Top day trading stocks to consider

Screening Filters

1. Price > 2:

• Purpose: Excludes very low-priced stocks.
• Rationale: Day traders usually want names that are liquid and tradable, but not so cheap that spreads and erratic moves become excessive. A minimum price above $2 helps avoid many illiquid microcaps.

2. Volume > 1,000,000:

• Purpose: Ensures strong trading activity.
• Rationale: High volume is essential for day trading because it usually means tighter bid-ask spreads, easier entries/exits, and better fill quality.

3. Relative Volume > 1.2:

• Purpose: Finds stocks trading more actively than usual.
• Rationale: Relative volume above 1.2 suggests the stock is drawing unusual attention today, which often creates the intraday volatility and momentum day traders look for.

4. High Beta:

• Purpose: Targets more volatile stocks.
• Rationale: High-beta stocks typically move more than the broader market, which can create larger intraday price swings and more trading opportunities.

5. Price Above MA5 / MA20 and Cross Above MA5 / MA20:

• Purpose: Identifies short-term bullish momentum.
• Rationale: These filters select stocks that are already trending upward and/or just broke above key short-term moving averages. That is useful for day trading because momentum and confirmation are often better than trying to catch falling knives.

6. RSI: Moderate:

• Purpose: Avoids extremely overbought or oversold names.
• Rationale: “Moderate” RSI helps screen for stocks that have room to keep running without being too extended. For day trading, this can improve the odds of entering before a move becomes exhausted.

7. Gap Up:

• Purpose: Captures stocks showing strong pre-market interest.
• Rationale: Gap-ups often signal news, earnings, or heavy sentiment-driven buying. These stocks are frequently among the best day-trading candidates because they can continue trending or remain volatile after the open.

8. US Region:

• Purpose: Limits the search to U.S.-listed stocks.
• Rationale: This keeps the screen focused on the most accessible and familiar market for many traders, with better liquidity and more consistent trading hours.

9. Listed on XNYS / XNAS / XASE:

• Purpose: Restricts results to major U.S. exchanges.
• Rationale: Stocks on NYSE, Nasdaq, and AMEX are generally more liquid and reliable for day trading than many off-exchange or less actively traded listings.

Why Results Match:

• The screen is built to find liquid, fast-moving U.S. stocks with enough volume and volatility for intraday trading.
• It favors momentum names that are already showing strength through gap-ups, higher-than-normal volume, and price above short-term moving averages.
• The high beta filter adds the potential for bigger intraday moves, which is exactly what day traders look for.
• The moderate RSI filter helps avoid stocks that are too stretched, improving the quality of the setup.
• Limiting results to major U.S. exchanges helps ensure the stocks are practical to trade quickly and efficiently.