Strong penny stocks

Screening Filters

1. price max = 5

   • Purpose: Target penny stocks
   • Rationale: Penny stocks are typically defined as lower-priced stocks, often trading under $5. This filter narrows the universe to names that fit the “penny stock” part of the request.

2. relative_vol min = 1.5

   • Purpose: Find stocks with above-average trading activity
   • Rationale: “Strong” penny stocks usually means there is meaningful interest and liquidity. Relative volume above 1.5 suggests the stock is trading at least 50% more actively than usual, which can indicate momentum, attention, or a potential move.

3. beta = HighRisk

   • Purpose: Focus on more volatile, higher-risk stocks
   • Rationale: Penny stocks are often speculative and volatile. A high-risk beta filter helps surface stocks that tend to move more dramatically, which is often what traders look for when searching for “strong” penny stocks.

4. moving_average_relationship = PriceAboveMA5, PriceAboveMA20

   • Purpose: Identify short-term and intermediate-term bullish trend strength
   • Rationale: If price is above both the 5-day and 20-day moving averages, the stock is showing positive trend structure. This helps filter for penny stocks that are not just cheap, but also technically strong and currently trending upward.

5. week_price_change_pct min = 0

   • Purpose: Require non-negative weekly performance
   • Rationale: This filter excludes stocks that have been weak over the past week. It helps ensure the selected penny stocks are at least holding their ground or rising recently.

6. month_price_change_pct min = 0

   • Purpose: Require non-negative monthly performance
   • Rationale: This adds a broader momentum check. A stock that is up or flat over the past month is more likely to have sustained strength rather than being a short-lived bounce.

Why Results Match:

• The price filter ensures the stocks are true penny stocks.
• The volume and beta filters help surface stocks with strong activity and high volatility, which are common traits of tradable penny stocks.
• The moving average and price change filters look for upward price momentum and trend confirmation, so the stocks are not only cheap but also relatively strong.
• Combined, these filters aim to find lower-priced stocks that are actively traded, volatile, and showing signs of bullish price strength.