day trading watchlist

My Daily Watchlist Scanner

A Daily Watchlist is important to have stocks to be prepared to trade for the next day. You can use a variety of parameters, but below are the 3 parameters that I currently use for while scanning for stocks to trade:

Average Volume

Average volume is the number of shares exchanged in a given day. This does not account for the number of trades. (for example, a stock can trade 50,000 shares, but only 3 large trades). Volume is important because you need someone to buy the shares you sell or sell you the shares you want to buy. Average Volume takes the number of trading days and averages it out for an average. I look for stocks that trade at least 1 Million shares a day on average. This ensures my ability to enter and exit a trade quickly.

Average Volume > 1 Million

Relative Volume

Relative Volume compares to the current volume to the average volume. For example, if a stock has a relative volume of .5 and is trading 1 million shares, then recently it is trading half of the current average trading volume. I look for stocks that have an above average trading volume because there is interest in the stock. I look for stocks with a relative volume of 2.0 or higher.

Relative Volume > 2.0

Average True Range

ATR looks at the range of a stock (high and low price range) on a given range. I look for stocks with at least 50 cent range so that I know that the stock will move so tI can make a profit for a day trade.

Average True Range > 50 Cents


As you create a daily watchlist, try to narrow it down your stocks so that you can focus on watching 2-3 stocks for an entry opportunity. If you are not getting what you need you can alter and add additional criteria (Such as price if you want low or high priced stocks…).

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