Screening Small-Float Stocks for Range and Rising Lows

Summary

This stock-selection idea combines three filters: prior-session amplitude above 1, a free float no greater than 5.5 billion shares, and a rising-bottom condition. The accompanying formulas calculate amplitude relative to the prior close and compare recent lows over 20- and 5-period windows; qualifying names are then ranked by turnover rate, with the number selected set as a fraction of the available universe. The article presents the screen as a way to find relatively volatile, smaller-float stocks whose lows are moving upward.

The source gives no backtest results or evidence that the screen generates positive returns. It cautions that technical measures can lag, the approach omits company fundamentals, and the added rising-bottom filter may shrink the candidate set. Its formulas and thresholds are platform-specific references, and the discussion recommends considering fundamentals, market conditions, persistence, and diversification. The text does not define the trading horizon, portfolio sizing, execution assumptions, or risk controls needed to turn the screen into a complete strategy.

Key ideas

• The screen requires amplitude above 1, free float at or below 5.5 billion shares, and rising lows.
• Amplitude is measured against the prior close, while the rising-bottom calculation compares rolling lows over 20- and 5-period windows.
• The example ranks qualifying stocks by turnover rate and selects a portion of the universe.
• The article warns that technical signals may lag and that the screen does not account for fundamentals.
• No performance evidence, holding period, or complete risk-management rules are supplied.

Tags

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