Are there any double bottoms about to form?

Screening Filters

1. market_cap ≥ $500,000,000 & market_cap_category = [micro, small, mid, large, mega]

   • Purpose: Focus on reasonably established, tradable U.S. companies of all typical size tiers, while avoiding the very smallest, most illiquid names.
   • Rationale:
     • Double-bottom patterns are more reliable when there is sufficient participation and liquidity.
     • A minimum market cap of $500M filters out tiny, highly speculative companies where price moves can be random and patterns less meaningful.
     • Including all size categories from micro to mega keeps the universe broad so potential double bottoms aren’t missed across cap ranges.

2. volume ≥ 0

   • Purpose: Effectively no additional volume restriction.
   • Rationale:
     • Your colleague chose not to constrain by minimum daily volume, likely to keep the candidate list as wide as possible within the market-cap constraint.
     • This allows the pattern search (near support, moving averages, etc.) to be the primary filter for possible double bottoms.

3. rsi_category = [moderate]

   • Purpose: Select stocks where momentum (RSI) is neither extremely overbought nor deeply oversold.
   • Rationale:
     • A double bottom “about to form” often shows a first sharp drop (oversold), then a bounce, and then a retest/hold of support where RSI normalizes.
     • By focusing on moderate RSI, the screener aims for situations where price has already stabilized around support and may be starting the right side of the “W,” rather than catching a still-falling knife.

4. moving_average_relationship = [PriceCrossAboveMA5]

   • Purpose: Find stocks where the price has just crossed above the short-term 5-day moving average.
   • Rationale:
     • For a double bottom that is “about to form” or just starting to complete, you’d expect a short-term shift from downward/flat to upward momentum near the support zone.
     • Price crossing above the 5-day MA is a classic early sign that buyers are stepping in after a support test, which fits the early stage of the right leg of a double bottom.

5. support_resistance_relationship = [PriceAroundSupport]

   • Purpose: Focus on stocks trading near a known support level.
   • Rationale:
     • A double bottom, by definition, has two lows near the same support area.
     • Requiring price to be “around support” is critical: without that, you’d mostly get random moves above moving averages, not potential W-shaped basing patterns.
     • This is the core structural filter aligning directly with the “double bottom” concept.

6. month_price_change_pct between -20% and 0%

   • Purpose: Capture stocks that have pulled back in the last month but have not completely collapsed.
   • Rationale:
     • A recent decline is usually necessary to form the first leg down of a double bottom.
     • Limiting the drop to no worse than -20% avoids extreme breakdowns where support may be failing rather than holding.
     • Keeping the upper bound at 0% ensures the stock is still in a down-to-sideways phase, consistent with a base forming, rather than already in a strong uptrend where a fresh double bottom is less likely.

7. list_exchange = [XNYS, XNAS, XASE] & region = [United States]

   • Purpose: Restrict results to U.S.-listed stocks on major exchanges (NYSE, NASDAQ, AMEX).
   • Rationale:
     • Directly matches your request for U.S. stocks.
     • Major exchanges help ensure regulatory standards and generally better liquidity/price quality compared with OTC markets.

Why Results Match Your Question (“double bottoms about to form”)

• Price near support: The PriceAroundSupport filter targets stocks at or near established support, which is essential for identifying the two-lows structure of a potential double bottom.
• Recent pullback, not a crash: The monthly performance window (-20% to 0%) finds stocks that have declined enough to carve out a low but not so much that support is obviously broken.
• Early bullish shift at support: PriceCrossAboveMA5 looks for a fresh short-term turn upward right around the support area, consistent with the early formation or completion of the second bottom.
• Balanced momentum: A moderate RSI suggests selling pressure has eased and the stock is stabilizing, often where a second bottom might hold and buyers begin to reappear.
• Focused, liquid universe: Market-cap constraints and U.S. exchange filters keep the focus on more reliable, tradable stocks, where chart patterns like double bottoms tend to be more meaningful.

Taken together, these filters don’t guarantee a double bottom, but they systematically narrow the U.S. market to stocks likely in the technical zone where a double bottom pattern could be forming or confirming.