What is a good day trade for tomorrow

Screening Filters

1. Relative Volume (relative_vol: {'min': '2'}):

   • Purpose: To identify stocks with significantly higher trading activity compared to their average volume.
   • Rationale: A relative volume of 2 or higher indicates that the stock is trading at least twice its average volume, which often signals heightened interest or activity. This is crucial for day traders who rely on liquidity and volatility to capitalize on short-term price movements.

2. RSI Category (rsi_category: ['moderate']):

   • Purpose: To filter stocks with a moderate RSI (Relative Strength Index), avoiding overbought or oversold conditions.
   • Rationale: Stocks with moderate RSI values are neither overextended nor in a reversal zone, making them more predictable for short-term trading. This aligns with the user's goal of finding a good day trade without excessive risk from extreme RSI levels.

3. Price Change Percentage (price_change_pct: {'min': '2'}):

   • Purpose: To focus on stocks that have experienced a minimum price change of 2% in the last trading session.
   • Rationale: A 2% or greater price movement indicates volatility, which is essential for day traders to profit from intraday price swings. This ensures the selected stocks have enough momentum to provide trading opportunities.

4. Market Capitalization (market_cap: {'min': '1000000000'}):

   • Purpose: To filter for stocks with a market cap of at least $1 billion.
   • Rationale: Larger-cap stocks tend to have higher liquidity and tighter bid-ask spreads, which are critical for day traders to enter and exit positions efficiently. This also reduces the risk of trading illiquid or highly speculative stocks.

5. Optionable Stocks (is_optionable: 'True'):

   • Purpose: To include only stocks that have options available for trading.
   • Rationale: Optionable stocks often have higher trading interest and liquidity. Additionally, the availability of options can provide insights into market sentiment and hedging activity, which can be useful for day traders.

Why Results Match:

• Liquidity and Volatility: The combination of relative volume, price change percentage, and market cap ensures that the selected stocks are liquid and exhibit sufficient volatility, both of which are essential for day trading.
• Predictability: The RSI filter helps avoid stocks in extreme overbought or oversold conditions, reducing the likelihood of unpredictable price reversals.
• Market Interest: The focus on optionable stocks ensures that the selected stocks are actively traded and have additional data points (like options activity) that can provide insights into short-term price movements.

These filters collectively address the user's query by narrowing down stocks that are most likely to provide profitable day trading opportunities tomorrow.