Float rotation = daily volume ÷ free float. A stock with a 5M float that trades 25M shares has rotated its float five times. The metric matters because almost every small-cap move is driven by short-term traders, and they all need an exit.
Why it works
By the time the float has rotated 3–5×, most of the available supply has changed hands at least once. New buyers above that volume are mostly chasing momentum, not allocating capital. The marginal seller becomes the marginal buyer.
Empirically, parabolic small-caps top within the session that the float rotates 3–10×, depending on float size. Sub-5M float names rotate faster and top sooner.
How to compute it live
Open the level 2 / time and sales next to a 1-minute chart with cumulative volume. Free float is on the Stocks Leak ticker page (or the latest 10-Q cover page). Cumulative volume ÷ float, refreshed every 5 minutes.
What rotation doesn't tell you
Rotation is silent on direction — a stock can rotate 10× on the way up and another 10× on the way back down. Pair it with VWAP, prior day's high, and offering risk before sizing exits.
Common mistakes
Using shares outstanding instead of float — the math is meaningless. Insider lockups and restricted blocks aren't trading.
Ignoring stale float numbers. After a recent ATM or PIPE, the float can be 30%+ higher than the last 10-Q. Refresh on every financing 8-K.