Pennie stocks to trade

Screening Filters

1. Price: $1 to $5

• Purpose: Focus on penny stocks.
• Rationale: Penny stocks are generally considered lower-priced stocks, often trading under $5 per share. This range captures the typical universe the user is asking for while excluding higher-priced names that don’t fit the “penny stock” definition.

2. Volume: at least 1,000,000

• Purpose: Find stocks with enough daily trading activity.
• Rationale: Penny stocks can be extremely illiquid, which makes them difficult and risky to trade. A minimum volume of 1 million shares helps ensure there is enough market participation for easier entry and exit.

3. Relative Volume: at least 1.5

• Purpose: Identify stocks trading more actively than usual.
• Rationale: Higher-than-normal volume often signals increased attention, momentum, or a potential catalyst. For traders, this is important because penny stocks move best when there is strong, unusual trading activity.

4. Beta: HighRisk

• Purpose: Target more volatile stocks.
• Rationale: Penny stocks are typically sought by traders looking for fast price movement and short-term opportunities. A high beta filter helps select stocks that are more sensitive to market moves and generally more volatile, which aligns with active trading interest.

5. Moving Average Relationship: Price Above MA20, Price Above MA5, Price Cross Above MA5

• Purpose: Spot short-term bullish momentum.
• Rationale: These filters help find penny stocks that are not just cheap, but also showing signs of upward price action.
  • Price Above MA5: indicates very short-term strength
  • Price Above MA20: suggests the stock is holding above a broader near-term trend
  • Price Cross Above MA5: captures fresh momentum and possible breakout setups

Why Results Match:

• The price filter isolates true penny stocks.
• The volume and relative volume filters make sure the stocks are actively tradable, not just cheap and illiquid.
• The high beta filter favors stronger price swings, which is often what traders want in penny stocks.
• The moving average filters add a momentum overlay so the results are not just low-priced names, but penny stocks showing technical strength and potential trade setups.

Overall, these filters are well suited for finding tradable penny stocks with liquidity, volatility, and near-term upward momentum.