A Small-Cap Stock Screen Using Volume, Bollinger Bands, and Profit History

Summary

This document outlines a stock-selection idea combining three filters: rank by trading-volume-based fund strength, select prices above the Bollinger middle band but below the upper band, and focus on companies below a stated market-cap ceiling with no recorded losses. It frames the setup as a way to find smaller companies with buying interest and prices in the upper portion of the Bollinger range.

The discussion notes that high inflows may reflect speculation, Bollinger positioning does not ensure continued momentum, and smaller companies can be more sensitive to market swings. It suggests adding valuation measures, other technical indicators, and market or industry context. The article's final proposed logic is incomplete: it trails off after mentioning valuation measures, and it offers no backtest, precise definitions of fund strength or loss history, or performance results. The screen should therefore be treated as an idea rather than a tested strategy.

Key ideas

• The screen combines a trading-volume-based strength ranking, a Bollinger Band price condition, and filters for market capitalization and loss history.
• The price condition places shares above the middle band and below the upper band.
• The document identifies speculation, price reversals, and small-company volatility as risks.
• It suggests adding valuation, technical, and market-context measures.
• The final selection logic is incomplete and includes no performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.