• support@stockalertspro.com
Facebook Twitter Youtube
Get Started

How to Scan for Stocks to Day Trade

Day trading requires identifying stocks with strong momentum, volatility, and liquidity. Scanning for these stocks ensures traders focus on the best opportunities for intraday trading. This article covers effective methods on how to scan for stocks to day trade.

1. Key Characteristics of Day Trading Stocks

To find the best stocks for day trading, look for:

  • High Liquidity: Stocks with high trading volume allow easy entry and exit.
  • Strong Volatility: Price movements create profitable opportunities.
  • News Catalysts: Earnings reports, press releases, or economic events can cause significant price swings.
  • Relative Volume: Stocks trading at unusually high volume compared to their average.

2. Using Stock Screeners for Day Trading

Several trading platforms provide stock screening tools to filter stocks based on specific day trading criteria:

  • Finviz: Filters for stocks to day trade based on price movements, volume, and news catalysts.
  • TradingView: Offers customizable scans for technical patterns.
  • ThinkorSwim: Provides real-time stock scans and alerts.
  • Trade Ideas: AI-powered scanner that highlights high-momentum stocks.

3. Essential Technical Indicators for Scanning

  • Average True Range (ATR): Measures volatility to identify high-movement stocks.
  • Relative Strength Index (RSI): Detects overbought or oversold conditions.
  • Moving Averages (50-day & 200-day): Helps determine trend direction.
  • Volume Weighted Average Price (VWAP): Guides traders to key support and resistance levels.

4. Scanning for Pre-Market Movers

Pre-market activity can help identify stocks that may have strong momentum during the trading day. Look for:

  • Stocks with high pre-market volume.
  • Large price changes due to earnings reports or major news.
  • Gainers and losers with over 5% movement before the market opens.

5. Finding Stocks with Breakout Potential

Breakout stocks are ideal for day trading as they show strong price movement:

  • Identify stocks breaking key resistance levels.
  • Use Bollinger Bands to find stocks with increasing volatility.
  • Monitor stocks that have gap-ups or gap-downs at the open.

Conclusion

Learning how to scan for stocks to day trade involves using technical indicators, stock screeners, and news catalysts to identify high-potential opportunities. By focusing on liquidity, volatility, and breakout potential, traders can enhance their chances of making profitable trades.

On this page

Related Article

Our Newsletter
Join Our Mailing List to Get Latest Updates

We don’t spam! Read more in our privacy policy

Stock Alerts Pro

StockAlertsPRO Strives to make each and every trader successful. Contact us today to get the help you need.

Useful Links

Recent Posts

Copyright 2010-2024 StockAlertsPRO. All Rights Reserved Designed & Built In USA by USA developers

IMPORTANT NOTICE! THERE IS SUBSTANTIAL RISK OF LOSS ASSOCIATED WITH TRADING. ONLY RISK CAPITAL SHOULD BE USED TO TRADE. TRADING STOCKS, FUTURES, OPTIONS, FOREX, AND ETFs IS NOT SUITABLE FOR EVERYONE. DISCLAIMER: STOCKS, FUTURES, OPTIONS, ETFs AND CURRENCY TRADING ALL HAVE LARGE POTENTIAL REWARDS, BUT THEY ALSO HAVE LARGE POTENTIAL RISK. YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THESE MARKETS. DON’T TRADE WITH MONEY YOU CAN’T AFFORD TO LOSE. THIS WEBSITE IS NEITHER A SOLICITATION NOR AN OFFER TO BUY/SELL FUTURES, OPTIONS, STOCKS, OR CURRENCIES. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED ON THIS WEB SITE. THE PAST PERFORMANCE OF ANY TRADING SYSTEM OR METHODOLOGY IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Disclaimer of Testimonials:It is not a guarantee of Future Performance, and may not be a reflection of the experiences of other clients or customers. The only purpose of any information on this website or any videos is to provide educational information, not to make a recommendation to trade futures contracts, stocks, options, or forex. We are not qualified to provide financial advice because we are not an authorized investment advisor, broker, or dealer in any jurisdiction. Users of this website are advised that no investment advice is provided based solely on information that is provided for informational purposes, eventhough Stockalertspro.com provides software which provides trading recommendation, it should not be blindly followed because the Trade/Signal/Chart Setups must be filtered through judgment. Your own risk and responsibility when making trade decisions.