A Small-Float Stock Screen Above the Five-Day Moving Average

Summary

This proposed stock screen selects shares with a daily trading range above a threshold, a relatively small freely tradable share count, and a closing price above its five-day moving average. The stated rationale is to combine short-term volatility, the possibility of greater movement in smaller-float stocks, and a near-term upward price trend. Example formulas and sample code show how the conditions could be combined and how a subset of candidates might be ranked.

The document cautions that the screen omits company fundamentals and may capture short-lived speculation or encourage chasing recent strength. It suggests adding valuation and other fundamental measures, further technical indicators, longer-term trend context, and volume information. The excerpt provides no backtest, return evidence, trading costs, or detailed definition of the range threshold’s suitability. Its claims about small-float shares are presented as rationale, not demonstrated results, so the screen remains an unvalidated starting point.

Key ideas

• The screen combines elevated daily range, a limited freely tradable share count, and price above a short moving average.
• Its rationale links volatility and smaller float with potential short-term trading opportunities.
• The document notes that the filters omit fundamentals and may reflect speculative price action.
• Suggested additions include valuation, other technical signals, longer-term trend, and volume context.
• No performance testing or empirical evidence is included in the excerpt.

Tags

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