Stocks under 2 dollars to look out for

Screening Filters

1. Price: 0.20 – 2.00 USD

   • Purpose: Directly target low-priced stocks under $2.
   • Rationale:
     • The user wants “stocks under 2 dollars,” so the maximum price of 2 is the core constraint.
     • The minimum price of 0.20 helps avoid extremely illiquid “trip-zero” penny stocks (e.g., $0.01–$0.05) that can be highly speculative, easily manipulated, and hard to trade in size.

2. Market Cap: ≥ 50,000,000 USD

   • Purpose: Filter out the tiniest, riskiest microcaps while still staying in the low-priced universe.
   • Rationale:
     • Many sub-$2 names are microcaps or “nano-caps” with very small market caps, which can be extremely volatile and prone to pump-and-dump dynamics.
     • Requiring at least $50M market cap keeps you in the more established end of the low-price space—still risky, but generally with more real operations, filings, and investor attention than ultra-tiny shells.

3. Monthly Average Dollar Volume: ≥ 500,000 USD

   • Purpose: Ensure the stocks are reasonably tradable and not purely illiquid “dead” tickers.
   • Rationale:
     • “Stocks to look out for” implies names you can realistically trade in and out of.
     • A minimum $500K in average monthly dollar volume means at least some consistent buying and selling activity, which:
       • Reduces the odds of extreme slippage when entering/exiting.
       • Suggests actual market interest rather than just a stagnant listing.

4. RSI Category: Moderate

   • Purpose: Avoid stocks that are extremely overbought or oversold in the short term.
   • Rationale:
     • A moderate RSI (typically around 40–60) screens out:
       • Overbought names that may have just spiked and could be at risk of a pullback.
       • Severely oversold names that may be in free fall or experiencing serious negative catalysts.
     • This helps surface stocks that are not at technical extremes—often more stable “watchlist” candidates where you can monitor for better entry signals rather than chasing extremes.

5. 1-Month Price Change: 0% – 50%

   • Purpose: Focus on stocks showing some recent strength, but not wild spikes.
   • Rationale:
     • A minimum of 0% removes stocks that are down over the past month, leaning toward names that are at least holding or improving.
     • A maximum of 50% excludes ultra-parabolic moves that may be driven by hype, news spikes, or short squeezes—often the least stable “to look out for” if you’re thinking beyond short-term speculation.
     • This range supports the idea of “interesting, potentially improving” low-priced stocks without going into extreme momentum territory.

Why the Results Match Your Request

• The price filter (≤ $2) directly implements your key requirement: low-priced stocks.
• The market cap and dollar volume filters refine that universe to names that are more legitimate and tradeable, avoiding the worst of the illiquid penny-stock space.
• The RSI and 1-month performance filters focus on stocks that:
  • Are not in technical distress,
  • Have shown some recent positive or stable behavior,
  • But haven’t already exploded in a way that’s statistically unsustainable.

Together, these filters aim to surface sub-$2 stocks that are liquid enough, somewhat established, and technically reasonable candidates to watch, rather than the most speculative or unstable names in the low-price universe.