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Best Stock Screener Criteria For Day Trading


Best Stock Screener Criteria For Day Trading

When it comes to day trading, stock screeners can help you find potential opportunities. Here are some criteria to consider:

  • Volume: Look for stocks high in trading volume. This indicates liquidity and easier entry/exit points.
  • Volatility: This measures price change and potential profit. Look for stocks with significant price movements either way.
  • Price: Choose stocks that fit your budget and strategy – penny stocks or higher-priced options.
  • News: Follow news and events linked to stocks you’re considering. Major developments can affect prices.
  • Technical Indicators: Use technical indicators & chart patterns to spot trends & potential breakouts/breakdowns.

By using these criteria, you can narrow your options & identify the best stocks for day trading.

Technical Indicators

Technical indicators are vital when choosing a stock screener for day trading. They give traders valuable data about the current market sentiment and likely options. There are many technical indicators to pick from. This article will focus on the most important ones when picking a stock screener.

Moving Averages

Moving averages are a popular tool for day traders. They provide insight into a stock’s trend and potential price fluctuation. Here are three of the most used:

  1. Simple Moving Average (SMA). This calculates the average price over a given period, making it ideal for recognizing long-term trends.
  2. Exponential Moving Average (EMA). This is like SMA, but puts more weight on recent prices. So, it’s best for short-term trading.
  3. Moving Average Convergence Divergence (MACD). This uses two moving averages with different periods. It helps to identify momentum and trend.

Adding these to your stock screener can help you spot trades and make informed decisions.

Pro Tip: Moving averages are just one of many tools. Consider volatility and liquidity too when making decisions.

Relative Strength Index (RSI)

The Relative Strength Index (RSI) is an important tool for day traders. It evaluates the magnitude of recent price changes. RSI is always between 0 and 100.

How to use RSI?

  • If RSI is above 70, it suggests the asset is overbought and may need a price correction.
  • If RSI is below 30, it suggests the asset is undervalued and could rise in price.

Traders use RSI to identify trends, entry points, exit points and price targets.

Pro tip: For better accuracy, combine RSI with other technical indicators like moving averages and stochastic oscillators.

Bollinger Bands

Bollinger Bands are a well-known tool for day traders. They track a stock’s volatility to give buy/sell signals.

To use them as criteria for stock screening, do the following:

  1. Identify stocks that have begun a strong trend.
  2. Look at the price movements over time, and plot the Bollinger Bands.
  3. Watch out for when the price touches the upper or lower Bollinger Band. It means the stock is either overbought or oversold.
  4. Use this info to make smart trading decisions. Buy when it’s oversold, sell when it’s overbought.

Bollinger Bands are one of many technical indicators used in day trading. But they can be useful for traders who know technical analysis.


Day traders must consider volatility when choosing stocks. Volatility measures how much the price of the stock rises or falls. A volatile stock may be more profitable but it also adds more risk.

Why is volatility important to day traders? Let’s find out!

Average True Range (ATR)

Average True Range (ATR) is a technical indicator used to measure the volatility of stocks or securities, making it an ideal stock screener criterion for day trading.

ATR illustrates current market conditions in terms of how much the price of an asset may change, showing the level of volatility in trading. Traders compare ATR values between asset markets to identify the most volatile assets to trade. Higher ATR values indicate greater volatility and more significant market movements.

To compute ATR, take the average of the difference between the high and low prices of a security over a certain period (usually 14 days), adjusting for any gaps.

Day traders can use ATR in their strategies, to place stop-loss orders, set profit targets and decide the optimal size of their positions.

Historical Volatility (HV)

Historical Volatility (HV) is a metric for judging the price movements of a stock or security. It is a key factor for day traders, as stocks with high HVs can result in bigger profits.

Stock screeners provide HV data for analysis. They can filter through stocks based on various criteria, like HV.

However, always remember that HV is just one part of the puzzle. Other metrics must also be taken into account, like volume, liquidity, and fundamentals.

Pro Tip: When selecting stocks to trade, don’t rely on one signal or metric. Analyze several indicators and criteria to make an informed decision.

Implied Volatility (IV)

Implied Volatility, or IV, is an option trading term used to measure the expected volatility of an asset. It is derived from the price of options and could be beneficial for stock traders looking to spot potential opportunities.

Day traders should use IV as a filter when selecting stocks to trade. Stocks with high IV may have greater price fluctuations and bigger profits, yet also an increased risk of losses. Before trading, thorough research and analysis should be done.

