Stocks for short term gans

Screening Filters

1. Market Cap ≥ $2,000,000,000 (Large / Mid Caps)

   • Purpose: Focus on more established, liquid companies rather than tiny, illiquid names.
   • Rationale:
     • Larger-cap stocks typically have tighter bid–ask spreads and higher trading volumes, which makes entering and exiting positions for short-term trades more efficient and less costly.
     • They’re less prone to extreme manipulation than micro-caps, so price moves are more likely to reflect real market interest and momentum rather than random spikes.

2. Relative Volume ≥ 2

   • Purpose: Capture stocks that are trading with at least double their usual volume.
   • Rationale:
     • High relative volume signals unusual interest or activity (news, earnings, sector moves, etc.).
     • Short-term price moves are more sustainable when they’re backed by strong volume, making these names more attractive for short-term gain attempts.
     • It helps avoid “dead” stocks that barely trade and whose prices don’t move much intraday.

3. PriceAboveMA20 (Price above 20-day Moving Average)

   • Purpose: Filter for stocks in a short-term uptrend.
   • Rationale:
     • The 20-day moving average is a standard short-term trend indicator.
     • Price trading above this level suggests upward momentum rather than a downtrend or sideways chop.
     • For short-term gains, traders typically prefer to ride existing uptrends rather than fight them.

4. RSI Category: Moderate or Overbought

   • Purpose: Focus on stocks with strong momentum (RSI elevated) but not necessarily extreme exhaustion.
   • Rationale:
     • RSI (Relative Strength Index) measures the speed and magnitude of recent price changes.
     • “Moderate” RSI often corresponds to healthy, continuing trends.
     • “Overbought” can indicate strong bullish momentum; many short-term traders intentionally target overbought stocks because they are showing powerful buying interest, even if they’re closer to a potential pullback.
     • Combining these categories catches a spectrum of momentum names, from solid uptrends to very strong, possibly extended runs.

5. 1-Week Price Change ≥ +10%

   • Purpose: Select stocks already demonstrating significant recent gains.
   • Rationale:
     • A gain of at least 10% in one week is a clear sign of strong short-term momentum.
     • Momentum-based approaches assume “strength begets strength”: stocks that have moved sharply can continue to move in the same direction in the short term, especially when supported by volume and trend filters.
     • This ensures the results are not slow movers but active names that have recently been rewarding short-term traders.

Why Results Match the User’s Request (“short-term gains”)

• Momentum-focused:

  • PriceAboveMA20, high RSI, and strong 1-week performance all target stocks already moving upward, aligning with a short-term gains mindset rather than long-term value.

• High Activity & Liquidity:

  • Market cap ≥ $2B and relative volume ≥ 2 ensure that the names are actively traded, with enough liquidity and participation for traders to realistically capitalize on short-term moves.

• Screening for “in play” stocks:

  • The combination of strong recent price performance and unusual volume highlights stocks that the market is currently focused on—those are the names most likely to offer short-term trading opportunities.

In combination, these filters are designed to surface liquid, actively traded stocks exhibiting strong recent upside momentum—conditions that are typically sought by traders looking for short-term gains.