Research Workflows
Six ways to use SmallCapData
Our screener scans 2,200+ ASX small caps up to 6x per trading day across six dimensions. Here are the research workflows that get the most out of the data.
Our screener scans 2,200+ ASX small caps up to 6x per trading day across six dimensions. Here are the research workflows that get the most out of the data.
Volatility compression is one of the most reliable precursors to significant price movement in ASX small caps. When a stock's trading range narrows over consecutive sessions while volume contracts, it often signals that a directional move is building.
SmallCapData's technical dimension automatically identifies these compression patterns across the entire ASX small cap universe. Rather than manually scanning charts for Bollinger Band squeezes or narrowing ATR ranges, the algorithm does it up to 6x per trading day and surfaces the tickers showing the tightest compression alongside their overall conviction score.
The key is that compression alone doesn't tell you direction. That's why SmallCapData pairs the technical setup with catalyst, sentiment, and fundamental data. A compressed stock with a pending ASX announcement and rising social media mentions is a very different proposition from one compressing with no catalyst in sight.
Sort by technical score, then look for tickers where the catalyst dimension is also elevated. High technical + high catalyst on a compressed stock suggests multiple factors are converging.
A bullish chart pattern and a material ASX announcement arriving on the same stock is a powerful convergence. Individually, each signal has a modest hit rate. Together, they compound.
SmallCapData parses ASX announcements in real time and categorises them by materiality — drilling results, resource upgrades, earnings reports, contract wins, and regulatory approvals all receive different weightings in the catalyst dimension. When a ticker is also showing technical strength (rising momentum, volume expansion, or trend confirmation), both dimensions score highly and the overall conviction score reflects the convergence.
This workflow is particularly useful during reporting season (February and August) when hundreds of ASX small caps release results within weeks. The screener surfaces which companies are reporting strong numbers AND showing institutional interest in the price action — saving hours of manual cross-referencing.
Filter for HIGH conviction signals and check the catalyst dimension breakdown on the ticker detail page. The most interesting setups have both technical and catalyst scores above 60.
In the ASX small cap space, capital raises are the silent killer. A stock can look technically perfect — breakout pattern, rising volume, strong momentum — but if the company is burning through cash and has limited runway, a dilutive capital raise may be imminent.
SmallCapData's fundamental dimension analyses cash reserves, operating cash flow (burn rate), and debt levels for every scanned ticker. When a company's cash runway is deteriorating — declining cash reserves combined with consistent negative operating cash flow — the fundamental score drops, pulling down the overall conviction score even if the chart looks strong.
This is the filter that pure technical screeners miss entirely. A stock can have a perfect cup-and-handle pattern, but if the company has 3 months of cash left at current burn rates, the probability of a placement announcement disrupting that pattern is significant.
On any ticker detail page, check the fundamental dimension breakdown. Cash runway warnings and burn rate indicators are displayed alongside the score. A high technical score with a low fundamental score is a red flag worth investigating.
When retail discussion volume rises sharply on a stock that's declining — or goes silent on one that's quietly rallying — there's often an information asymmetry worth investigating. Sentiment divergences don't predict direction, but they flag situations where the crowd's attention doesn't match what the price is doing.
SmallCapData's sentiment dimension aggregates data from HotCopper forums, social media mentions, and Google Trends search interest. When sentiment is elevated but price is falling, it may indicate capitulation or informed selling. When price is rising on low sentiment, it may indicate quiet accumulation before broader recognition.
This dimension is most useful as a secondary filter, not a primary signal. Use it to add context to tickers that already show interesting technical or catalyst setups. A breakout pattern with low sentiment (no one is watching yet) is a different opportunity profile than one with extreme sentiment (everyone is already positioned).
Compare the sentiment score to the technical score on the ticker detail page. Large divergences between the two are worth a closer look. Also check the sentiment trend direction — is buzz accelerating or fading?
SmallCapData's first scan runs before the ASX opens. By the time you check the dashboard, 2,200+ small caps have already been scored, ranked, and sorted by conviction. The top signals represent the tickers where the most dimensions are converging simultaneously.
The workflow is straightforward: open the dashboard, review the top 10-20 signals by conviction score, click into any that interest you, and review the full dimension breakdown on the ticker detail page. In under a minute, you have a shortlist of ASX small caps worth deeper research — complete with calculated reference levels, risk indicators, and catalyst context.
For more targeted research, use the sector filter to focus on a specific industry, or sort by individual dimension scores. The mid-session scan then updates scores based on intraday price action and any new ASX announcements.
Start with the conviction score ranking. HIGH conviction signals (70+) have the strongest multi-factor convergence. Use the CSV export to build a watchlist in your broker platform or spreadsheet.
Individual stock analysis only tells part of the story. Sector-level trends often drive small cap performance more than company-specific factors — when lithium is in favour, most lithium juniors rise together. When the sector rotates out, even strong individual stories struggle.
SmallCapData's sector analysis aggregates conviction scores across industries, showing which ASX sectors have the highest concentration of high-scoring tickers. When a sector starts producing significantly more signals than its historical average, it often indicates a rotation into that space.
The correlation matrix adds another layer, revealing which sectors are moving in lockstep and which are diverging. This helps identify whether a sector trend is broad-based or concentrated in a few names, and whether your watchlist has unintended sector concentration.
Check the sector breakdown in the dashboard sidebar and the weekly sector spotlight blog posts. The correlation matrix (Pro) reveals cross-sector relationships and concentration risk.
2,200+ tickers scored up to 6x per trading day. Six dimensions. Every signal tracked publicly. 30-day free Pro trial included.
Open the dashboardNo credit card required. General information only — not financial advice.