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Volume & momentum scan

Momentum Burst Screener

This scan finds stocks that rose more than 4% on the latest day, with volume above 1.5 times the 20-day average.

Run this scan in the live demoFree, no sign-up. The demo uses made-up sample data.

The exact rule

Type this in Chalni: up more than 4% and volume above 1.5x average

  1. Chg % > 4
  2. Volume > 1.5× Avg vol(20)

Find US stocks where today's change (%) is above 4; and today's volume is above 1.5 times the 20-day average volume.

Formula view
change_pct > 4
AND volume > 1.5 * avg_volume(20)
Example chart: Momentum burst (4% day)Daily candles of a made-up sample stock with Lower panel: volume bars, and 1.5 × the 20-day average volume. The shaded day is the day the scan fired.
  • Lower panel: volume bars, and 1.5 × the 20-day average volume
  • Shaded day: the scan fired
Example from Chalni's made-up sample market, not a real stock. It shows the most recent time this scan fired in the sample US market, picked whether or not the trade worked.

What it means

Many swing trades start with one strong day. The "4% breakout" scan was made popular by swing trader Pradeep Bonde (Stockbee), who looks for short bursts of momentum that often last only a few days.

The volume rule asks for more trading than usual, a sign that the move is backed by real demand and not by a few small orders.

How traders use it

  • It works best when the stock was quiet before the burst (narrow days, low volume).
  • Short holding periods are common: a few days, with a stop under the low of the burst day.
  • Skip stocks that have already risen many days in a row.

Watch out for

  • Bursts in a weak market fail more often.
  • A 4% day in a very volatile stock is normal, not special.

Test it before you trust it

Every scan in Chalni sits an exam. First it runs on older data, the practice: each time it picks a stock, the stock is held for 10 trading days and 0.2% is paid in costs. Then it runs on newer data it has never seen, the exam. A scan that only works in practice has just memorised the past.

See the practice and exam results for this scan in the demo (on sample data; real data comes at launch).

Questions

What is a momentum burst?

A short, fast move, often only a few days long, that starts with a big up day on higher volume.

Why 4%?

It is a simple line for an unusually strong day in most stocks. You can change the number in the demo.

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