Float Rotation

Float rotation is when a stock's cumulative volume for the day exceeds its float — on paper, every freely tradable share has changed hands at least once. Traders count rotations as a live gauge of how crowded and fast a momentum name is trading.

Each rotation resets the ownership math. After two or three rotations, the average holder's cost basis sits near the current price rather than yesterday's, which is why heavily rotated stocks can hold gains that look unsustainable on a chart. It also means the shareholder base is now mostly day traders, so the first sharp dip can cascade — there are no long-term hands to sit through it.