Screening Filters
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.
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.
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.
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.”
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.
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.
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.
This list is generated based on data from one or more third party data providers. It is provided for informational purposes only by Intellectia.AI, and is not investment advice or a recommendation. Intellectia does not make any warranty or guarantee relating to the accuracy, timeliness or completeness of any third-party information, and the provision of this information does not constitute a recommendation.