2 Filters Every Stock Must Pass Before It Goes on My Hitlist

by Roger Scott | Jun 5, 2025

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Before I add a single stock to my hitlist — let alone trade it — it’s got to pass two critical filters. These aren’t suggestions. They’re mandatory.

If a stock fails either one, it doesn’t make the cut, no matter how shiny the setup might look.

Most of you ask me how I narrow it down from hundreds of names flashing across the scanner to the handful I actually care about each day.

This is how — these two filters keep me focused, efficient and out of trouble.

Filter 1: It Has to Show Up on the Daily Chart First

This is nonnegotiable. I don’t care how good a stock looks intraday — if it doesn’t first show up on the daily, I’m not interested. That’s the foundation.

I’m always scanning daily charts to spot potential breakouts or breakdowns from key levels. If the daily isn’t clean, I don’t even look to the right.

You want a bullish setup? Then the daily chart better show a strong uptrend, a breakout pattern or some kind of major technical level in play. For bearish setups, I want to see a breakdown or weakness relative to the broader market.

It all starts with the daily. No daily setup, no trade.

Filter 2: It Must Have Volume That Stands on Its Own

The second filter is volume — and not just any volume. I need to know the stock can stand on its own two feet. That means news or relative volume that’s significantly higher than average.

Especially in a dead market, I’m not going to waste time on stocks that are only moving because the market is. I want names that are doing something real — independent of the broader tape.

That’s why I use tools like the ProTrader Dashboard to track real-time volume buzz. If a stock is moving but doesn’t have the juice behind it, it’s a no. In a strong market, I might be more flexible.

But in chop, volume becomes one of the most important confirmations I’ve got.

Both filters need to align. I start with the daily, and I verify with volume. That’s it. If both check out, then — and only then — does the stock go on my hitlist.

I hope that helps!

Roger Scott
Roger Scott Trading

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