A momentum screener filters thousands of stocks down to a shortlist of the strongest setups. Here's the exact criteria to use, why each filter matters, and how to refine the output for different market environments.
A screener is only as good as the criteria behind it — and for momentum investing, that means filtering for strength, not bargains. The difference between a novice screener (which finds 500 random stocks that cleared some arbitrary filter) and a professional one (which finds 30–50 genuinely promising setups) is a thoughtful, sequential filter design where each criterion serves a specific purpose.
Here is the layered approach that momentum traders use — moving from broad structural filters to narrow, actionable setup criteria.
Layer 1: Universe quality filters
Before any momentum criteria, narrow the universe to tradeable stocks:
Price > $3 — eliminates penny stocks where spreads are too wide and moves are noise
Average daily volume ≥ 100,000 shares — ensures you can enter and exit without moving the stock
Market cap > $100M (optional but common) — filters out the smallest shells; $300M+ for traders requiring larger liquidity
Exchange: NYSE, NASDAQ, AMEX — avoids OTC markets where information is thinner
These filters alone cut the universe from 10,000+ listed names to roughly 4,000–5,000 investable stocks — the same base the WideRadar breadth calculations use.
Layer 2: Trend structure filters
Momentum works best in stocks that are already in confirmed uptrends, not in recovery or reversal plays:
50-day SMA > 200-day SMA — the most important structural filter; stocks in confirmed uptrends only
Price > 50-day SMA — stock is trading above its medium-term trend line
Price within 25–30% of 52-week high — keeps setups near their breakout zones rather than deep in recovery
Price ≥ 75% of 52-week high — a useful alternative framing; stocks near their highs have proven buyers behind them
Layer 3: Relative strength filters
The best momentum stocks are outperforming the market, not just going up in a rising market:
RS Score ≥ 70 (using WideRadar) or IBD RS Rating ≥ 80 — stock outperforms most peers
RS Score rising (not just high) — RS acceleration is an early accumulation signal
In a top-4 sector — sector tailwind amplifies individual stock momentum; check the Leaders tab for current sector rankings
Layer 4: Setup-specific filters
Finally, narrow to stocks that are near an actionable entry — not just strong stocks but ones with a specific setup forming:
ATR% 2–5% — meaningful daily range; enough movement to be worthwhile, not so volatile that stops are unmanageable
RSI 50–70 (for momentum entries) — not overbought (RSI > 80 means extended), not oversold (RSI < 40 means broken)
Volume contraction in consolidation — look for stocks in tight bases where volume has dried up; expansion from low volume signals the setup is ready
Price within X% of a key resistance level — you want to buy before the breakout, not after a 15% extension from the base
Adjusting for market environment
Tighten or loosen your screener based on the breadth regime:
Strong breadth (5-day ratio > 2:1) — use the full screener; even borderline setups can work
Mixed breadth (ratio 1:1–2:1) — tighten the RS and Leadership Score requirements; only take the top 20% of output
Weak breadth (ratio < 1:1) — stop screening for new longs entirely; use the list only for watchlist preparation when conditions improve