the bulk of liquid, regulated U.S. stocks.
     • Avoids OTC and pink-sheet names, which are often illiquid, less transparent, and more speculative—less suitable for typical swing-trading strategies.

7. One-Week Predicted Return: ≥ 5%

   • Purpose: Prioritize stocks with a model-estimated potential for meaningful short-term upside.
   • Rationale:
     • This uses a predictive factor (based on historical patterns/quant models) to highlight names where the statistical expectation leans toward at least a 5% gain over the next week.
     • It does not guarantee that return, but it attempts to tilt the list toward candidates with historically favorable setups for short-term swings.

Why Results Match the Swing-Trade Objective

• The trend and momentum filters (PriceAboveMA20, moderate RSI, predicted 1-week return ≥ 5%) are all designed to highlight stocks that may be in the early or middle stages of an up-move rather than late-stage or downtrending names.
• The liquidity and listing filters (dollar volume ≥ $2M, major U.S. exchanges, U.S. region) make sure the names are practical to trade—tight enough spreads, sufficient volume, and robust market infrastructure.
• The price range filter aims at a sweet spot of volatility and accessibility, where position sizing and percentage swings suit common swing-trading approaches.

Overall, these filters combine to find U.S. stocks that are liquid, in short-term uptrends, not at extreme momentum levels, and statistically tilted toward positive near-term moves—characteristics consistent with swing-trade opportunity hunting.