High liquidity and volume for penny stocks

Screening Filters & Rationale

1. Market Cap (max: $2,000,000,000):

   • Purpose: Focus on small-cap companies typically classified as penny stocks.
   • Rationale: Smaller market cap stocks often exhibit higher growth potential but come with increased risk, aligning with the penny stock category.

2. Price (max: $5):

   • Purpose: Identify stocks priced under $5 to meet the definition of penny stocks.
   • Rationale: Low-priced stocks are more accessible to investors seeking high-risk, high-reward opportunities.

3. Volume (min: 10,000,000):

   • Purpose: Ensure high trading activity for liquidity.
   • Rationale: High volume reduces the risk of illiquidity, allowing easier entry and exit from positions.

4. Relative Volume (min: 1.5):

   • Purpose: Highlight stocks with increased trading activity compared to their average.
   • Rationale: A relative volume above 1.5 indicates heightened interest, which could signal potential price movement.

5. Weekly Average Turnover (min: $10,000,000):

   • Purpose: Focus on stocks with significant dollar value traded weekly.
   • Rationale: High turnover ensures sufficient market activity, reducing the risk of price manipulation and illiquidity.