Overextended small cap stocks

Screening Filters

1. Market Cap: Max $2,000,000,000

   • Purpose: To identify small-cap stocks.
   • Rationale: Small-cap stocks are generally defined as companies with a market capitalization below $2 billion. By setting the maximum market cap at $2 billion, the filter ensures that only small-cap stocks are included in the results, aligning with the user's request to focus on this category.

2. Relative Volume: Min 1.5

   • Purpose: To find stocks with significantly higher trading activity than usual.
   • Rationale: A relative volume of 1.5 or higher indicates that the stock is currently trading at least 1.5 times its average volume. This suggests heightened interest or activity, which could indicate that the stock is "overextended" or experiencing unusual momentum.

3. Monthly Price Change Percentage: Min 20%

   • Purpose: To identify stocks with significant recent price increases.
   • Rationale: A minimum monthly price change of 20% ensures that only stocks with substantial upward price movement over the past month are included. This aligns with the concept of "overextended" stocks, as such rapid price increases may indicate that the stock is overbought or trading at unsustainable levels.

Why Results Match:

• The market cap filter ensures that the results are limited to small-cap stocks, which is the specific category the user is interested in.
• The relative volume filter highlights stocks with unusually high trading activity, which is often a characteristic of overextended stocks experiencing strong momentum or speculative interest.
• The monthly price change filter captures stocks with significant recent price surges, a key indicator of overextension in the market.

Together, these filters effectively narrow down the search to small-cap stocks that are experiencing both heightened trading activity and substantial price increases, which matches the user's request for "overextended small cap stocks."