Low-Float Catalyst Scanner

Identify explosive low-float momentum opportunities using the ROLR pattern (436% gain, January 2026).

The ROLR Formula

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Low Float + Binding Catalyst + Hot Sector + Pre-Market Gap → Same-Day Explosive Move

Required conditions (ALL must be present):

•Float <20M shares (ideal <5M)
•Market cap $25M-$500M
•Binding catalyst (not "in discussions")
•Pre-market gap >20%
•Volume >10x average in pre-market

Key Difference from Short Squeeze

Factor	Short Squeeze (BNAI)	Low-Float Momentum (ROLR)
Driver	Forced covering	Volume overwhelming float
Timeframe	Days	Hours (same day)
Focus	Short interest >20%	Float <20M shares
Exit	Scale over 2-3 days	Exit day 1 or day 2 max

Workflow

1. Screen Candidates

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Float: < 20M shares (ideal < 5M)
Market Cap: $25M to $500M
Price: $2 to $20
Average Volume: > 100K
Pre-Market Gap: >= 20%
Pre-Market Volume: >= 3x 30-day average

Data Sources: FinViz, Trade-Ideas, Benzinga Pro, MarketChameleon

2. Validate Catalyst

Tier 1 (Trade Aggressively):

•Binding LOI/partnership with named major entity
•FDA approval/clearance
•Major contract with dollar amounts
•Acquisition announcement

Tier 2 (Trade Cautiously):

•Non-binding LOI with credible partner
•Product launch in hot sector
•Analyst initiation with coverage

Tier 3 (Avoid):

•"In discussions" or "exploring"
•No SEC filing backup
•Pump without news
•Volume spike without catalyst

Validation:

•PR released pre-market (optimal) or after-hours prior
•Partner/contract verifiable
•Hot sector alignment (crypto, AI, biotech, gaming)
•Insider ownership >30% (locked shares = lower effective float)

3. Identify Entry Window

Phase	Timing	Price Action	Strategy
Pre-Market	4:00-9:30 AM ET	Gap forms	Scout, no entry yet
Opening Drive	9:30-10:00 AM	Explosive move	ENTER on breakout
Mid-Morning	10:00-11:30 AM	Peak or continuation	SCALE profits
Afternoon	12:00-4:00 PM	Fade begins	EXIT remaining

4. Execute Entry

Pre-Market Entry (Aggressive):

•Enter after 8:00 AM ET if volume confirms
•Target near VWAP ($13.20 in ROLR case)
•Higher risk, higher reward

Opening Breakout (Balanced):

•Wait for break above pre-market high
•Enter on first 5-min green candle above VWAP + 9-EMA
•Add on micro-pullbacks (<30% retracement)

Position Sizing:

•Maximum 2-3% of portfolio (25-50% normal size due to volatility)
•Max 1-2% account risk per trade

5. Execute Exit

Target	Action
+50%	Sell 1/3 (lock capital)
+100%	Sell 1/3 (pure profit)
+200%	Sell remaining
Resistance	Exit at psychological levels ($20, $25, $30)

Stop Loss: $0.20 below entry OR low of previous red candle

Exit Immediately:

•Massive red volume bar (distribution)
•Break below VWAP + 9-EMA
•Trading halt >30 minutes
•End of day 1 (gaps often fill next morning)

CRITICAL: Exit before close on day 1. ROLR dropped 28.93% on day 3.

Red Flags (Do Not Enter)

•Float >50M shares (won't move explosively)
•No clear news catalyst (manipulation risk)
•Stock already +300%+ over multiple days (exhausted)
•Heavy insider selling (Form 4 filings)
•Pending dilution (S-3 shelf, ATM offering announced)
•Pre-market volume declining after initial spike

Core Principles

•SPEED is everything - These moves happen in hours, not days
•EXIT on day 1 - Most low-float runners fade 30-50% next day
•SIZE DOWN - Use 25-50% normal position due to extreme volatility
•NEWS is required - Volume without catalyst = manipulation

Technical Indicators

Must Monitor:

•VWAP (stay above = bullish)
•9-EMA (trend confirmation)
•Relative Volume (>10x = real move)
•RSI (>70 = overbought, prepare exit)

Patterns:

•Bull flags (shallow <30% pullback)
•Flat-top breakouts (resistance break)
•ABCD continuation (higher highs/lows)

Claude's Role When Using This Skill

Do:

•Screen for low-float stocks with pre-market gaps
•Validate catalyst quality and partner legitimacy
•Calculate float and effective float (minus insider holdings)
•Alert when volume/price action suggests exit
•Remind of same-day exit rule

Cannot:

•Guarantee any stock will run
•Time exact tops or bottoms
•Predict which halt will resume up vs down
•Override your execution discipline

References

Load as needed:

•rolr-case-study.md - Complete ROLR analysis, intraday metrics, post-surge behavior
•entry-exit-tactics.md - Detailed entry strategies, exit protocols, risk management
•screening-tools.md - Scanner configurations, sector focus, replication framework

Low-float momentum trading is extremely volatile. Position size appropriately. Never risk more than 1-2% of account per trade.