Screening Filters
Relative Volume (min: 1.5):
- Purpose: To identify stocks with significantly higher trading activity compared to their average volume.
- Rationale: Swing traders often look for stocks with increased trading volume as it indicates heightened interest and potential price movement, which is essential for short-term trading opportunities.
RSI Category (Moderate):
- Purpose: To filter stocks with a moderate Relative Strength Index (RSI), avoiding overbought or oversold conditions.
- Rationale: Swing traders aim to capture price movements within a range. Stocks with a moderate RSI are neither overextended nor undervalued, making them more likely to exhibit predictable price swings.
Moving Average Relationship (PriceAboveMA20):
- Purpose: To find stocks where the current price is above the 20-day moving average.
- Rationale: This indicates a short-term bullish trend, which is favorable for swing traders looking to capitalize on upward momentum over a few days or weeks.
Weekly Average Turnover (min: 1,000,000):
- Purpose: To ensure the selected stocks have sufficient liquidity.
- Rationale: High turnover ensures that swing traders can enter and exit positions easily without significantly impacting the stock price, which is critical for short-term trades.
Beta (HighRisk):
- Purpose: To focus on stocks with high beta, which are more volatile compared to the overall market.
- Rationale: Swing traders thrive on volatility, as it creates opportunities for significant price movements within a short time frame. High-beta stocks are more likely to exhibit the price swings necessary for profitable trades.
Why Results Match:
- The filters collectively focus on stocks with high trading activity, moderate RSI, and bullish momentum, which are ideal conditions for swing trading.
- By including high-beta stocks, the screener ensures that the selected stocks are volatile enough to provide meaningful price swings.
- The liquidity filter (weekly average turnover) ensures that the stocks are tradable, reducing the risk of being stuck in a position due to low volume.
These filters are well-suited to identify stocks with a higher probability of being good candidates for swing trading, aligning with the user's query.
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.