Penny Stocks

Unlike many people who come into the greenonthescreen chatroom from elsewhere I don't like to focus too much on penny stocks. However I do have a penny filter that I scan daily that I think is useful.


where close is above open and price is above upper bollinger band(20)
and volume is greater than 100000
and price is between .0001 and 1
and volume is 300 percent above average volume(90)
and rsi(2) is greater than 90
and average day range(5) is greater than 3
add column average day range(5) {adr5}
add column average day range(10) {adr10}
add column average day range(30) {adr30}
sort by column 4 descending

This scan is useful precisely because it is very stringent. I tweaked it down from 500% increase because that was eliminating almost everything. Still it only picks up a good play every week or two at the most. The chart has to be perfect, meaning 3 days up with steadily increasing volume. Let's look at some charts for some successful plays from this filter.

First up: FRTL




FRTL came up on the day I wrote the filter. It is really nothing more than the concepts that 13th taught me although I had not applied it to pennies before. I mentioned FRTL to 13th_FLOOR in an after hours chat over the weekend. To be honest I wasn't sure this would be a good play and jumped in it way late. Of course 13th played it perfectly getting in at the open. From then on however I knew this would be a good penny filter.

The next ideal play that came up was VCSY.




By the time VCSY came around I was ready. 

Another good one is GFET



As you can see these kinds can stay in play for several days although 1 day is all I expect to get out of it.

And finally IMDS




As you can see these were some great plays but they don't come around that often. Another important point is that once they are done I don't look at them anymore. As you can see FRTL came up again in the scan but the conditions were not ideal so I ignored it. The volume was down and the long upper wick is a bearish sign. Best left alone.

I will try to post some of the watches from this filter as they come up.