Day Traders focus on repeatedly capturing rapid price movements during the trading day.
Day Trading presents the opportunity to capitalize on closing positions at the end of the trading day without holding any unnecessary risk overnight.
Day Trader Screeners rely on fast-moving volatile stocks that offer explosive moves.
Acting quickly when price signals trigger requires a certain type of stock to focus on. Basic liquidity criteria should be used in conjunction with all of your screens.
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Adding the above criteria to your screens will ensure you are focused on stocks with explosive potential while allowing you to enter and exit trades quickly.
Keep in mind that Day Trading involves capturing quick price fluctuations while focusing on high-moment stocks.
This blog will help you dive deeper into specific strategies for identifying and capitalizing on these rapid price movements.
Buyable Gap Up Preset
Day Traders focus on stocks with huge momentum. Gaps can occur from many different events, but more importantly, they provide a large trading range.
The Buyable Gap Up (BGU) looks for five key components in any strong gap up
- A large Gap Up Percentage
- Above Average Increase In Volume
- Confirmed Uptrend
- High Daily Closing Range (DCR)
In addition to a strong gap in an uptrend, this Screener Preset also incorporates positive earnings to help point you in the direction of a super-performing stock.
10% Gap
As mentioned above, Gaps are major events that provide an opportunity to enter fast-moving stock. Routinely screen for stocks that have the potential for explosive moves.
A Gap over 10% is a commanding move that deserves to be watched.
Depending on your style, long or short, add additional criteria indicating a change in price up or down.
Relative Volume
Volume is a supportive indicator that reflects how strong the current price move is. The higher the volume, the more support in the price movement.
Looking for above-average volume will point you toward stocks with increased volatility supported by confirmation of price movement.
Relative Volume (RV) over 5 indicates the volume is 500% above the 20-day average.
Huge Trading Volume
Breakouts, breakdowns, gaps, reversals, and news events are all causes of huge volume spikes. Day Traders want to be where the action is.
A volume spike of over 5 Million should not be ignored as day trading opportunities will arise.
Make sure to analyze the basic liquidity criteria, including average volume and dollar volume, to make sure your trades don't interfere with the normal price action.
Change In Character
Day Traders move quickly when there is a clear shift in any kind of momentum. A change in character implies a stock has been behaving a certain way but a change in sentiment transforms the price action.
If a stock has been trading with an Average Daily Range (ADR) of 4%, but all of a sudden has an 8% day, the trading sentiment relating to the stock has changed.
Tailor to your personal needs by changing any screenable value or time frame.
Shorting Counter Trend Rallies
Day traders often short stocks in downtrends. Cheap stocks with no earnings are rarely supported and vulnerable to selling pressure.
Eventually, stocks will pop up off a low into overhead resistance, and then head back lower.
This screen looks for stocks in downtrends with the 200-day Simple Moving Average declining and a positive price increase.
Doublers
When a stock has the power to increase 100%, there is clear demand for the stock. Eventually, the strongest stocks will consolidate the gains, form a base, and continue their advance.
Stocks that double can double again. Screen for stocks that have the potential to double in a short time frame.
Day Traders should watch stocks that double, form a base, and then get ready for when the price breaks above recent highs.
High Average Daily Range
Day Trading is a faster-paced style of trading that focuses on quick-moving volatile stocks. Day Traders should look for stocks with a High Average Daily Range (ADR) to take advantage of large daily price swings.
Focusing on stocks that have larger moves than the indices helps Day Traders find volatile price action.
Add this “OR” group to your screens to filter out any slow-moving stocks.
Gaps And Strong Moves Preset
The overlying theme of all screeners for day traders involves finding stocks with large price swings. Continuously screen for stocks that have the potential to move quickly.
Look for liquid stocks with a high ADR that have significant price moves.
This Screener Preset focuses on only the strongest stocks that have a significant gap and a positive daily gain.
Highest Daily Volume Preset
When day trading, you want to navigate quickly in front of the crowd when there is clear accumulation. Huge volume spikes are a driving force for large price movements.
The Highest Volume Edge looks for 4 important characteristics:
- Highest Daily Volume Ever
- Highest Daily Volume since IPO
- Highest Daily Volume in a Year
- Highest Daily Volume since Last Earnings
This Screener Preset utilizes the “OR” function to scan for all stocks exhibiting any of the Highest Volume conditions.
Putting It Together
Day Trading relies on fast price movements in volatile stocks. Capitalize on reducing risk in these quick-acting stocks by closing open positions before the market closes.
Focus on high ADR stocks to benefit from large price swings. High trading volume allows for quick entries and exits without affecting normal price actions.
Look for large price increases and above-average volume
Keep an eye out for gaps at the opening of every trading day to concentrate on stocks demanding attention.
Day Trading thrives on capturing quick intraday price fluctuations. Use these screeners to help uncover stocks with explosive potential.