Other useful criteria for day trading include volume, market cap, price and technical indicators like moving averages and RSI.


Liquidity is key when picking stocks to day trade. It’s all about how quick you can buy and sell. High liquidity means trades are filled in seconds. Low liquidity can lead to slippage and no execution at all. Let’s understand why liquidity matters when selecting stocks for day trading.

Bid-ask spread

Bid-ask spread is the gap between the most a buyer will pay for shares (bid) and the least a seller will accept (ask). This is essential for day traders when choosing stocks to trade. Lower spreads mean more liquid stocks, easier to purchase or sell without affecting the price.

Here are some criteria for finding liquid stocks with low spreads:

  1. Average daily volume: High volume stocks are more liquid and have lower spreads.
  2. Market capitalization: Large-cap stocks generally have higher volumes and narrower spreads than small-cap stocks.
  3. Price range: Narrow price ranges suggest smaller spreads.

By concentrating on these key factors, day traders can find stocks with low bid-ask spreads, making them easier to make money on.


Volume is key when using a stock screener for day trading. This volume reflects the amount of shares bought and sold in a certain time frame. Here are the top criteria to consider when using a stock screener for day trading based on volume:

  1. High Relative Volume: This is the current volume compared to the average volume in a given timeframe. High relative volume means more trading activity and better trading chances.
  2. Average Daily Volume: This is the number of shares traded on average every day. Stocks with high average daily volume are usually highly liquid and easier to buy and sell fast.
  3. Price and Volume: Stocks with both high price and high volume tend to be highly volatile and great for day traders. Analyzing price and volume helps traders identify entry and exit points for their trades.
  4. Intraday Volume: This is the volume of shares traded in a given period, such as one minute or five minutes. Watching intraday volume lets traders spot short-term trends and take advantage.

Day traders can use these stock screener criteria to find highly liquid stocks with the most profitable trading opportunities.

Market Capitalization

Day traders need market capitalization as a key metric to filter stocks and improve liquidity in their portfolio.

Here are the best criteria for stock screening when day trading:

  • Look at stocks with a market cap between $200 million and $2 billion. These stocks usually have high liquidity, low volatility, and quick price changes, ideal for day trading.
  • Use a stock screener to search stocks by market capitalization, sector, and industry. This will help you find those that fit your trading strategy and risk tolerance.
  • Check the stock’s liquidity by looking at its trading volume and spread between bids and asks. High trading volume and a narrow spread means the stock is liquid enough for day trading.
  • Examine the stock’s past price movements and volatility. Stocks with either upward or downward trends and low volatility are less risky than those with unpredictable price movements and high volatility.

By concentrating on market capitalization, sector, industry, liquidity, and volatility, you can enhance your chances of finding profitable opportunities when day trading.

Pro tip: Always use stop-loss orders to limit your risk and avoid unexpected losses when day trading.

Fundamental Indicators

Day traders need fundamental indicators. They show how a company is doing and help with trading decisions. When choosing a stock screener, choose ones with reliable indicators. These must give an accurate view of a company’s performance.

So, what should the best stock screener criteria include for fundamental indicators?

  • Reliability: The indicators should be reliable.
  • Accuracy: They must give an accurate view of a company’s performance.
  • Usability: The stock screener should be easy to use.
  • Relevance: The indicators should be relevant to the specific industry or sector.
  • Timeliness: The data presented must be up-to-date and timely.
  • Comparability: The stock screener should enable you to compare companies based on the same or similar indicators.
  • Accessibility: The stock screener should enable you to access the relevant data easily.

Earnings Per Share (EPS)

Earnings Per Share (EPS) is a way to measure a company’s profitability. It is an important part of finding the best stock screener criteria for day trading.

EPS is calculated by dividing a company’s net income by its outstanding shares. The higher the EPS, the more profitable the company is. Day traders may prefer to focus on companies with high EPS and low P/E ratios. This could indicate the stock is undervalued.

It’s also important to consider other fundamental indicators like ROE, D/E, and P/B. Analyzing these can give us insight into the company’s financial health, performance, and valuation. This helps us make smart decisions when selecting stocks for our day trading portfolio.

Price to Earnings Ratio (P/E)

The price-to-earnings ratio (P/E) is a fundamental indicator day traders use to decide whether a stock is a good investment. P/E is calculated by dividing the market price per share by the earnings per share (EPS) over the last 12 months.

