Screening Filters
Price: {'min': 3, 'max': 100}
- Purpose: Focus on reasonably priced, more tradable stocks and avoid extreme penny stocks and very high-priced names.
- Rationale:
- A minimum price of $3 filters out many illiquid penny stocks where price moves can be random or easily manipulated—those “reversals” are often noise.
- A maximum price of $100 keeps the universe in a range most retail traders focus on when looking for emerging trend reversals, rather than very high-priced, more institutionally driven stocks.
- This narrows the list to stocks where a technical trend reversal is more actionable for typical investors.
Monthly Average Dollar Volume: {'min': 300000}
- Purpose: Ensure sufficient liquidity so that price movements are meaningful and tradable.
- Rationale:
- Dollar volume = price × volume; a minimum of $300k per day (on average over a month) helps exclude thinly traded stocks where a few trades can create false “signals.”
- For trend reversal analysis, you want moves that reflect real buying/selling interest, not illiquid spikes that could reverse just as quickly.
Moving Average Relationship: ['PriceCrossAboveMA20']
- Purpose: Capture classic early technical signals of a potential bullish trend reversal.
- Rationale:
- The 20-day moving average (MA20) is a common short-term trend gauge (~1 trading month).
- PriceCrossAboveMA20 means the stock’s price was below the 20-day MA and has now moved above it—this is a textbook sign that downward or sideways action may be giving way to a new short-term uptrend.
- In the context of “potential trend reversal,” this specifically targets stocks transitioning from weakness/neutral to strength.
Support/Resistance Relationship: ['PriceBreakResistance']
- Purpose: Find stocks breaking above prior resistance levels, another strong sign of a potential bullish reversal.
- Rationale:
- Resistance is a price area where the stock previously struggled to move higher (sellers stepped in).
- PriceBreakResistance means the stock has just pushed through that ceiling, which often signals a shift in supply-demand dynamics—buyers are now strong enough to absorb selling pressure.
- When combined with a moving-average crossover, this strengthens the case for an emerging new uptrend rather than a random bounce.
1-Month Price Change %: {'min': 0.0001}
- Purpose: Ensure there is at least some recent positive price momentum.
- Rationale:
- A positive 1-month return (even tiny, >0%) confirms that price has actually started moving up recently, aligning with the idea of a trend turning from down/flat to up.
- This avoids cases where the stock may have crossed a moving average due to a flattening MA, but price hasn’t truly begun to appreciate.
Why Results Match Your Question (“signs of a potential trend reversal”)
Technical reversal signals:
- Price crossing above the 20-day MA and breaking resistance are both widely used technical signs that a prior downtrend or consolidation may be ending and a new uptrend may be starting.
Confirmation by recent performance:
- A positive 1-month price change helps ensure that the “reversal” is not just theoretical—there is actual upward price action backing it.
Focus on tradable, meaningful moves:
- The price range and minimum dollar volume filters remove extremely illiquid or speculative names where “reversals” are often just random noise, leaving you with more reliable and actionable candidates for a potential new trend.
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.