Penny stocks that are showing buy signals

Screening Filters

1. Market Cap: 100M–500M USD

   • Purpose: Focus on smaller, higher-risk/higher-reward companies commonly associated with “penny stock” style trading, while avoiding the most illiquid microcaps.
   • Rationale:
     • Many true microcaps (<100M) can be extremely illiquid and subject to manipulation.
     • 100M–500M is still relatively small vs. large caps, so you’re still in the “speculative/small company” zone, but with somewhat better reporting standards and liquidity.

2. Price: 1–5 USD

   • Purpose: Directly implement the “penny stock” requirement based on common U.S. usage (stocks trading under $5).
   • Rationale:
     • The upper bound of $5 aligns with the SEC’s informal penny-stock price definition.
     • The lower bound of $1 avoids ultra-low-priced stocks (e.g., $0.01–$0.50), which tend to be extremely speculative, prone to reverse splits, and harder to trade efficiently.

3. Monthly Average Dollar Volume: ≥ 1,000,000 USD

   • Purpose: Ensure sufficient liquidity so that the penny stocks are actually tradable (easier entries/exits, tighter spreads).
   • Rationale:
     • Dollar volume (price × shares traded) is more informative than simple share volume for filtering out illiquid tickers.
     • A $1M+ monthly average helps avoid “dead” penny stocks that barely trade and are more vulnerable to manipulation.

4. Moving Average Relationship: PriceCrossAboveMA20 and PriceAboveMA200

   • Purpose: Capture technical “buy signals” based on trend and momentum.
   • Rationale:
     • PriceCrossAboveMA20:
       • A common short-term bullish signal: the current price has just crossed above its 20-day moving average.
       • Suggests a potential short-term trend reversal or acceleration upward—typical “buy signal” used by traders.
     • PriceAboveMA200:
       • The 200-day MA is a widely watched long-term trend indicator.
       • Price above the 200-day MA indicates the stock is in a longer-term uptrend rather than a prolonged downtrend.
     • Combined, these filters look for penny stocks that are not only in a broader uptrend but also showing fresh, shorter-term bullish momentum—exactly what many traders mean by “showing buy signals.”

5. 1-Week Price Change %: -100 to 100

   • Purpose: In practice this is a wide range; it effectively doesn’t restrict weekly performance.
   • Rationale:
     • Ensures that only valid percentage changes are included (no broken data) but does not bias toward only already-exploded gainers or steep losers.
     • Keeps the universe broad so the “buy signal” filters (moving averages) do the heavy lifting, rather than just chasing the biggest recent moves.

6. Region: United States

   • Purpose: Limit results to U.S.-listed companies.
   • Rationale:
     • U.S. penny stocks have more standardized reporting and regulatory frameworks.
     • Makes the definition of “penny stock” (sub-$5) more consistent and avoids mixing different market structures/currencies.

7. Exchange: XNYS (NYSE), XNAS (NASDAQ), XASE (AMEX/NYSE American)

   • Purpose: Restrict results to major U.S. exchanges, excluding OTC/pink-sheet names.
   • Rationale:
     • Many penny stocks trade OTC, where transparency and liquidity are often much worse.
     • By sticking to NYSE/NASDAQ/AMEX, you get listed securities that generally meet minimum listing standards, reducing some of the extreme risks associated with OTC penny names.

Why Results Match Your Request

• You asked for penny stocks:

  • The price filter ($1–$5) and small-cap range (100M–500M) directly target lower-priced, smaller companies typically considered penny stock territory.

• You also wanted stocks showing buy signals:

  • The technical filters (PriceCrossAboveMA20 and PriceAboveMA200) are classic bullish indicators used by traders to identify potential entry points—short-term momentum turning up within a longer-term uptrend.

• Additional liquidity and quality controls (dollar volume ≥ $1M, major U.S. exchanges) make sure the results are actually tradable and somewhat better regulated, which is especially important when dealing with penny stocks.