Investors use the P/E to determine if a stock is overvalued or undervalued. Low P/E means the stock is likely undervalued and high P/E means it’s probably overvalued.

Day traders can use a stock screener to locate stocks with desirable P/E ratios. Monitoring the P/E trends and any changes helps traders stay one step ahead of the market.

Dividend Yield

Dividend yield is a must-know indicator that shows the yearly dividend payment of a company related to its stock value. This ratio helps investors understand the income-earning potential of a stock and its capacity to give out profits to shareholders.

The equation for dividend yield is: Dividend per share/Price per share

A high dividend yield suggests that a company pays a big dividend in comparison to its stock price, while a low dividend yield shows the opposite.

Although dividend yield is significant, it should not be used as the only criteria for day trading. Investors must also contemplate other elements, such as the company’s financial wellbeing, market trends, and news events. Using a stock screener that contains multiple criteria can assist day traders in pinpointing the most promising stocks for investment.

Tip: Keep track of a company’s dividend history and payout ratio to decide if the dividend yield is sustainable in the long run.

Combination Criteria

Need to know when to buy, sell, or hold? Combination criteria provide the answer! Filter stocks based on conditions found in the stock market. This section details criteria to look for when using a stock screener for day trading. Make smart selections with the help of this combo criteria!

Golden Cross

Golden Cross is a combo of conditions used by traders to spot potential buy signals in the stock market. It’s one of the top stock screener criteria for day trading.

When the 50-day moving average of a stock’s price moves above its 200-day moving average, Golden Cross happens. This crossover often suggests a long-term bullish trend, so traders use it as a buy signal.

Golden Cross is just one part of a bigger trading system. Other tech indicators such as RSI, MACD and Bollinger Bands are also included.

As a trader, it’s vital to analyze the market using various technical indicators to determine the overall trend and find the best entry and exit points for trades.

Pro tip: Always assess a stock’s volatility and trading volume before taking any investment decisions.


Breakouts happen when a stock’s price passes outside a recognized support or resistance level, with a boost in volume. This suggests a possible trend in the breakout direction.

For day trading breakouts, here are some perfect criteria to look for:

  1. Price range: Select stocks with a high average daily trading range (ATR) for bigger price movements.
  2. Volume: Try to look for stocks with at least 1 million shares in average daily volume.
  3. Moving averages: Technical indicators like moving averages can identify the trend’s direction and support/resistance levels.
  4. News: Breakouts are often caused by news or earnings reports, so keep an eye on the news and events calendar.
  5. Chart patterns: Use technical analysis to detect chart patterns like triangle, consolidation, and flag patterns that signal breakout possibilities.

Combining these criteria can help identify and execute breakouts properly.

Gap up or Gap down

Gap up and gap down are two important terms to know when day trading and using stock screeners.

Gap up means a stock’s opening price is higher than the previous day’s close. This signals increased demand and bullish sentiment.

Conversely, gap down is when a stock’s open is lower than the prior day’s close. This reveals decreased demand and bearish sentiment.

When you use a stock screener for day trading, look for high-volume stocks and big price gaps. And consider technical indicators like moving averages and candlestick patterns.

Remember: gap up and gap down situations can be volatile and risky. So, always manage risk and do your research before trading.

Screening Tools

Searching for stocks to purchase and sell is a crucial part of day trading with success. Utilizing a stock screener can assist you in locating stocks that match certain criteria and make decisions that are more informed. In this article, we will go over the key criteria when picking a stock screener. We’ll review the tools available and how they can help you evaluate stocks rapidly and precisely.


TradeView offers powerful screening tools to help you find the best stocks for day trading. Here are some of their best criteria:

  1. Volume: Filter stocks by volume to easily find highly liquid stocks.
  2. Price: Use the screener to pick stocks within your trading budget.
  3. Moving Averages: Spot potential breakouts or reversals by filtering stocks based on their position in relation to moving averages.
  4. Technical Indicators: Use RSI or MACD to identify trading opportunities.

You can use these criteria, plus other analysis methods, to pick the best stocks for your trading style and objectives.


Finviz is an awesome stock screener. It helps day traders find trading prospects in the stock market. This is done by screening and filtering stocks according to criteria.

