Whats the next best swing trade

Quick Note on “Best” Swing Trade

No filter can guarantee the “next best” swing trade; markets are unpredictable. What we can do is systematically focus on stocks that statistically exhibit characteristics swing traders often look for: liquidity, clear trends, and controlled momentum.

Below is how each filter contributes to that.

Screening Filters

1. monthly_average_dollar_volume ≥ 2,000,000

   • Purpose: Ensure stocks are sufficiently liquid for easy entry/exit.
   • Rationale: Swing traders need to move in and out over days/weeks without excessive slippage. A minimum average dollar volume of $2M/month helps:
     • Tighten bid-ask spreads
     • Reduce the risk of getting “stuck” in illiquid names
     • Make position sizing more practical

2. moving_average_relationship: PriceAboveMA20 AND PriceAboveMA200

   • Purpose: Focus on stocks in established uptrends with near-term strength.
   • Rationale:
     • PriceAboveMA200: Indicates a longer-term uptrend; the stock is generally in a bullish phase rather than a long-term downtrend.
     • PriceAboveMA20: Shows the stock is currently strong in the short term, often a sign of recent buying pressure.
   • For swing trades, this combination aligns you with the prevailing trend and reduces fighting against longer-term bearish pressure.

3. rsi_category: moderate

   • Purpose: Avoid extremely overbought or oversold conditions.
   • Rationale:
     • “Moderate” RSI suggests the stock is neither stretched to the upside (prone to pullbacks) nor in a collapse.
     • This is ideal for swing traders looking for entries where there’s still room for price to move in their favor without immediately snapping back from an extreme.

4. month_price_change_pct: 8% to 25%

   • Purpose: Capture stocks with recent positive momentum, but not parabolic moves.
   • Rationale:
     • A minimum of 8% monthly gain filters for names with meaningful strength and active recent buying interest.
     • A maximum of 25% avoids names that have already “run too far, too fast,” where the risk of a sharp pullback is higher.
   • This range is a sweet spot for swing setups: strong enough to matter, not so extreme that you’re chasing blow-off moves.

5. is_index_component: GSPC (S&P 500), NDX (Nasdaq 100)

   • Purpose: Restrict to large, well-followed, relatively higher-quality US stocks.
   • Rationale:
     • Constituents of the S&P 500 and Nasdaq 100 are typically more stable, more liquid, and better-covered than small caps or microcaps.
     • This reduces idiosyncratic risk (e.g., random gaps on low volume) and makes technical patterns more reliable for swing trading.

Why Results Match Your Swing-Trade Objective

• Trend-aligned: The moving average filters ensure you’re trading in the direction of an established uptrend with current short-term strength.
• Liquid and tradable: The dollar volume and index-membership filters help ensure tight spreads, better fills, and more reliable technical behavior.
• Momentum, not mania: The monthly price change and moderate RSI balance upside momentum with risk control, giving you candidates that are moving but not yet “blown out.”

Together, these filters generate a focused list of large, liquid US stocks in healthy uptrends with recent but not extreme momentum—conditions that are commonly sought for swing trade opportunities.