What is the best swing trading stick

Screening Filters

1. Price between $20 and $90

   • Purpose: Focus on mid-priced, actively traded stocks and avoid extremes.
   • Rationale:
     • Swing traders generally avoid very low-priced stocks (sub-$5–10) because they can be illiquid, overly driven by hype, and subject to wide bid–ask spreads.
     • Extremely high-priced names can be capital-intensive to trade and can make position sizing harder for smaller accounts.
     • The $20–$90 band typically captures a large universe of reasonably liquid, institutionally followed stocks that are practical for swing trading.

2. Beta: HighRisk (high beta)

   • Purpose: Target stocks that move more than the overall market.
   • Rationale:
     • Beta measures sensitivity to market moves. A high-beta stock tends to be more volatile.
     • Swing trading relies on price movement over days to weeks; higher volatility increases the potential profit per trade (at the cost of higher risk).
     • Filtering for “HighRisk” beta biases the list toward names that have enough price swing to justify short-term trades.

3. PriceAboveMA20 (Price above 20-day moving average)

   • Purpose: Focus on stocks in a short-term uptrend or with positive momentum.
   • Rationale:
     • The 20-day moving average is a common indicator for short- to medium-term trend.
     • Swing traders often prefer to trade in the direction of the prevailing trend, buying pullbacks in an uptrend or breakouts, rather than fighting momentum.
     • Requiring price to be above the 20-day MA helps avoid names that are currently in short-term downtrends or under distribution.

4. Volume > Monthly Average Dollar Volume

   • Purpose: Ensure strong current liquidity and unusual trading activity.
   • Rationale:
     • Comparing today’s (or recent) dollar volume to the stock’s average monthly dollar volume identifies where there is above-normal participation.
     • Elevated volume often accompanies breakouts, trend accelerations, or news-driven moves—ideal conditions for swing trades.
     • High and above-average liquidity also reduces slippage and makes it easier to enter and exit positions around your desired prices.

5. One-week predicted return ≥ 5%

   • Purpose: Bias results toward stocks with a model-indicated positive short-term edge.
   • Rationale:
     • Swing trades commonly target moves over several days to a couple of weeks. A one-week prediction horizon lines up well with that style.
     • A minimum forecast of +5% focuses on setups where, based on historical/quantitative modeling, the expected move is meaningfully positive rather than marginal.
     • This doesn’t guarantee a 5% gain; it simply prioritizes stocks where the model’s statistics suggest higher potential upside in the near term.

Why Results Match Your “Best Swing Trading Stock” Request

• The high beta and price-above-20-day MA filters together seek stocks that both move enough for meaningful swing-trade profits and are currently in a short-term uptrend.
• The volume vs. monthly average filter finds names with unusual current interest and liquidity, which is where many of the best short-term opportunities tend to appear.
• The one-week predicted return ≥ 5% criterion aligns directly with a short-horizon, high-upside swing-trading mindset.
• The price range keeps you in a practical, typically liquid segment of the market, avoiding many problematic low-priced issues while also avoiding very high-priced names that can be cumbersome to trade.

Taken together, these filters don’t promise the single best stock, but they narrow the universe to stocks that, by design, have characteristics most swing traders look for: volatility, trend, liquidity, and favorable short-term return potential.