Here are some of Finviz’s top stock screener criteria for day trading:

  • Volatility: To spot stocks that can give big price moves.
  • Volume: To make swift buys and sells.
  • Price: So traders can pick stocks that meet their strategy and risk level.
  • Technical Indicators: Like moving averages, RSI, MACD, etc.
  • Sector and Industry: For traders to focus on particular parts of the market.

Using these stock screener criteria in Finviz can save time and effort. It can also increase a trader’s chances of success!

Stock Rover

Stock Rover is an all-in-one research platform that provides powerful screening tools. These help traders to find the ideal stocks for day trading.

The best stock screener criteria for day trading are:

  1. Liquidity: High liquidity helps day traders to enter and exit positions quickly.
  2. Volatility: High intraday price movement or volatility gives potential trading opportunities.
  3. Stock Price: Low priced stocks can move 10-20% in a single day.
  4. Average daily volume: This needs to be high enough to interest day traders.
  5. Time of Day: Early and late in the day is the best time to trade stocks.

Use Stock Rover’s screening tools to find stocks that fit your criteria. Make informed day trading decisions.


Backtesting is a way for traders to review how a stock screener would have fared in the past. It enables you to analyze the performance of the screener over a particular time-frame and guarantee that it conforms to your demands before taking a trade.

Let’s look into backtesting further, and the criteria you should use to select a stock screener.

Strategy Builder Tool

A strategy builder tool is great for traders! It helps them test their strategies and pick the best criteria for day trading, with a stock screener. Here’s what you do:

  1. Select the trading strategy you want to test.
  2. Set parameters and conditions, such as entry and exit points, stop loss, and profit targets.
  3. Run a backtest to see how the strategy did in the past.
  4. Analyze the results. See what worked and what didn’t.
  5. Make changes and repeat the backtesting until you have the best criteria for day trading.

Using a strategy builder tool and backtesting means you have a better chance of success in the stock market.

Evaluate the Strategy

Evaluating trading strategies? Backtesting is a must. It helps traders identify the top stock selection criteria for day trading. Simulate strategies with historical data to check how well they’d do under the same market conditions.

When backtesting, select the criteria that work best for your strategy – stock price, volume, volatility, stock pattern, etc. Once you’ve tested your strategy using different criteria, review the results and figure out which criteria worked best. This will help you tweak your trading plan, optimize the stock screener criteria and up your day trading success chances.

Pro Tip: Evaluate trading strategies considering several factors such as past performance, risk tolerance and market conditions. Automated backtesting tools can help speed up the process and deliver more accurate results.

Optimize the Strategy.

Backtesting is an awesome tool for day traders. It helps them to perfect and refine their strategy. They can test each element of the stock screener in a methodical way.

Here are the top stock screener criteria for day trading while backtesting:

  1. Liquidity: Get stocks that can take a lot of trading volume without changing the price.
  2. Volatility: Choose stocks that move a lot. These give you more chances to trade.
  3. Price range: Best to go with stocks that cost between $20 and $100. They have a good balance of volatility and liquidity.
  4. News catalysts: Look out for news like earnings reports or other news. They can cause changes in the price, giving you trading chances.
  5. Technical indicators: Try Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Bollinger Bands.

Pro Tip: When backtesting, mix these criteria to make a stock screener that suits your trading style and risk tolerance.

Frequently Asked Questions

1. What is a stock screener?

A stock screener is a tool that helps traders filter through thousands of stocks to find ones that meet specific criteria. It can sort stocks by various financial metrics such as price, volume, and earnings, among others.

2. What are the best criteria to use for day trading?

The best criteria for day trading stocks depends on an individual’s trading strategy. However, some useful metrics to consider include trading volume, relative strength index, volatility, and moving averages.

3. What should I look for in a good stock screener?

A good stock screener should have a user-friendly interface, allow for customization of search criteria, provide real-time data, and allow for the creation of watchlists and alerts.

4. Can I use a free stock screener for day trading?

Yes, there are several free stock screeners available that can be used for day trading. However, they may have limited features and may not provide real-time data.

5. Should I use multiple screening criteria for day trading?

Yes, using multiple screening criteria can help traders filter out stocks that do not meet their specific trading strategy. It can also help identify potential trading opportunities by using a combination of criteria.

6. Are there any disadvantages to using stock screeners for day trading?

One disadvantage is that using stock screeners may lead to a potential loss of nuance and context. While screeners can filter out stocks based on specific metrics, they may overlook important information that cannot be quantified, such as market changes, company news, or geopolitical events.

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