I have been trying to figure out how to make this work for me and after 5 months I think I have a pretty good set up to get it working and making a profit. I have attached and email that I sent to yahoo group for stock share which is a charting program for sale here in the US. It should be noted that I do not work for them nor did I have anything to do with the program development. It was at the time the only charting program that I knew offered the Float turnover plug-in. I have backtested this approach over the last 5 months and it is correct in selecting winning stock 70% of the time. It took me from October to January to figure out a way to select stocks. If you take the time to see the attached file you will see how I have done since the first of January. Currently I have two stocks in play: FNSR and ATML both of these stocks are under 5 dollars per share.
Float turnover is also valid for timing sells. If something has gone up sharply and turned over its entire float don't hang around anymore. Works best on smaller cap stocks where one individual or more usually syndicate can mop up the float. Need stocks large and liquid enough to make it worthwhile and not so large that the sums become prohibitive. Bear in mind stocks held by management are often part of the float even if not officially counted as such.
